English Law/Patents Human Resources

The term is from a standard employment contract with a company managing director, e.g.

19. Garden Leave
19.1 At any time after notice has been given to terminate your employment pursuant to paragraph 15.1, 15.2 or 15.3 above or if You resign without giving due notice and the Company does not accept your resignation, the Company may require You to comply with any or all of the provisions in paragraphs 19.2 and 19.3 below, for a period (the "Period of Garden Leave") not to exceed the lesser of (a) Twelve (12) months or (b) 50% of the un-expired portion of the Fixed Term.

19.3 At the beginning of the Period of Garden Leave, or at any time during it, the Company may require You:

19.3.1 to undertake such duties which must be consistent with your job title (which may be different to those performed by You before the commencement of any Period of Garden Leave) as the Company may advise;
19.3.2 announce to employees, suppliers and contacts and any other person who may have a legitimate interest in receiving such information that You have been given notice of termination or have resigned (as the case may be);
19.3.3 instruct You not to communicate orally or in writing with suppliers, customers, employees, agents or representatives of the Company or any Group Company until your employment hereunder has terminated.
19.4 During any Period of Garden Leave, You shall remain an employee of the Company and will be entitled to receive salary and all contractual benefits in accordance with the terms of this Agreement, save for during any period of Garden Leave pursuant to this paragraph 19 You will not be entitled to be considered for any award of any Discretionary Bonus pursuant to paragraph 5.5 above or to any award of stock options or holiday. Any untaken holiday entitlement accrued or likely to accrue up to the Termination Date should be taken during the leave period. You agree to notify Warner of any day or days during the Garden Leave period when You will be unavailable due to holiday and will endeavour to agree convenient holiday dates in advance with the Board, but You must not perform any duties for any other person, firm or organisation, whether as an employee, independent contractor or otherwise, unless You have first obtained Warner’s written consent. During any Period of Garden Leave, You shall (for the avoidance of doubt) be bound by the duties of fidelity and good faith and by paragraphs 6, 7 and 18.
19.5 At the end of any Period of Garden Leave, the Company may, at its sole discretion, for any un-expired portion of the Fixed Term period, pay You either:
19.5.1 salary and the cash equivalent of any benefits You are actually receiving at the commencement date of any Garden Leave Period, but not including stock options and/or discretionary bonus given by the Company less any deductions the Company is required by law to make) in lieu; or
19.5.2 salary in lieu and keep You within any benefit programmes You are actually receiving at the commencement date of any Garden Leave Period (other than the Stock Option plan or any bonus plan).