Garden leave is a transitionary period for employees who have given or been given notice of termination, but are still on the payroll for a certain length of time or until their last day of employment. Garden leave is designed to provide some protection for businesses from the possible use of proprietary skills and knowledge from an employee being transferred to a prospective employer, competitor, or even starting up their own enterprise. It also serves to protect the work environment from possible sabotage from the departing employee.

Garden leave is something of a common courtesy, as it allows for a less abrupt transition for an employee. At the same time, it also imposes restrictions on what the employee may do during the garden leave. Typically, the employee remains on the payroll, but cannot set foot in the office or communicate with coworkers. Access to proprietary documents and information is removed, as well as access to any confidential information that may become a problem if allowed to be distributed.

The concept of garden leave originated in the United Kingdom, Australia, and New Zealand, but it has recently been put in place in Massachusetts as well. This concept is designed to ensure that the employer does not suffer any damage due to the activities of an outgoing employee. As such, it is typically used for employees who may have access to specialised knowledge or valuable proprietary information.

For employees, the best thing to do is to proactively offer their employer a garden leave, so that any transition is done in a professional and timely manner. In general, employers appreciate employees who remove potential difficulties. Garden leave can also help protect employees who wish to remain on good terms with their former employer and not be seen as taking advantage of it.

All in all, garden leave is a useful transition tool to protect both employers and employees. It is a way to transition out of a company securely and on good terms, while being given the time to find other employment, or to clandestinely plan a move to a competitor. It is a way to ensure that the business will not be impacted by the actions of a departing employee.