Income & Employment Guides UK — Maximise Your Earnings
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 |
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