What Is Garden Leave | UK Employment Guide

Garden leave is a common employment practice in the UK that comes into play when an employee is leaving a company but remains on the payroll during their notice period without working. Whether you’re an employer managing staff transitions or an employee navigating your departure, understanding garden leave is important. This article explains what garden leave is, why it’s used and its implications.

Defining Garden Leave

Garden leave occurs when an employer instructs an employee to stay away from work during their notice period while continuing to receive their normal salary and benefits. The employee is technically still employed but does not perform their usual duties.

The term “garden leave” suggests that the employee is metaphorically sent to tend their garden instead of working.

Why Garden Leave Matters

Employers use garden leave to protect sensitive information, prevent departing employees from immediately joining competitors, and maintain business continuity during transitions.

For employees, garden leave provides a paid break before starting a new role but may limit their ability to work elsewhere during this time.

When Is Garden Leave Used?

Garden leave is often included as a clause in employment contracts and is typically invoked when an employee resigns, is made redundant or is terminated with notice.

It is particularly common for senior staff, executives or those with access to confidential information or client relationships.

Rights and Restrictions During Garden Leave

Employees on garden leave continue to receive their contractual pay and benefits but must comply with employment terms, including confidentiality and non-compete clauses.

They usually cannot start new employment without employer consent and may be required to be available for consultation.

Pros and Cons of Garden Leave

Garden leave helps employers safeguard interests and manage smooth handovers. It can reduce workplace disruption and risks of poaching clients or staff.

For employees, it offers financial security and time to prepare for new roles. However, it can be frustrating to be sidelined and restricts earning potential during the period.

Legal Considerations

Garden leave must comply with employment contracts and UK employment law. Unreasonable or extended garden leave may be challenged by employees.

Clear contractual terms and fair application are essential to avoid disputes.

Industry Variation

Garden leave is prevalent in sectors such as finance, law and technology where sensitive information and competitive positions are critical.

Looking Ahead: Trends in Garden Leave

The rise of remote work and digital connectivity may affect how garden leave is managed, with increased monitoring and flexible arrangements.

Conclusion

Garden leave is a contractual arrangement allowing employers to keep departing employees away from the workplace while maintaining pay. Understanding its purpose, rights and challenges helps both parties navigate employment transitions effectively.