Estimated reading time: 14 minutes

Key Takeaways

• Your garden leave rights generally keep you employed, paid, and bound by contractual duties during your notice period while you are kept away from day-to-day work.

• Employers can usually place you on garden leave only if your contract authorizes it; pay and benefits should continue unless a lawful basis says otherwise.

• Garden leave is different from severance and “pay in lieu of notice” because employment continues during garden leave.

• If pay or benefits are withheld, follow a clear enforcement sequence: review your contract, gather evidence, raise the issue internally, send a formal demand, and seek legal help.

• Document everything: contracts, notices, HR emails, missed pay dates, and benefits statements to support an unpaid wage or breach-of-contract claim.

Table of Contents

• Introduction

• What Is Garden Leave?

• How Garden Leave Differs from Other Termination Methods

• Pay and Benefits During the Notice Period

• Employer Obligations While an Employee Is on Garden Leave

• Garden Leave vs. Severance

• How to Enforce Garden Leave Rights and What to Do If Pay/Benefits Are Withheld

• Practical Examples & Sample Garden Leave Clause

• Conclusion

• FAQ

• Can an employer place me on garden leave without a written clause?

• Am I still paid during garden leave?

• Can I start a new job while on garden leave?

• What if my employer refuses to pay me during garden leave?

• Is garden leave the same as severance?

Introduction

Garden leave rights refer to an employee’s entitlement, during their notice period, to remain employed and paid while being kept away from work duties or the workplace — commonly used to protect sensitive company information and prevent immediate competition. This high-level concept and its typical use are well established in resources such as the Wikipedia overview, a practical plain-English definition from Workable, and a legal analysis from Epstein Becker Green (EBG).

This guide explains when an employer can place you on garden leave, what pay and benefits you should receive during the notice period, the difference between garden leave and severance, employer obligations, and practical steps to enforce your garden leave agreement.

We answer common questions employees and HR professionals face: can an employer places on garden leave without a clause, what pay during notice period is due, and what notice period pay employer obligations actually look like in practice.

What Is Garden Leave?

Garden leave occurs when an employer, after notice of resignation or termination, instructs an employee to stay away from work during their notice period while keeping them on payroll. Employers commonly use this to restrict access to clients, sensitive data, or to prevent employees joining competitors immediately. This core definition is reflected in the widely cited overview of garden leave and Workable’s HR glossary entry.

In practice, when an employer places on garden leave, the employment contract remains in force. You are still employed, and your rights and duties under the contract continue.

Employees are typically told not to perform work, not to access company systems, and not to contact clients or colleagues. These restrictions aim to protect business interests without ending the employment relationship.

Many garden leave clauses require the employee to be reasonably available to answer questions or hand over information; this applies only if the contract says so. Without express wording, an employer should not impose obligations beyond the agreement.

Typical reasons include protecting intellectual property, preserving client relationships, and ensuring ongoing confidentiality and non-solicitation obligations remain effective. These are standard drafting goals discussed in EBG’s discussion of garden leave provisions.

Garden leave usually appears as a written clause in the employment contract or handbook. Well-crafted clauses specify when and how garden leave can be used, what pay and benefits continue, how long it can last, and what restrictions apply. For drafting examples and issues to consider, see EBG’s original analysis on garden leave provisions.

Understanding these fundamentals sets the stage for evaluating your garden leave rights and pay during notice period if your employer invokes such a clause.

How Garden Leave Differs from Other Termination Methods

Garden leave preserves the employment relationship. You continue to receive salary and, usually, contractual benefits during the notice period. Your contractual duties — such as confidentiality and loyalty — remain active. These are standard characteristics noted by Workable’s garden leave definition and EBG’s 2021 update.

By contrast, with immediate termination or pay in lieu of notice, employment ends right away. The employer typically pays a lump sum equal to the notice period. Post-termination obligations depend on what your contract and any separation agreement say. In that situation, you are no longer employed — a key legal difference from garden leave.

Severance is also different. Severance usually becomes payable after employment ends and may be provided as a lump sum or in installments, often in exchange for a release of claims. It does not, by itself, keep you under ongoing duties unless the severance agreement explicitly imposes them.

Constructive dismissal (also called constructive discharge) happens when an employee resigns because of the employer’s serious breach of contract or unlawful conduct. That is not the same as garden leave and triggers separate legal issues.

The key legal distinction is that garden leave preserves employment (with pay and contractual obligations) during the notice period, while severance and pay in lieu of notice typically end the employment relationship.

Pay and Benefits During the Notice Period

When placed on garden leave, employees are generally entitled to their normal pay and contractual benefits for the duration of the notice period, as summarized in Workable’s explainer and analyzed in EBG’s foundational paper on garden leave clauses.

Salary entitlement. Salary should continue at the rate specified in your contract, on the usual pay schedule. Employers generally cannot unilaterally cut pay during garden leave unless the contract expressly permits it or the employee has materially breached obligations. For a deeper look at contract language and enforcement risks, see EBG’s 2021 legal update.

Benefits continuation. Contractual benefits (for example, pension or retirement contributions and health coverage) typically continue during garden leave unless the contract or official policies state otherwise. Always check the exact wording of the benefits and garden leave clauses. This expectation is noted in EBG’s garden leave provisions discussion.

Bonuses and prorated payments. The treatment of bonuses depends on your contract. Discretionary awards may be limited or excluded during notice; guaranteed or formula-based bonuses might be owed on a prorated basis if the agreement says so. If your contract requires a pro rata bonus during garden leave, the employer must honor it, as discussed in EBG’s analysis of pay and benefits in garden leave clauses.

Jurisdictional specifics. In some jurisdictions, special rules apply to restricted periods. For example, certain states set minimum compensation for post-termination restrictions. For jurisdictional specifics (example: Massachusetts and others), see EBG’s 2021 update summarizing developments.

Pay in lieu of notice vs. garden leave. If an employer chooses pay in lieu of notice, employment ends immediately and the employee receives a lump sum for the notice period. Garden leave is different: employment continues, so salary and benefits should continue as normal and contractual obligations remain in force.

Example A (contract with garden leave clause). Employee A resigns and has an eight-week notice period. The employer invokes a contract clause placing A on garden leave for eight weeks. A remains employed and receives full salary on the usual payroll schedule, employer pension contributions continue, and vacation/PTO continues to accrue per policy.

Example B (no garden leave clause). Employer instructs Employee B to stay home and cuts access to systems, but there is no contractual garden leave clause authorizing this. Without an agreed basis, unilateral exclusion can breach the contract. The employee may challenge withheld pay during notice period and seek to enforce notice period pay employer obligations.

If your garden leave overlaps with severance discussions, consider getting an independent contract review. For post-employment terms, see our guidance on severance agreement review and how severance can affect benefits like unemployment in our severance and unemployment benefits guide.

Employer Obligations While an Employee Is on Garden Leave

Employers have clear obligations when placing an employee on garden leave — keep pay and contractual benefits in force and implement restrictions only as contractually permitted.

• Maintain salary and contractual benefits. Employers should continue salary and the benefits promised by the contract or policy during the garden leave period. This expectation and related risks are outlined in EBG’s 2021 update.

• Apply only authorized restrictions. Restrictions must align with the contract; ad hoc limitations that contradict the agreement are risky and may be unenforceable.

• Reasonable availability and communications. If the contract allows it, the employer can require the employee to be reachable for reasonable questions or handover tasks. Without contract support, imposing expanded duties can create disputes.

• Limit access appropriately. Employers may restrict access to premises, IT systems, and clients to protect the business, but this should be consistent with contract wording and standard practices explained in Workable’s overview and EBG’s guidance.

• Avoid unlawful discontinuation of pay. Withholding pay during garden leave is generally unlawful unless there is a legitimate, contract-supported basis (for example, a material breach). For enforcement considerations and risks, see EBG’s 2021 update.

When might garden leave be unlawful? Employers cannot impose garden leave in ways that contradict the contract or applicable law. Red flags include:

• No written garden leave clause, yet the employer purports to impose garden leave anyway. Many HR references stress the need for a contractual basis, including Personio’s HR lexicon entry.

• Stopping salary or benefits without citing a contractual breach or other lawful basis.

• Extending restrictions beyond a reasonably necessary scope or duration without contractual support.

Garden leave often intersects with restrictive covenants. If non-compete or non-solicit issues are in play, consider a specialized review like our non-compete lawyer guide and this deeper look at executive contracts and covenants in the executive employment contract guide. For confidentiality and trade secrets questions, see the trade secret employment lawyer guide.

Garden Leave vs. Severance

Garden leave and severance address different legal and commercial goals — one preserves the employment relationship while the other typically ends it and provides compensation.

Employment status. On garden leave, you remain employed and subject to ongoing contractual duties like confidentiality and loyalty. With severance, employment has ended; the money compensates you for job loss and is often tied to a release of claims.

Purpose. Garden leave protects immediate business interests — client relationships, confidential information, and time to transition responsibilities. Severance aims for a clean break and a negotiated resolution of claims.

Pay and benefits. During garden leave, salary and contractual benefits continue for the notice period. See the analysis of ongoing compensation obligations in EBG’s garden leave provisions guide. With severance, the payment terms depend on the severance agreement; benefits usually end with employment unless the agreement provides otherwise.

Continuing obligations. Garden leave keeps core obligations active, and you usually cannot start a competing job during the notice period. In severance arrangements, any continuing obligations (like non-disparagement or confidentiality) are those explicitly included in the severance document.

Use the appropriate remedy: employers often choose garden leave to preserve contractual restrictions during the notice period; employees may prefer severance if they want immediate freedom from day-to-day contractual obligations. For negotiation pointers, see our severance agreement review guide.

How to Enforce Garden Leave Rights and What to Do If Pay/Benefits Are Withheld

If an employer fails to honor garden leave pay or improperly imposes garden leave, employees have a sequence of practical steps to protect their rights and enforce a garden leave agreement.

1. Contract review. Locate your employment contract, any amendments, the staff handbook, bonus plan documents, and the written garden leave instruction. Look for garden leave clause wording, pay/benefit treatment during notice, duration limits, and disciplinary provisions. Search for phrases like: “During any period of notice…the Employer may require the Employee to serve all or part of the notice period away from the workplace while remaining employed and paid.”

   Action step: highlight each clause that mentions “notice,” “garden leave,” “pay,” “benefits,” “bonus,” “availability,” and “restrictions,” and confirm the contract actually permits garden leave. If you also have severance documents under discussion, review them alongside this guidance and our severance agreement review guide.

2. Gather evidence. Collect pay slips, bank statements showing missed deposits, copies of emails or letters placing you on garden leave, and benefits statements (e.g., pension/retirement, health coverage) reflecting any missed contributions. Keep a timeline with key dates: notice given, garden leave start, each missed pay date, and all HR communications.

   Action step: create a single folder with your contract, notices, emails, and pay records. This will help you demonstrate notice period pay employer obligations and any gaps in pay during notice period.

3. Raise the issue internally. Start informally with your manager or HR to fix errors quickly. You can adapt this short email:

   “I was instructed to be off-site on [date] during my notice period. My understanding is that I should continue to receive my salary and [benefits] while on garden leave. I have not received payment for [period]. Please confirm the payment status and advise next steps by [five business days].”

   If there is no response or the response is unsatisfactory, escalate with a concise written grievance (3–5 sentences) stating the clause that entitles you to pay and benefits, the amounts outstanding, the dates missed, and a reasonable deadline for payment.

   Action step: keep communications professional, factual, and dated. Save copies of all messages related to your request to enforce garden leave agreement terms.

4. Send a formal demand (letter before action). If internal efforts fail, send a brief demand letter identifying the contract provisions, the amounts owed, any interest (if applicable), and a specific payment deadline.

   Template: “This is a formal demand for unpaid salary/benefits during my garden leave from [start date] to [end date] under Section [X] of my employment agreement. Total outstanding is [$amount] for [pay periods] plus any missed [benefit contributions]. If payment is not received by [date], I will consider filing a grievance and pursuing legal remedies for breach of contract and unpaid wages.”

   Action step: send by a trackable method and keep proof of delivery.

5. Seek external help (lawyer/union/tribunal or court). If pay or benefits are still withheld, consult an employment lawyer or union representative. Potential avenues include breach-of-contract and unpaid wages claims in appropriate forums. HR references like Personio’s garden leave overview highlight the need for a contractual basis, and EBG’s 2021 update discusses enforcement scenarios and jurisdictional differences.

   What outcomes look like: arrears of pay, interest, damages for breach of contract, and, where appropriate, a declaration that garden leave was imposed unlawfully. Results vary; get advice tailored to your jurisdiction and contract.

Evidence checklist (copy and use):

• Employment contract and any amendments

• Written notice of resignation/termination

• Written garden leave instruction (emails/letters)

• Payslips and bank statements for the relevant period

• Pension/benefit statements showing any missing contributions

• Timeline of communications with HR/manager

Short grievance template (3–5 lines):
“I am on garden leave effective [date] under Section [X] of my contract. I have not received salary/benefits for [pay periods]. The contract requires continued pay and benefits during the notice period. Please confirm payment by [date] or explain a lawful reason for withholding, so I can avoid taking further action.”

Short demand letter template (4–6 lines):
“This letter demands payment of [$amount] in unpaid notice-period salary and [benefits] for [dates] under Section [X] of my employment agreement. If payment is not received by [deadline], I will pursue available legal remedies for breach of contract and unpaid wages, including interest where applicable. Please provide written confirmation of payment arrangements.”

Reminder: Jurisdictional differences matter. Always confirm local requirements and seek tailored advice. See Personio’s contractual guidance and EBG’s jurisdictional update for comparative context.

If your garden leave is followed by separation, be mindful of final wage rules. For timing and payout issues, review our resource on final paycheck laws. If you later apply for benefits, consult our unemployment denial appeal guide to understand eligibility issues that can arise with severance or delayed final pay.

Disclaimer: The templates and examples in this article are general information and not legal advice. Consult a qualified employment lawyer for guidance on your specific facts and jurisdiction.

Practical Examples & Sample Garden Leave Clause

Example clause (for illustration only): “During any period of notice given by either party, the Employer may require the Employee to remain away from the Employer’s premises and to refrain from performing any duties for the Employer while remaining employed and entitled to receive salary and contractual benefits for the notice period.” For drafting considerations and alternatives, see EBG’s analysis of garden leave provisions. This is a template example only. Contract wording may vary; seek legal advice before relying on any clause.

Scenario 1 (valid clause, proper use). The company invokes a written garden leave clause after the employee resigns with a 12-week notice period. The employee receives regular salary and contractual benefits, accrues PTO per policy, and is blocked from systems and client contact. Because employment continues, the employee cannot start at a competitor until the notice period ends.

Scenario 2 (no clause, unlawful imposition). The employer excludes an employee from work and cuts off access but has no contract clause authorizing garden leave. Salary is suspended without citing a lawful reason. The employee may have claims for breach of contract and unpaid wages, and can use the enforcement steps above to demand payment and challenge the garden leave.

If these scenarios involve non-compete or non-solicit issues beyond the notice period, consider a focused review of restrictive covenants using our non-compete lawyer guide and the executive employment contract resource.

Conclusion

Garden leave rights keep you employed and, in most cases, entitled to pay during notice period and to contractual benefits while you are kept away from daily duties. Employers must have a contractual basis to impose garden leave and must meet notice period pay employer obligations unless a lawful exception applies. If pay or benefits are withheld, document everything, follow the step-by-step escalation process, and seek professional advice tailored to your contract and jurisdiction.

Need help now? Get a free and instant case evaluation by US Employment Lawyers. See if your case qualifies within 30-seconds at https://usemploymentlawyers.com.

FAQ

Can an employer place me on garden leave without a written clause?

Usually not — garden leave typically requires a contractual basis; imposing it unilaterally risks breach of contract. See HR guidance emphasizing contractual support in Personio’s garden leave overview.

Am I still paid during garden leave?

In general, yes. Salary and contractual benefits should continue during the notice period unless the contract says otherwise or there is a lawful reason to stop pay, as summarized by Workable’s definition and discussed in EBG’s analysis.

Can I start a new job while on garden leave?

Usually not with a competitor during the notice period because you remain employed and bound by contractual duties like confidentiality and loyalty. These ongoing obligations are highlighted in Workable’s discussion of garden leave.

What if my employer refuses to pay me during garden leave?

Follow the enforcement steps: review your contract, raise the issue with HR, submit a written grievance, send a formal demand, and seek legal help (tribunal or court where applicable). See Personio’s contractual guidance and enforcement context in EBG’s 2021 update.

Is garden leave the same as severance?

No. Garden leave keeps you employed and paid during the notice period; severance is a post-employment payment and typically ends the employment relationship. For a legal comparison, see EBG’s update on garden leave provisions.