Garden leave is a term many employees hear, but few fully understand. Whether you’re resigning or being terminated, garden leave affects your work obligations, pay, and what you can do next.
What Is Garden Leave?
Garden leave is a period during your notice when you remain employed and paid but are not required to perform your usual work duties.
Employers use garden leave to:
▪️Protect sensitive information and client relationships
▪️Prevent employees from immediately joining competitors
▪️Maintain stability within teams
In short: you’re employed, paid, but “on pause.”
Garden Leave After Resignation
If you resign and your employer places you on garden leave:
▪️You remain employed and paid throughout your notice period
▪️You cannot perform normal duties or contact clients
▪️You cannot work for another employer without permission
▪️The employer protects its business interests and prevents sensitive information leaving
Garden leave in resignation is essentially a paid notice period managed by your employer.
Garden Leave After Termination
If your employer terminates your employment and puts you on garden leave:
▪️You are still employed and paid until your notice ends
▪️You cannot work elsewhere during this time, unless approved
▪️The employer controls when garden leave starts and ends
It serves as a protective measure for the company, and gives you time to plan next steps
Key Differences: Resignation vs Termination
| Feature | Resignation | Termination |
|---|---|---|
| Initiated by | Employee | Employer |
| Control over start | Employer may enforce | Employer decides |
| Purpose | Protect business from immediate move to competitor | Protect business and manage exit |
| Restrictions | Cannot work for another company | Cannot work elsewhere, may be stricter |
| Pay & benefits | Continues per contract | Continues per contract |
Can You Work for Another Employer?
During garden leave, you usually cannot join another company, because you remain legally employed. Only written permission from your employer allows you to take up outside work.
Why Employers Use Garden Leave
Garden leave is used to:
▪️Protect confidential information
▪️Prevent competition from former employees
▪️Give a buffer period before the employee fully exits
It’s most common in senior, client-facing, or strategic roles.
Key Takeaways
▪️Garden leave = paid employment without day-to-day work
▪️Resignation vs termination affects who initiates and controls the leave
▪️Restrictions apply, including no outside work and confidentiality obligations
▪️Always check your contract for specific terms