Incomes

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.

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.

What Is Garden Leave?

Feature Detail
Definition You’re told not to work during your notice period but remain employed on full pay
Purpose Protects the employer from you taking clients, data, or knowledge to a competitor
Duration Usually your contractual notice period (weeks to months)
Pay Full salary and benefits throughout
Employment status You remain an employee — bound by your contract
Common for Senior staff, sales roles, anyone joining a competitor, roles with confidential access

When Employers Use Garden Leave

Situation Why
You’re leaving for a competitor Prevents you sharing confidential information or approaching clients
You have access to sensitive data Trade secrets, pricing, client lists, strategy documents
You’re in a client-facing role Stops you transferring client relationships before you leave
You’re a senior employee Knowledge of future plans, restructuring, M&A activity
Redundancy Sometimes during a notice period when the role no longer exists
Mutual agreement to leave Part of a negotiated exit

Your Rights During Garden Leave

Right Detail
Full salary Paid as normal, including any contractual allowances
Benefits Pension contributions, private healthcare, company car — continue
Holiday accrual Holiday continues to accrue (employer may require you to take outstanding leave)
Bonus If due during garden leave, should be paid unless contract says otherwise
Statutory rights All employment rights remain (unfair dismissal, discrimination, etc.)
Reference Your employment continues — future employers can verify you’re still employed

Your Obligations During Garden Leave

Obligation Detail
Not to work for another employer You’re still exclusively employed — cannot start a new job
Confidentiality Must not share confidential information
Not to contact colleagues/clients If instructed not to (check your contract)
Return company property May be asked to return laptop, phone, access cards, documents
Available for queries Your employer may require you to be available to answer questions
Not to delete data Don’t delete emails, files, or records on company systems
Restrictive covenants still apply Non-compete, non-solicitation clauses remain in force

What You CAN Do on Garden Leave

Activity Allowed?
Stay at home / go on holiday Yes
Sign a contract with your new employer Yes (but can’t start working for them)
Attend interviews Yes (you’re allowed to prepare for your next role)
Volunteer or do unpaid work Generally yes (as long as it’s not for a competitor)
Complete personal projects Yes
Study or take courses Yes
Exercise, travel, relax Yes — it’s called garden leave for a reason

What You CAN’T Do

Activity Why not
Start your new job Breach of employment contract
Work for a competitor in any capacity Breach of exclusivity
Contact current clients or colleagues about your move Breach of restrictive covenants
Share confidential information Breach of confidentiality
Set up a competing business Breach of implied duty of fidelity
Badmouth your employer publicly Risk of breach of non-derogatory obligations

Garden Leave and Restrictive Covenants

Feature Detail
What are restrictive covenants? Post-termination clauses limiting what you can do after leaving (non-compete, non-solicitation, non-dealing)
Impact of garden leave Courts may reduce the enforceability period of restrictive covenants by the length of garden leave
Example 6-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
Important This isn’t automatic — depends on the contract wording and court discretion

Garden Leave vs Other Notice Arrangements

Arrangement Key difference
Garden leave You stay employed, paid in full, but don’t attend work
Working your notice You 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 termination Employment ends immediately with no pay (only for gross misconduct)

PILON vs Garden Leave

Feature Garden leave PILON
Employment continues? Yes — still employed No — employment ends immediately
Access to benefits Yes No (they end with employment)
Restrictive covenants Start running after garden leave ends Start running immediately
Holiday accrual Yes No
BIK Continues Ceases

Negotiating Garden Leave

Situation Negotiation point
You want to start your new role sooner Negotiate a shorter notice period or ask for PILON instead
Employer wants to extend restrictions Argue that garden leave already restricts you — further covenants should be shorter
Outstanding bonus Ensure any bonus due is paid during or at the end of garden leave
Company property Negotiate keeping your phone number, laptop data, etc.
Holiday Clarify whether you must take outstanding holiday during garden leave
Settlement agreement Garden leave may be part of a broader exit package negotiation