UK Employment Rights: Redundancy, Leave, Contracts and Workplace Protections

Garden Leave Explained UK — What It Is, Your Rights & Pay

What garden leave is, how it works, your rights during garden leave, pay, restrictive covenants, and what you can and can't do while on garden leave.

Salary and income data is based on ONS and other official UK statistical sources. Figures are averages and may not reflect your individual circumstances.

If your employer asks you to serve your notice period at home on full pay, that’s garden leave. Here’s what you need to know.

Read more: See our Employment Rights guide for a complete overview of this topic.

What Is Garden Leave?

FeatureDetail
DefinitionYou’re told not to work during your notice period but remain employed on full pay
PurposeProtects the employer from you taking clients, data, or knowledge to a competitor
DurationUsually your contractual notice period (weeks to months)
PayFull salary and benefits throughout
Employment statusYou remain an employee — bound by your contract
Common forSenior staff, sales roles, anyone joining a competitor, roles with confidential access

When Employers Use Garden Leave

SituationWhy
You’re leaving for a competitorPrevents you sharing confidential information or approaching clients
You have access to sensitive dataTrade secrets, pricing, client lists, strategy documents
You’re in a client-facing roleStops you transferring client relationships before you leave
You’re a senior employeeKnowledge of future plans, restructuring, M&A activity
RedundancySometimes during a notice period when the role no longer exists
Mutual agreement to leavePart of a negotiated exit

Your Rights During Garden Leave

RightDetail
Full salaryPaid as normal, including any contractual allowances
BenefitsPension contributions, private healthcare, company car — continue
Holiday accrualHoliday continues to accrue (employer may require you to take outstanding leave)
BonusIf due during garden leave, should be paid unless contract says otherwise
Statutory rightsAll employment rights remain (unfair dismissal, discrimination, etc.)
ReferenceYour employment continues — future employers can verify you’re still employed

Your Obligations During Garden Leave

ObligationDetail
Not to work for another employerYou’re still exclusively employed — cannot start a new job
ConfidentialityMust not share confidential information
Not to contact colleagues/clientsIf instructed not to (check your contract)
Return company propertyMay be asked to return laptop, phone, access cards, documents
Available for queriesYour employer may require you to be available to answer questions
Not to delete dataDon’t delete emails, files, or records on company systems
Restrictive covenants still applyNon-compete, non-solicitation clauses remain in force

What You CAN Do on Garden Leave

ActivityAllowed?
Stay at home / go on holidayYes
Sign a contract with your new employerYes (but can’t start working for them)
Attend interviewsYes (you’re allowed to prepare for your next role)
Volunteer or do unpaid workGenerally yes (as long as it’s not for a competitor)
Complete personal projectsYes
Study or take coursesYes
Exercise, travel, relaxYes — it’s called garden leave for a reason

What You CAN’T Do

ActivityWhy not
Start your new jobBreach of employment contract
Work for a competitor in any capacityBreach of exclusivity
Contact current clients or colleagues about your moveBreach of restrictive covenants
Share confidential informationBreach of confidentiality
Set up a competing businessBreach of implied duty of fidelity
Badmouth your employer publiclyRisk of breach of non-derogatory obligations

Garden Leave and Restrictive Covenants

FeatureDetail
What are restrictive covenants?Post-termination clauses limiting what you can do after leaving (non-compete, non-solicitation, non-dealing)
Impact of garden leaveCourts may reduce the enforceability period of restrictive covenants by the length of garden leave
Example6-month non-compete + 3 months garden leave = court may enforce only 3 months of non-compete after garden leave ends
Why?Garden leave already achieves the purpose of the restriction — keeping you away from clients and competitors
ImportantThis isn’t automatic — depends on the contract wording and court discretion

Garden Leave vs Other Notice Arrangements

ArrangementKey difference
Garden leaveYou stay employed, paid in full, but don’t attend work
Working your noticeYou continue working normally during the notice period
Payment in lieu of notice (PILON)Employment ends immediately, you’re paid a lump sum for the notice period
Immediate terminationEmployment ends immediately with no pay (only for gross misconduct)

PILON vs Garden Leave

FeatureGarden leavePILON
Employment continues?Yes — still employedNo — employment ends immediately
Access to benefitsYesNo (they end with employment)
Restrictive covenantsStart running after garden leave endsStart running immediately
Holiday accrualYesNo
BIKContinuesCeases

Negotiating Garden Leave

SituationNegotiation point
You want to start your new role soonerNegotiate a shorter notice period or ask for PILON instead
Employer wants to extend restrictionsArgue that garden leave already restricts you — further covenants should be shorter
Outstanding bonusEnsure any bonus due is paid during or at the end of garden leave
Company propertyNegotiate keeping your phone number, laptop data, etc.
HolidayClarify whether you must take outstanding holiday during garden leave
Settlement agreementGarden leave may be part of a broader exit package negotiation

Sources

  1. ONS — Annual Survey of Hours and Earnings