Garden Leave Red Flags: Paid Time Off That Isn't Really Off

Updated April 28, 2026 2 min read

TL;DR

Garden leave sounds generous — the company pays you to not work after you leave. Sometimes it is. Sometimes it's a non-compete dressed up in severance clothing.

Good Garden Leave

30-90 days, full pay and benefits, defined end date, your only restriction. When it ends, you're free.

Bad Garden Leave

Employer extends unilaterally. Pay drops to base only — no bonus, no equity vesting. Or it stacks on top of a separate non-compete period, so you're restricted for garden leave plus another 12 months. That's extended restraint without compensation.

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Frequently asked questions

Can I take a non-competing job during garden leave?

Usually yes if the contract doesn't restrict outside work. Always confirm in writing.

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