Garden leave is when your employer tells you not to work during all or part of your notice period but continues paying you.
You remain employed during garden leave. Your salary continues, and your benefits and other compensation may also continue depending on your contract and the terms of the leave.
Samfiru Tumarkin LLP helps non-unionized employees in Ontario, Alberta and British Columbia understand garden leave, working notice, severance and termination rights.
⚠️ Put on garden leave after being told your job is ending?
Do not assume the arrangement is fair just because you are still being paid. Review the notice period, benefits, bonus, commissions and any restrictions before agreeing to the terms.
Reviewed by: Lior Samfiru, Employment Lawyer and National Co-Managing Partner
On This Page:
- 1. What Is Garden Leave?
- 2. Is Garden Leave Legal?
- 3. Pay & Benefits
- 4. Starting a New Job
- 5. Garden Leave vs. Working Notice
- 6. Garden Leave & Severance
- 7. Common Questions
What Is Garden Leave?
Garden leave means you remain employed and paid, but your employer tells you not to perform your normal work.
Employers use garden leave when they want an employee away from the workplace during a notice period, especially where the employee has access to clients, confidential information or commercially sensitive work.
During garden leave, you may be told not to:
- Attend the workplace
- Contact clients
- Contact coworkers about business matters
- Access company systems
- Perform normal duties
💡 Garden leave is still employment.
You are not yet fully separated from the company simply because you have stopped performing your usual work.
Is Garden Leave Legal in Canada?
Yes. Employers can use garden leave as part of a notice period or employment arrangement.
The key issue is whether the employer continues to meet its obligations while you remain employed.
That can include:
- Salary
- Benefits
- Bonus or commission rights
- Pension or other compensation
- Contractual obligations during the notice period
If your employer removes compensation or imposes new restrictions during garden leave, the arrangement should be reviewed.
Do You Get Paid During Garden Leave?
Yes. Garden leave normally means you continue receiving your regular pay during the notice period.
Your employer may also need to continue other parts of your compensation, including benefits, bonus eligibility, commissions or pension contributions.
Can your employer stop your bonus or commissions?
It depends on your employment contract, compensation plan and the wording of the garden leave arrangement.
Do not assume that being away from active work automatically removes bonus or commission rights.
⚠️ Your salary continued but your bonus, commissions or benefits stopped?
That can materially change the value of the notice period. Have the full compensation package reviewed.
Can You Start a New Job While on Garden Leave?
Not automatically. You are still employed during garden leave, so your existing employment obligations can continue.
Your contract or garden leave agreement may restrict you from:
- Starting work for a competitor
- Soliciting clients
- Using confidential information
- Taking another full-time job before the notice period ends
Read the agreement carefully before accepting another position.
You can also review our guidance on non-compete agreements and other restrictive covenants.
Garden Leave vs. Working Notice
Garden leave and working notice are both forms of notice, but they work differently.
| Garden Leave | Working Notice |
|---|---|
| You remain employed but do not perform normal work | You remain employed and continue working |
| Salary continues | Salary continues |
| Access to clients or systems may be restricted | Normal duties usually continue |
| Employment ends at the end of the notice period | Employment ends at the end of the notice period |
Learn more about working notice.
Does Garden Leave Count Toward Severance?
Yes. A period of paid garden leave can count toward the notice your employer provides before termination.
For example, if your employer gives you several months of garden leave before your employment officially ends, that period may form part of the notice package.
The important question is whether the total notice and compensation meet your legal entitlement.
Can you still be owed more severance after garden leave?
Yes. If the garden leave period is shorter than the notice you are owed, you may still be entitled to additional compensation.
Your severance can be as much as 24 months’ pay and depends on factors such as:
- Age
- Length of service
- Position
- Compensation
- Availability of comparable employment
- Employment contract
Read our guide to severance pay in Canada or use the Severance Pay Calculator.
⚠️ Asked to sign a release at the end of garden leave?
Do not assume the notice period fully satisfies your severance entitlement. Review the package before signing away your right to seek more compensation.
Garden Leave in Canada: FAQs
What does garden leave mean?
It means you remain employed and paid but are told not to perform your normal work during part or all of your notice period.
Why is it called garden leave?
The term reflects the idea that the employee is still employed but has no work to perform, leaving them free to spend the time at home.
Is garden leave the same as severance pay?
No. Garden leave is a period of continued employment. Severance or pay in lieu of notice is compensation connected to the termination of employment.
Can you be fired while on garden leave?
Garden leave often happens because the employer has already given notice that the employment relationship will end on a future date. Serious misconduct during the notice period can still create employment issues.
Can you refuse garden leave?
Your ability to object depends on your contract and the terms the employer imposes. If the arrangement changes your compensation or other important employment terms, get legal advice before agreeing.
Can your employer contact you during garden leave?
Yes. You remain employed and may still have reasonable obligations to cooperate with the employer, depending on the agreement.
Do benefits continue during garden leave?
Benefits can continue because you remain employed. Review the specific terms of your plan and the garden leave agreement.
Can garden leave include a non-compete?
Your existing contractual restrictions can continue during garden leave. Separate restrictions that apply after employment ends depend on the contract and applicable law.
What if you’re unionized?
Your collective agreement governs notice, work assignments and termination rights. Contact your union. Samfiru Tumarkin LLP’s employment law team does not assist with unionized workplace disputes.
Put on Garden Leave? Check Your Severance.
Garden leave can form part of your notice period, but that does not automatically mean your employer has provided everything you are owed.
If your employer put you on garden leave, changed your compensation or asked you to sign a release, get advice before agreeing to the terms.
The employment lawyers at Samfiru Tumarkin LLP help non-unionized employees in Ontario, Alberta and British Columbia understand their termination and severance rights.
Before you sign, always check first.
➡️ Review Your Severance or call 1-855-821-5900.