What Is Garden Leave? A Guide for Employers

Typically, when an employee leaves a company, they’ll usually work their notice period. However, there may be circumstances when you place them on garden leave, sometimes referred to as gardening leave. This is when an employee is leaving a job, either by way of resignation or termination of contract, and is instructed not to attend the workplace or perform any duties, but remains a fully paid employee of the business for the full period of Garden Leave, bound by the terms of the contract of employment. This can help to keep the employee away from the business but also prevent them from starting work for a competitor straight away.

In this blog, we will be exploring exactly what garden leave or gardening leave is, its benefits and some areas to consider when enforcing it.

• • What is Garden Leave?
  • Pros and Cons for Employers
  • Pros and Cons for Employees
  • Redundancies and Resignations
  • Employee Rights & Employer Obligations
  • Employee Activities & Restrictions During Garden Leave
  • Legal Implications of Breach of Contract
  • How Employers and Employees Can Challenge Garden Leave
  • How to Implement Garden Leave
  • Company Culture
  • UK Employment Law
  • FAQs

What is Garden Leave?

Garden Leave (sometimes called Gardening Leave) refers to a period when an employee who is leaving a company, whether through resignation or termination, is instructed not to attend the workplace or perform their normal duties. During this time, the employee remains on the company’s payroll as a fully paid employee and continues to be bound by the terms of their employment contract.

The term “gardening leave” is thought to have originated from the idea that, since employees are not permitted to work, they might spend their time at home, perhaps even gardening.

Garden Leave is usually used for strategic and protective reasons. Employers may choose to place an employee on Garden Leave to:

• • Prevent access to confidential or commercially sensitive information.

  • Protect important relationships with employees, customers, or suppliers.

  • Allow a successor to take over their role without interference.

  • Stop the departing employee from joining a competitor or starting new employment until their notice period has ended.

While on Garden Leave, the employee remains employed and continues to receive their salary and benefits, but is generally not permitted to begin work elsewhere or engage in activities that could conflict with their obligations to the current employer.

The employee remains bound by all terms of their employment contract, including confidentiality clauses and any post-termination restrictions such as non-compete, non-solicitation, or non-dealing covenants.

To lawfully place an employee on Garden Leave, the employer must have an express contractual clause allowing this. Without such a clause, enforcing Garden Leave could amount to a breach of contract, as it may prevent the employee from fulfilling their normal duties or earning commission during their notice period.

Redundancies and Resignations

Where an employee has been dismissed with notice, which is often the case with redundancies, the employer may use the garden leave clause, particularly where they are concerned that should the employee be required to work that notice period, it would have a detrimental effect on the business.

Employees are contractually obligated to work out their notice period if they resign; however, in cases where employees refuse to work their notice period, the employer may decide to place them on garden leave. See our blog for more information on this. Garden leave may also be used when senior employees – who have greater access to sensitive and strategic information, and generally have longer notice periods – resign and want to accept a position with a new employer/competitor, in order to protect business interests.

Employee Rights & Employer Obligations

The employee will continue to receive their salary for the period of Garden Leave.

Contractual benefits such as holiday entitlement, private medical, and company car (for private and business use) will also need to remain in place throughout the period of Garden Leave, until the actual termination date.

Employees must also continue to be entitled to any statutory benefits such as statutory sick leave, maternity leave and pay, parental leave and pay, and statutory redundancy. They must also continue to have protection against discrimination.

Employee Activities & Restrictions During Garden Leave

During gardening leave, both parties remain bound by the terms of the employment contract, but the employee is not required to complete any work, attend work, or communicate with colleagues and clients; although the employer can request the employee to provide a handover, or answer queries or even return to the workplace during garden leave and therefore the employee needs to remain available. The employee should continue to adhere to any confidentiality regulations set out in the employee contract.

As such, employees will not usually be allowed to start working with a new employer, although they may be able to negotiate to do voluntary work; and employees should inform their employer if they intend to take a holiday or leave the country while on garden leave.

Legal Implications of Breach of Contract

Whilst a clause in the contract is not a legal requirement, placing someone on Garden Leave without an express term may be considered a breach of contract. Care must be taken to consider the impact of placing someone on Garden Leave, particularly where part of the employee’s remuneration is dependent on their work, such as commission and bonuses.

A breach of employment contract can occur from either the employee or the employer when there is a failure to adhere to the agreed terms. Whilst legal proceedings are an option for breach of contract, this should generally be considered as a last resort, after any internal action such as mediation.

For example, if an employee is refusing to work their notice period, you could try to claim damages such as financial losses (i.e. your direct and indirect or consequential loss) due to the breach of contract through the civil courts.

Similarly, if an employee breaches their restrictive covenants by accepting a job with a competitor or establishing a similar business to yours, you could apply to the courts for an injunction to stop them.

Where a breach of the employment contract has occurred on your part, either express or implied terms, and the employee can prove they have suffered financial loss, then they can sue and have damages awarded. The maximum compensation an employment tribunal can provide is capped at £25,000. A breach of contract could also result in damage to your business’s reputation.

How Employers and Employees Can Challenge Garden Leave

Employees may challenge Garden Leave placement, especially if they are eager to start afresh and join their new employer. Some may even decide to throw caution to the wind and commence employment regardless. The next step must be considered carefully. You could let the matter pass unchallenged – however, this may give the green light to other employees to do the same – or you could sue for damages, a potentially lengthy and costly process.

In order that both parties are crystal clear about what is and is not allowed throughout the period of Garden Leave, it is recommended to detail such provisions within Garden Leave clauses in the contract of employment. Clarity of what will happen if the employee fails to fulfil the requirements should be included in addition to a link with any post-termination restrictions that may be in place.

The Process of Implementing Garden Leave

Before placing an employee on garden leave, it is essential to ensure that the business has a clear contractual right to do so. A valid garden leave clause must be included within the employee’s contract of employment; without this, enforcing garden leave could amount to a breach of contract.

In addition to the contractual right, there must be a reasonable business justification for placing an employee on garden leave. This could include protecting confidential information, safeguarding key client relationships, maintaining team stability, or preventing a departing employee from joining a competitor immediately.

Step 1: Review the Employment Contract

Check that the employee’s contract contains an explicit garden leave clause and confirm any other related terms, such as confidentiality, notice periods, and post-termination restrictions. Review how benefits, commission, or bonuses are treated during this period to avoid disputes.

Step 2: Assess and Document the Reason

Before taking action, record the reason for the decision to ensure transparency and consistency. The rationale should clearly demonstrate that the decision is in the legitimate interests of the business and not punitive.

Step 3: Communicate the Decision Clearly

The employee should be informed in writing that they are being placed on garden leave. The letter should confirm:

• • The effective date the garden leave begins and its expected duration.

  • The employee’s rights and obligations during this period, including pay, benefits, and restrictions.

  • Any requirements to remain available for queries, handovers, or transitional support.

  • Any limitations on contacting clients, colleagues, or accessing company systems or premises.

  • Guidance on how annual leave, equipment return, and communication will be managed.

Providing a clear and respectful written notification helps to minimise confusion and potential conflict.

Step 4: Manage Access and Handover

Once garden leave has begun, the employer should promptly:

• • Revoke or suspend access to internal systems and confidential data.

  • Arrange for the return of company property such as laptops, phones, or passes.

  • Ensure that a handover has been completed or that key knowledge has been transferred before the leave period starts.

Step 5: Maintain Communication and Record Keeping

Although the employee is not working, it is important to maintain appropriate communication during the notice period. Keep a record of correspondence, payments, and any updates to ensure compliance and protect the business if a dispute arises.

Step 6: Prepare for the Termination Date

As the garden leave period concludes, confirm in writing the employee’s termination date and any final payments due, including outstanding holiday pay. Remind them of any post-termination restrictions that will continue to apply once employment officially ends.

Impact on Company Culture

Garden leave does more than protect a company’s commercial interests. It can also play an important role in safeguarding and maintaining a positive workplace culture during times of change.

When an employee is disengaged, unhappy, or preparing to move on, their attitude and behaviour can sometimes affect the wider team. Low morale, gossip, or frustration can spread quickly, especially if colleagues feel uncertain about the reasons for their departure. Placing the employee on garden leave can help to create space and stability, giving teams time to refocus and continue working without disruption.

This approach can also reassure other employees that the organisation is handling the transition professionally and fairly. It avoids situations where a departing employee might unintentionally influence others to consider leaving, or where tension arises between team members.

Handled well, garden leave demonstrates that the business prioritises both cultural harmony and respectful exits. It gives the departing employee privacy and time to move on positively, while allowing the remaining team to maintain momentum and confidence in leadership.

UK Employment Law

Recent developments in UK employment law have focused on the use of restrictive covenants and how employers can protect their business interests when employees leave.

In May 2023, the UK Government confirmed its intention to limit the duration of post-termination non-compete clauses in employment and worker contracts to a maximum of three months. This proposal followed a consultation on how such clauses affect employee mobility and business growth.

As of October 2025, this reform has not yet been implemented. The Government has indicated that it will publish further details and a consultation on how the change will work in practice before any legislation takes effect.

The proposed reforms apply only to non-compete covenants, clauses that prevent employees from working for a competitor after their employment ends. They do not affect other contractual protections such as:

• • Non-solicitation clauses, which stop employees from approaching former clients or colleagues.

  • Non-dealing clauses, which prevent employees from providing services to former clients even if approached by them.

  • Non-poaching clauses, which restrict attempts to recruit former colleagues.

  • Confidentiality obligations and garden leave provisions, which remain valid and enforceable under existing law.

Because non-compete restrictions may soon be limited, many employers are reviewing their contracts and relying more heavily on garden leave clauses to protect sensitive information and key business relationships during the notice period. Garden leave remains a practical and lawful way to manage risk while maintaining control over the employee’s activities before their employment formally ends.

Finally, it is worth remembering that since 6 April 2020, under the Good Work Plan, all employees are entitled to receive a written statement of employment particulars from day one. This must include key details such as notice periods, pay, benefits, and any clauses relating to garden leave or post-termination restrictions.

In summary: What UK employers need to know

Placing an employee on garden leave can offer flexibility and protection for a business, ensuring a smooth transition as they leave. However, as we have established, to place an employee on garden leave your employment contracts must contain a valid garden leave clause.

For more help on ensuring your contracts of employment provide protection for your business and peace of mind for you, please contact us and speak to a member of our friendly HR team, who will be happy to help.

Frequently Asked Questions