"Garden Leave" is a paid non-compete time (often a year) used in the financial industry when someone switched jobs. The prior employer invokes it at their option.
I wasn't aware that "paid non-compete" is a thing, thanks for clarifying it. Next time when I see a non-compete in a contract (which is usual for developers), instead of negotiating it out, I'll try to negotiate something like this. What do these agreements usually look like?
The employer has the option to pay you your salary (not bonus, which is a big part of your income!) to not work at all instead of you going to a competitor.
I think that the comp part is necessary to make it enforceable at all.
That's not always correct. It can be shorter (3 months are common in London) and is often a fixed part of your contract (notice period). If both agree you can shorten it but it's not just invoked at the discretion of your employer.
