What is gardening leave? Essential guide for UK employers

⚠️ Warning: there is no specific UK legislation governing gardening leave. Without a contractual clause, employers have no automatic right to enforce it.

Employee departures are a normal part of running a business, but they can also present challenges in some cases. Managing transitions effectively helps protect business interests while ensuring employers continue to meet their contractual obligations.

According to the Office for National Statistics (ONS) UK job vacancies fell to 712,000 in April to June 2026, down 2.5% on the year (ONS, released 21 July 2026, demonstrating the ongoing movement of employees and the need for employers to manage notice periods effectively. 

This is where garden leave can play an important role. Below, we'll explain how garden leave works in the UK, when employers can use it and what should be included in a garden leave clause to help manage employee departures fairly and consistently.

What is the definition of garden leave?

Garden leave is a period during an employee's notice period where they remain employed and continue to receive their contractual pay and benefits but are not required to attend work or carry out their usual duties. Often referred to as gardening leave, it is commonly used to help protect a business's confidential information, client relationships and commercial interests when an employee is leaving the organisation.

Why do employers use garden leave?

The meaning of garden leave goes beyond simply asking an employee to stay away from work during their notice period. Employers typically use gardening leave to protect legitimate business interests while an employee prepares to leave the organisation. During this time, the employee remains employed and continues to receive their contractual salary and benefits, but they are usually not required to carry out their normal duties or attend the workplace.

It is most commonly used when an employee has access to confidential information, strong client relationships or commercially sensitive data. It can also help employers manage a smooth transition by limiting business disruption while allowing time for knowledge transfer and succession planning.

How does garden leave work in the UK?

In the UK, garden leave usually begins once an employee has resigned or been given notice that their employment will end. Throughout the notice period, the employee remains on the payroll and continues to receive their contractual pay and benefits, but they are generally not expected to attend work or perform their usual duties. 

📌 Example : a finance manager resigns to join a competitor and has a three-month notice period. Rather than continuing to attend work, the employer places them on garden leave. The employee continues to receive their salary and contractual benefits, but no longer has access to financial systems or commercially sensitive information during their notice period.

What are the rules for garden leave?

While there is no specific legislation that governs garden leave in the UK, employers should ensure they apply it in accordance with the employee's contract of employment and general employment law. For context, the statutory notice period ranges from one week (after one month's service) up to a maximum of 12 weeks for employees with 12+ years' service (GOV.UK/ACAS). Garden leave can only run for the length of this notice period, whichever is longer, statutory or contractual. In most cases, the right to place an employee on garden leave should be included in a contractual garden leave clause. Throughout the notice period, employees must also continue to comply with the terms of their employment contract, including any obligations relating to confidentiality and reasonable employer instructions. 

When can employers place an employee on garden leave?

Garden leave is often considered where an employee:

• Is joining a competitor.

• Has access to commercially sensitive information.

• Manages important client or supplier relationships.

• Holds a senior or specialist position within the business.

• Is involved in a business restructure or redundancy process.

Although employees are not expected to perform their usual duties, they remain employed and may still be asked to complete reasonable tasks, such as answering business queries or assisting with a handover where permitted by their contract.

What happens if garden leave isn't in the contract?

If garden leave isn't in the contract, employers may not have an automatic right to require an employee to stay away from work during their notice period. In these situations, employers should review the employment contract carefully and consider whether the employee agrees to the arrangement.

Including a clearly drafted garden leave agreement or contractual clause helps reduce uncertainty and ensures both parties understand their rights and obligations before employment ends.

Where no contractual right exists, employers may wish to seek legal advice before enforcing garden leave, particularly where the employee is likely to challenge the decision.

⚠️ Warning : attempting to place an employee on garden leave without a contractual right could increase the risk of contractual disputes. Before enforcing garden leave, employers should ensure their employment contracts clearly set out when it may be used.

When should employers use garden leave?

Garden leave is not appropriate in every situation. Employers should consider whether it is necessary to protect legitimate business interests and whether the employee's absence from the workplace is proportionate to the circumstances. 

What do employees receive during garden leave?

In most cases, employers should:

• Continue paying the employee's contractual salary.

• Maintain contractual benefits, unless the employment contract states otherwise.

• Keep the employee employed until their notice period ends.

• Clearly communicate any ongoing obligations, such as confidentiality or remaining available for reasonable business queries.

• Apply the organisation's garden leave policy fairly and consistently.

Can garden leave be used during redundancy?

Although not every redundancy situation requires garden leave, employers may decide to use it where an employee has access to confidential information, is involved in sensitive business projects or where an immediate departure is in the best interests of the organisation.

Employees placed on garden leave as part of a redundancy process generally continue to receive their normal contractual pay and benefits throughout their notice period, unless their contract states otherwise.

👉 To note : garden leave and redundancy are not the same. Redundancy is a reason for ending employment, whereas garden leave is a way of managing an employee's notice period before their employment officially ends.

What do employees receive during garden leave?

Employees placed on garden leave remain employed throughout their notice period, meaning they will usually continue to receive their contractual pay and benefits until their employment officially ends. Exactly what employees receive will depend on the terms of their employment contract and the organisation's garden leave policy. 

Garden leave pay and benefits

In most cases, employees continue to receive their normal salary while on paid garden leave. They will also typically remain entitled to their contractual benefits, such as pension contributions, private medical insurance or other benefits included in their employment package, unless their contract states otherwise.

Employers should also consider how garden leave affects:

• Garden leave and bonus payments, including whether employees remain eligible for discretionary or contractual bonuses.

• Garden leave and holiday pay, including how any accrued but untaken annual leave will be managed.

👉 To note : the way bonus payments and other contractual benefits are handled during garden leave will depend on the wording of the employment contract and any applicable workplace policies.

Employee rights during garden leave

Although employees are not carrying out their usual duties, gardening leave employee rights remain largely unchanged because the employment relationship continues until the notice period ends. 

Employees will usually:

• Continue receiving their contractual salary.

• Remain entitled to contractual benefits, where applicable.

• Continue to accrue statutory annual leave.

• Be expected to comply with confidentiality obligations and other contractual terms.

• Be required to follow any reasonable instructions permitted under their employment contract.

If an employee becomes unwell during their notice period, employers should also consider how garden leave and sickness are managed under their contractual policies and employment obligations.

Garden leave vs other types of notice

Garden leave is just one way of managing an employee's departure from an organisation. Depending on the circumstances, employers may instead ask an employee to work their notice period, make a Payment in Lieu of Notice (PILON) or, in some situations, suspend them from work. Understanding the differences can help employers choose the most appropriate approach while ensuring contractual obligations are met.

Garden leave vs notice period

📌 Example: an employee has a three-month notice period. They may either continue working for those three months or, if their contract allows, be placed on garden leave for all or part of that notice period.

Garden leave vs PILON and suspension

Garden leave, Payment in Lieu of Notice (PILON) and suspension are often confused, but they serve different purposes. 

👉 To note: the most appropriate option will depend on the employee's circumstances, the employment contract and the needs of the business. Employers should always ensure they follow their contractual obligations and internal procedures when deciding how to manage an employee's departure.

How should employers implement a garden leave policy?

A well-designed leave policy helps employers manage employee departures consistently while protecting business interests. By clearly setting out when garden leave may be used and what is expected from both parties, employers can support a smoother offboarding process and reduce uncertainty.

What should a garden leave clause include?

A garden leave clause will typically include:

• When may garden leave be used?

• The maximum length of garden leave.

• Confirmation that contractual salary and benefits will continue.

• Expectations around returning company equipment.

• Ongoing confidentiality obligations.

• Whether employees must remain available for reasonable business queries.

• Any restrictions on contacting clients, suppliers or colleagues during the notice period.

📌 Example: a technology company includes a gardening leave clause in all senior employment contracts. If an employee resigns to join a competitor, the employer can place them on gardening leave during their three-month notice period while restricting access to company systems and confidential information.

Managing garden leave with HR software

Managing gardening leave often involves updating employee records, tracking notice periods, preventing payroll mistakes and ensuring contractual obligations continue to be met. As businesses grow, handling these tasks manually can become increasingly time-consuming.

From recording employee departures and maintaining accurate HR records to automatically reflecting contractual changes in payroll, PayFit helps employers manage offboarding more efficiently while keeping employee information up to date in one place.

Using an integrated HR and payroll platform can also help employers:

• Maintain accurate employee records throughout the notice period.

• Store employment contracts and company policies securely.

• Manage employee departures through a consistent offboarding process.

• Keep payroll calculations accurate until employment ends.

• Improve visibility across HR and payroll teams.

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