Garden Leave Agreement

When an employee resigns from a company, they may be asked to serve a garden leave agreement. This is a common practice in many industries, especially those that deal with confidential information and sensitive business data. In this article, we will discuss what a garden leave agreement is, why it is important, and what it entails.

What is a garden leave agreement?

A garden leave agreement is a type of contract that is used to keep an employee away from the workplace for a period of time after they have resigned. During this time, the employee will continue to receive their salary and benefits, but they will not be allowed to perform any work or interact with clients or colleagues. The term “garden leave” is used because the employee is often encouraged to spend time at home or in their garden during this period.

Why is it important?

There are several reasons why a company may choose to implement a garden leave agreement. The most common reason is to protect confidential information and prevent an employee from taking sensitive data with them to a competitor. During the garden leave period, the employee is not allowed to access company information or engage in any business activities, which reduces the risk of data theft.

Another reason why garden leave agreements are important is to minimize the impact of an employee`s departure on the organization. When a key employee resigns, it can disrupt the workflow and cause delays in projects. The garden leave period allows the company to prepare for the employee`s departure and make arrangements for their replacement.

What does it entail?

The terms of a garden leave agreement may vary depending on the industry and the company`s specific needs. However, there are some common elements that are typically included. These may include:

– The duration of the garden leave period

– The employee`s obligations during the period, such as not engaging in any business activities or contacting clients

– The obligations of the employer, such as continuing to pay the employee`s salary and benefits

– The consequences of breach of the agreement, such as termination of the employee`s employment or legal action

It is important to note that garden leave agreements should be carefully drafted and reviewed by legal professionals to ensure that they are enforceable and in compliance with applicable laws.


A garden leave agreement is an important tool that companies can use to protect their confidential information and minimize the impact of an employee`s departure. While it may seem like an inconvenience for the employee, it is a necessary measure to ensure the company`s continued success. If you are an employer considering implementing a garden leave agreement, it is important to seek legal advice to ensure that it is drafted correctly and meets your specific needs.

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