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.
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4 min read
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 |
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