What Employers Should Know About Garden Leave

Garden leave can be a sensible way to protect your business when an employee is leaving, especially if they have access to clients, confidential information or commercially sensitive plans. In simple terms, it means the employee stays employed and continues to receive pay and contractual benefits during their notice period, but they do not come into work or carry out their usual duties. For UK employers, the value of garden leave lies in managing risk carefully while keeping the departure professional, lawful and well organised.

For many small and medium-sized businesses, the challenge is knowing when garden leave is appropriate, how it works in practice, and what an employee’s rights look like during the process. This guide brings those points together in one place and adds practical guidance on how to decide whether garden leave is the right option for a particular role, rather than treating it as a default response every time someone resigns.

Key takeaways

• Garden leave is when an employee remains employed during their notice period but is told not to work for some or all of that period.
• The employee must usually continue to receive normal pay and contractual benefits while on garden leave.
• It is commonly used to protect confidential information, customer relationships and team stability when someone is leaving.
• The safest approach is to have a clear garden leave clause in the employment contract, because imposing it without a contractual right or agreement can create a breach of contract risk.
• Garden leave usually lasts for the length of the employee’s notice period, although they may work part of their notice and spend the rest on garden leave.
• Employees remain bound by their contract during garden leave, which usually means they cannot start a new job until their employment ends unless you agree otherwise.
• Garden leave is not automatically a bad thing for employees; while it can feel restrictive, it also gives them paid time away from the workplace and can reduce tension during a departure.

In this guide

In this guide, we explain what garden leave is, how garden leave works, when an employee might take garden leave, how long it can last, and what employee rights usually apply in the UK. It also covers whether an employee can request garden leave, whether it is necessarily a negative outcome for employees, and what employers should do before placing someone on leave. Finally, it looks at practical steps for businesses, including a useful decision-making framework that helps employers judge when garden leave is proportionate and when another route may be better.

What is garden leave?

Garden leave, sometimes called gardening leave, is when an employer tells an employee not to work during part or all of their notice period. The employee remains employed during that period, which means the employment contract is still in force and the usual obligations continue to apply unless the contract says otherwise.

In practice, that usually means the employee stays away from the workplace, stops doing their day-to-day role, and may be restricted from contacting clients, colleagues or suppliers. At the same time, the employer normally continues paying salary and contractual benefits in the usual way.

How does garden leave work?

Garden leave works within the employee’s notice period, not after it. Once notice has been given, whether by the employee or the employer, the business may decide that it is better for the employee not to attend work while the notice runs its course.

The key point is that the employment relationship continues until the agreed termination date. That means the employee is still expected to comply with contractual duties such as confidentiality, loyalty and any instruction to remain available for reasonable handover questions. It also means they usually cannot begin working for a new employer during that period because they are still employed by you.

When might you use garden leave?

Garden leave is usually considered where a departing employee could pose a genuine business risk if they continued working through their notice period. That often includes senior leaders, sales staff, account managers, technical specialists, or anyone with access to sensitive information, pricing, strategy, customer lists or key supplier relationships.

A business may also use garden leave if there has been a breakdown in trust, if the employee is moving to a competitor, or if it wants to avoid disruption among clients or colleagues while keeping the exit orderly. For SMEs in particular, the impact of one well-connected employee leaving can be significant, which is why the decision often comes down to risk, not job title alone.

When might an employee get garden leave?

An employee might get garden leave after they resign, after they are dismissed with notice, or in some redundancy situations where the business does not want them to continue working during their notice period. It is commonly used where there is a concern about confidential information or business relationships, but it can also be used simply because it is the most practical way to manage an exit.

In other words, garden leave is not limited to one type of departure. What matters more is whether the contract allows it and whether using it is reasonable in the circumstances.

Employee rights during garden leave in the UK

One of the most important points for employers is that an employee on garden leave is still an employee. As a result, they should usually continue to receive full salary and contractual benefits throughout the notice period. Depending on the contract, some payments linked to active performance, such as commission arrangements, can be more complicated, so the wording of the contract matters.

Employees may also continue to accrue holiday while they are on garden leave because their employment has not yet ended. If they want to take holiday during that time, approval may still be required, and employers should manage that consistently and in line with the contract and normal leave rules.

Just as employers have obligations, employees remain bound by their contractual duties. They may be required not to contact clients or colleagues, not to use company equipment, to return business property, and to stay available to answer questions or support a handover where reasonably requested.

How long is garden leave?

Garden leave usually lasts for as long as the employee’s notice period lasts. If the employee has a one-month notice period, garden leave may last one month; if they have a six-month notice period, it could last six months.

That said, the full notice period does not always have to be spent on garden leave. An employee may work some of their notice and then be placed on garden leave for the remaining period, depending on what the employer needs and what the contract allows. From a practical point of view, employers should think carefully about proportionality, because the longer the period, the more important it is to show that the restriction is justified by a real business need.

Can an employee request garden leave?

Yes, an employee can ask to be placed on garden leave. This might happen after they resign, after they are given notice of dismissal, or where both sides want a cleaner and less disruptive exit.

However, the employer does not have to agree just because the employee asks. Garden leave is a management decision that should be based on contractual rights, business risk and practicality, so some requests will be accepted and others will not.

Is garden leave a bad thing for employees?

Not necessarily. Some employees may see it as frustrating because they cannot begin their next role straight away and may feel disconnected from colleagues or the work they are leaving behind. Others may view it more positively because they continue to be paid, keep their benefits, and have time away from the workplace while still being protected by their contract.

For employers, this matters because tone and communication can shape how garden leave is received. If it is handled calmly, explained clearly and applied consistently, it is more likely to be seen as a practical business measure rather than a punitive step.

Do you need a garden leave clause?

The safest position is to include an express garden leave clause in the employment contract as it helps to avoid the risk of a breach of contract risk.

A well-drafted clause should normally cover what restrictions apply, and whether they must stay available to help with handover matters. Clear drafting reduces ambiguity and makes it easier for the business to manage the exit fairly and consistently.

A practical framework for SMEs

A useful way to add value beyond the basics is to treat garden leave as a three-part decision: risk, reason and reach. First, consider the risk: does the employee currently have access to information, customers, pricing, strategy or staff relationships that could harm the business if misused? Second, consider the reason: are you using garden leave to protect a genuine business interest, or simply because the departure feels uncomfortable?

Third, consider the reach of the restriction. Ask whether the length of notice, the level of contact restrictions and the operational impact are proportionate for this individual role. This kind of structured assessment helps small businesses make more consistent decisions, reduces the chance of overreacting, and supports a more defensible position if the decision is later challenged.

Common employer mistakes to avoid

One common mistake is assuming garden leave can be used whenever someone resigns. In reality, it works best where there is a clear contractual basis and a real need to protect the business.

Another mistake is forgetting that the employee remains employed throughout the period. That means pay and benefits generally continue, and the business should communicate expectations properly rather than treating the individual as though they have already left. It is also important not to overlook practical offboarding steps such as recovering equipment, limiting systems access and documenting what the employee can and cannot do during leave.

Garden leave and other exit options

Garden leave is only one way to manage the end of employment. Another option is payment in lieu of notice, often called PILON, where the employee leaves immediately and is paid instead of working their notice period. The key difference is that garden leave keeps the employee employed until the notice period ends, whereas PILON usually brings the contract to an end straight away.

For employers, the choice depends on what matters most. If you need continued contractual control and want to keep the employee away from customers, systems or sensitive material, garden leave may be the better route. If a clean and immediate break is more appropriate, PILON may be worth considering where the contract allows it.

Garden leave can be a practical and effective way to protect your business while handling an employee departure professionally. The key is to use it thoughtfully, make sure your contracts support it, and communicate clearly so that both the business and the employee understand what happens during the notice period.

For businesses that want clear, practical guidance on garden leave, employment contracts and employee exits, Norton Loxley can help you put the right protections in place and support you through the process with confidence. If you have any questions or need some additional HR support, please get in touch with the team.

FAQs

What is garden leave?

Garden leave is when an employee stays employed during their notice period but is instructed not to work for some or all of that time. They continue to receive pay and contractual benefits while remaining bound by their employment contract.

How does garden leave work in practice?

It operates during the employee’s notice period. The employee usually stays away from work, may have restrictions on contact with clients and colleagues, and may need to remain available for handover support or reasonable questions.

When might you get garden leave?

An employee may be placed on garden leave after resignation, dismissal with notice, or in some redundancy situations where the employer wants to protect confidential information, customer relationships or team stability.

What rights does an employee have on garden leave in the UK?

They usually continue to receive normal salary and contractual benefits because they remain employed throughout the notice period. They may also continue accruing holiday, although normal approval processes may still apply for taking leave during that period.

How long is garden leave?

It generally lasts for the employee’s contractual notice period, although some employees may work part of that notice and spend the rest on garden leave.

Can an employee request garden leave?

Yes, an employee can ask for it, but the employer does not have to agree. Whether it is used should depend on the contract, the circumstances of the departure and the level of business risk involved.

Can an employee start a new job while on garden leave?

Usually no, because they remain employed until their notice period ends. Starting another job during that period could put them in breach of contract unless the employer agrees otherwise.

Is garden leave a bad thing for employees?

Not always. It can feel restrictive because the employee may not be able to start their next job straight away, but it can also provide paid time away from the workplace while preserving salary and benefits.

Can you put an employee on garden leave without a clause?

That can be risky. The safer approach is to have an express clause in the contract or obtain the employee’s agreement, because imposing garden leave without either may lead to breach of contract issues.