What's Garden Leave a UK Employer's Practical Guide

So, what exactly is garden leave?

It’s a UK employment practice where a departing employee stays home during their notice period but continues to receive their full pay and benefits. Think of it as a paid 'cooling-off' period—a strategic move businesses use to protect themselves after a key team member hands in their notice, particularly if they’re heading to a competitor.

Unpacking the Core Concept of Garden Leave

Let’s picture this: your top sales director, the one who knows all your major clients inside and out, resigns. You find out they’re moving to your biggest rival.

Allowing them to work their three-month notice in the office is a huge risk. They could access sensitive data, whisper in the ears of key clients, or even poach other team members. This is exactly where garden leave comes into play.

It's crucial to understand this isn't a punishment. It's a shield for the business. The employee remains on the payroll, getting their full salary and benefits, but their access to company systems, client lists, and confidential information is cut off immediately. They are effectively removed from the business while remaining, on paper, an employee.

Who Typically Gets Put on Garden Leave?

This isn’t a tactic for every departing employee. It’s usually reserved for those whose exit could cause real damage to the business—people with deep access to commercially sensitive information or those holding influential client relationships.

The most common candidates include:

• Senior Executives: They’re privy to strategic plans, financial data, and high-level business intelligence.
• Top Sales Staff: Their departure creates a risk of client poaching and a direct hit to revenue.
• Key Technical Experts: They might hold valuable trade secrets, proprietary code, or product roadmaps in their heads.
• Research and Development Roles: These individuals are at the heart of future innovations that need protecting.

For any employee, the first step is always handing in your notice. Knowing how to write a resignation letter professionally often kicks off the conversation about what the notice period will look like, including any potential garden leave.

At its heart, garden leave creates a buffer. It ensures that by the time the employee starts their new role, any confidential information they possess is less current and therefore less damaging to your business.

To break it down, here are the fundamentals of garden leave in a nutshell.

Garden Leave at a Glance

This table offers a quick summary of the key aspects of garden leave.

Aspect	Description
What is it?	An employee serves their notice period at home while receiving full pay and benefits.
Why is it used?	To protect business interests like client relationships and confidential information.
Who is it for?	Senior employees or those with access to sensitive commercial data.
Duration?	Matches the contractual notice period, often 3 to 6 months for senior roles.
Employee Status?	Still legally employed and bound by their contract (e.g., confidentiality clauses).

By keeping the employee away from colleagues, clients, and company data, you minimise disruption and protect valuable assets during a potentially vulnerable transition. This makes garden leave a vital tool in any modern HR toolkit.

Getting the Legal Foundations Right in the UK

For garden leave to be enforceable in the UK, it can’t be a spur-of-the-moment decision. It has to be built on solid legal ground, and that starts with the most important element: a specific, well-drafted clause in the employment contract.

Without this express clause, putting an employee on garden leave could land you in hot water for breach of contract. An employer can't just decide to send someone home and expect the restrictions to stick; the right to do so has to be agreed upon from day one.

The All-Important Principle of Reasonableness

When it comes to it, UK employment tribunals look very closely at garden leave clauses to make sure they’re fair. The key principle they apply is reasonableness. This means the clause can't be used to unfairly punish a departing employee or act as an unreasonable restraint of trade.

The most common point of contention is the duration. A garden leave period that is excessively long compared to the employee's role and seniority is likely to be challenged. For example, a 12-month period might be seen as unreasonable for a mid-level manager but could be perfectly justifiable for a CEO with access to long-term strategic plans.

A court will weigh up a few things:

• The employee's position and their level of influence.
• The length of the notice period itself.
• The genuine need to protect legitimate business interests (like client relationships or confidential data).

The high-profile case of Dan Ashworth's move from Newcastle United to Manchester United is a perfect example. A lengthy, contested garden leave period became a central part of the negotiations, showing how clubs (and companies) use it as a strategic bargaining chip, but also how its duration can be challenged if it’s seen as over the top.

Garden Leave vs. Restrictive Covenants

It’s really important not to mix up garden leave and restrictive covenants (like non-compete clauses), as they do different jobs. Garden leave is active during the notice period while the employee is still on your payroll. Restrictive covenants, on the other hand, only kick in after the employment has officially ended.

Garden leave keeps an employee on your team but out of the game, still bound by their existing duties of loyalty and confidentiality. Restrictive covenants dictate what they can and cannot do once they are no longer your employee.

This distinction is becoming more critical. In the UK's fast-moving job market, garden leave is a powerful tool for employers managing high-stakes exits, especially with non-compete reforms on the horizon. The government has started looking at curbing these post-employment restrictions, which is pushing more companies towards garden leave as a reliable way to keep key people paid but sidelined.

This all means that having a robust, reasonable garden leave clause in your contracts is more vital than ever for protecting your business during critical staff transitions. And remember, an employee on garden leave continues to accrue all their entitlements. You can learn more by checking out our guide on holiday pay rules when an employee leaves.

What Are the Rules for Employers and Employees?

Once you place an employee on garden leave, the usual rules of engagement change. It's a strange middle ground where they're still on your payroll but aren't coming into work. Think of it less like a surprise holiday and more like a formal cooling-off period where both sides have clear responsibilities.

Getting this part right is crucial for a smooth and legally sound exit.

H3: What Employers Must Provide

From the employer's perspective, it's pretty straightforward: you must continue to honour the employment contract in full. The employee is still your employee until their official last day, and their entitlements don't just vanish because they're at home.

This means you are obligated to provide:

• Full Pay: Their regular salary must be paid on the usual schedule, without any deductions.
• Contractual Benefits: This isn't just about the basics. If their contract includes private health insurance, a company car, or even a gym membership, those benefits must continue.
• Pension Contributions: Your contributions to their pension scheme must carry on as normal.
• Holiday Accrual: An employee’s statutory right to accrue annual leave continues right up until their final day of employment.

In short, you treat them exactly as you would any other employee on your payroll, just without the expectation they'll be at their desk. Dropping the ball on any of these can easily lead to a breach of contract claim, so it pays to be diligent.

H3: What Employees Must Adhere To

On the flip side, the employee isn't free to do as they please. Their contract of employment remains fully in force, and with it, their duties of loyalty and confidentiality. Just because they’re not physically in the office doesn’t mean their professional responsibilities have disappeared.

During garden leave, an employee is strictly forbidden from:

• Starting a New Job: They cannot begin working for another company, whether it's paid or voluntary. This is the core purpose of garden leave.
• Contacting Clients or Colleagues: Reaching out to clients, suppliers, or even former teammates for business-related reasons is a major no-go.
• Disclosing Confidential Information: Their duty to protect your company's trade secrets, data, and sensitive information is as strong as ever.

While they're required to stay away from the office, the employee must also remain reasonably available. You are well within your rights to ask for help with a handover or for answers to critical questions about their projects. They can't just become unreachable.

This unique phase of employment requires careful handling of absence and availability. Managing these rules properly is a key part of a fair process, a topic we dive into in our guide to a fair absence and sickness policy.

To make it crystal clear, let's break down the mutual obligations side-by-side.

Employer vs Employee Obligations on Garden Leave

This table summarises the key duties for both parties during the garden leave period, helping to avoid any confusion.

Responsibility	Employer's Duty	Employee's Duty
Payment & Benefits	Continue to pay full salary and provide all contractual benefits (e.g., health insurance, car allowance).	Not applicable.
Work & Availability	Not to provide the employee with work, but can request reasonable assistance (e.g., for handover).	Remain available for contact and provide reasonable assistance if requested by the employer.
New Employment	Not applicable.	Must not start work for a new employer or engage in competitive activity.
Confidentiality	Uphold data protection obligations regarding the employee's personal information.	Uphold the duty of confidentiality and not disclose any of the employer's sensitive information.
Contact with Business	Cease providing access to company systems, clients, and premises as instructed.	Refrain from contacting clients, suppliers, or colleagues for business purposes.
Contractual Terms	Uphold all other terms of the employment contract (e.g., pension contributions, holiday accrual).	Adhere to all other implied and express terms of the employment contract until the termination date.

By clearly communicating these mutual responsibilities from the outset, HR managers can prevent costly misunderstandings. It ensures the garden leave period effectively protects the business while treating the departing employee fairly and professionally.

Your Step-by-Step Guide to Implementing Garden Leave

Placing an employee on garden leave is a delicate operation. You need precision, professionalism, and a solid plan. A single misstep can not only sour relations but also land you in legal hot water. Think of this as your playbook for getting it right, from the moment a resignation lands on your desk to the employee's final day on the payroll.

The entire process lives or dies on one crucial document: the employment contract. Before you even think about putting someone on garden leave, you must check that a clear, enforceable garden leave clause actually exists. Without it, you have no legal footing, and trying to enforce it could be seen as a breach of contract on your part.

Step 1: Issue the Formal Notification

Once you’ve confirmed you have the contractual right, it’s time to send a formal garden leave letter. This isn't just a courtesy; it's your official record. The letter needs to be crystal clear and professional, leaving no room for misinterpretation.

Make sure the letter explicitly states:

• The exact date the garden leave period begins.
• The expected end date, which is their final day of employment.
• A firm reminder of their ongoing contractual duties, like confidentiality and their duty of loyalty.
• Clear rules about not contacting clients or colleagues, and not accessing company property.
• Confirmation that they will continue to receive their full salary and benefits throughout the period.

It’s vital to keep the tone respectful. Anything that sounds accusatory or punishing could backfire and even fuel a constructive dismissal claim down the line.

Step 2: Revoke Access and Secure Company Assets

As soon as the employee has been notified, it’s time to lock down your systems and assets. This isn't about being punitive; it's a non-negotiable step to protect your company's sensitive information and operational stability.

You'll need to work with your IT team to immediately disable access to everything, including:

• Email accounts and internal chat platforms like Slack or Teams.
• Company networks, servers, and any cloud-based tools.
• Your customer relationship management (CRM) system.
• Any other software that holds proprietary data.

At the same time, you should arrange for the safe return of all physical company property. This means laptops, work mobiles, security passes, and any company credit cards.

This infographic breaks down the core obligations for both sides during the process.

It lays out the division of responsibilities clearly, so there's no confusion about who needs to do what during this tricky time.

Step 3: Manage Internal and External Communications

The final piece of the puzzle is communication. A departing employee, particularly a senior one, leaves a gap. How you manage that information internally and externally matters.

First, draft a clear plan. For your team, announce the departure professionally. Reassure them by explaining how the departing employee's responsibilities will be covered to keep things running smoothly.

For clients, the goal is a seamless handover. Introduce their new point of contact and reassure them that they will continue to receive the same level of service and support. As UK redundancy rates shift with the economy, businesses are increasingly using garden leave strategically during restructures. These pressures highlight why a structured, compliant approach is so important. You can find more insights on handling these exits on avensure.com.

Follow these steps, and you’ll be able to manage garden leave effectively—protecting your business interests while still treating the departing employee with the respect and professionalism they deserve.

Streamlining Garden Leave with an Absence Management System

Trying to manage garden leave with a patchwork of spreadsheets and calendar reminders is asking for trouble. It's a method that's just full of pitfalls—from simple payroll mistakes to serious compliance breaches, all happening during what's already a tricky time for the business. This kind of admin headache really defeats the whole purpose of having a smooth, controlled exit process.

But what if you could connect the dots between the legal theory of garden leave and the practical power of modern HR tools? This is where a dedicated absence management system comes in, transforming a complex process into something that’s transparent, automated, and pretty much foolproof. It’s about swapping administrative dread for streamlined control.

Creating Clarity and Control

The first win is getting away from vague spreadsheet entries. In a proper absence management system, you can create a custom leave category specifically for 'Garden Leave'. Right away, this gives HR, payroll, and the leadership team a crystal-clear view of what's happening.

As soon as an employee is placed on garden leave, their status gets updated on a central planner. This simple action keeps things running smoothly by making it obvious to everyone that the person is out of action, preventing anyone from accidentally contacting them or assigning them new work.

Here’s a look at how a clear visual planner in an absence management system can track all types of leave, including custom ones like garden leave.

This single, shared view puts an end to any confusion and ensures that resource planning stays on track, even while a team member is on their way out. The system becomes the one and only source of truth for all absence data.

Automating Compliance and Documentation

One of the fiddliest parts of handling garden leave is getting the holiday accrual right. An employee continues to build up their annual leave right up until their last day, and a miscalculation here can easily lead to a legal dispute. A good absence management platform takes care of these complex sums automatically, making sure the final payslip is always spot on.

By keeping all communications, agreements, and key dates related to the garden leave in one place, the system builds an essential audit trail. This documentation is your safety net, proving you’ve followed the rules and protecting the business if a legal challenge ever pops up.

In the end, using a dedicated platform is all about moving from reactive fire-fighting to proactive, confident management. If you’re thinking about how to get this set up, you can learn more in our guide to absence management systems. By automating the nuts and bolts of what's garden leave, you free up your HR team to focus on the human side of the transition.

Answering Your Top Questions About Garden Leave

Even when you've got the basics down, garden leave can throw up some tricky real-world questions. Getting the answers right is crucial for keeping everything above board and making sure the process runs without a hitch. Let's dig into some of the most common queries that land on HR's desk.

Can You Enforce Garden Leave Without a Contract Clause?

This is a big one, and the answer is a simple, resounding no. You absolutely cannot force an employee onto garden leave if it's not explicitly written into their employment contract. Trying to do so is a breach of contract, plain and simple.

If you push ahead without that clause, you're opening the door for the employee to resign and claim constructive dismissal. They could argue that you’ve fundamentally broken their employment terms. The power to put someone on garden leave has to be a pre-agreed condition of their job, right there in black and white from day one.

Think of it this way: a garden leave clause isn't just a 'nice-to-have'. It's a non-negotiable legal requirement. Without it, you have no legal ground to stop an employee from working their notice period at their desk as usual.

Do Employees Still Accrue Holiday While on Garden Leave?

Yes, they certainly do. An employee on garden leave is, in the eyes of the law, still an employee until their very last day. This means all their statutory and contractual rights are still in play, and that includes racking up holiday entitlement.

This is a critical detail for your payroll team. When you're calculating that final pay packet, you must include all the holiday days they've earned while on garden leave. Getting this wrong can easily lead to a dispute or even a claim at an employment tribunal.

Can You Ask an Employee to Do Some Work?

It might sound contradictory, but yes, you can. While the whole point is to keep the employee away from the day-to-day business, they are still under contract and on your payroll. That means you're well within your rights to ask for their reasonable assistance.

For instance, you could ask them to:

• Help with a project handover to make sure their replacement can hit the ground running.
• Answer a few critical questions about their past work or key client relationships.
• Provide some information needed to wrap up a report they were handling.

The key word here is reasonable. The employee has an obligation to cooperate with these requests, as they're still bound by their contract. They can't just disappear off the grid.

What if an Employee Starts a New Job Early?

An employee starting a new job while still on your payroll during garden leave is a serious breach of contract. They are still officially your employee, and working for someone else—especially a competitor—is a clear violation of their duty of loyalty and confidentiality.

If you find out this has happened, you have legal options. You can seek an injunction from the courts to stop them from working for the new company for the rest of their notice period. What’s more, if their actions have caused your business tangible financial harm, you might even be in a position to sue them for damages.

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Keeping track of garden leave, holiday accruals, and notice periods demands precision. Leavetrack offers a clear, centralised system to monitor all types of leave, giving you an accurate and compliant record every time. Take the headache out of absence management by visiting https://leavetrackapp.com.