New Delhi, July 31 -- As the non-compete clause fails to protect senior executives from poaching and worthy replacements remain elusive, Indian companies have found a deterrent to keep senior executives tethered: extended garden leaves.

Clients are inserting a garden leave clause in new contracts and also extending the duration of such a period that requires an executive who has quit to be on the rolls but without any responsibility, according to law firms and human resource consultants. Investment banks, consultants, startups and law firms alike now include such conditions.

"When we talk about negotiating terms, everyone is constantly talking about non-competes. But let's be very honest-non-competes are largely not enforceable worldwid...