Garden leave is where an employer instructs an employee not to attend work during their notice period, while keeping them on full contractual pay as an employee. An employer can only place an employee on garden leave if the employment contract contains an express clause permitting it — there is no statutory right to garden leave; it is a contractual mechanism. Throughout garden leave, the employee remains employed, continues to receive full pay and contractual benefits, cannot start work for a competitor, and continues to accrue annual leave. Updated June 2026.
Source: Employment Rights Act 1996, s.86–91; common law contract of employment; acas.org.uk/notice-periods/when-an-employee-is-not-required-to-work-their-notice.
What the law says
Garden leave is not defined in statute. It is a creature of the common law of contract, operated through an express term in the employment contract. Without such a term, an employer who instructs an employee to stay away from work during the notice period may be breaching the implied contractual duty to provide work — particularly for employees in roles where working is essential to maintain professional skills, contacts, or a public profile (for example, a financial trader, a surgeon, or a journalist).
In most office and administrative roles, the courts have held that employers are not generally obliged to provide work — they must pay, but are not required to find tasks. Even so, prudent employers include an express garden leave clause rather than relying on general common law principles.
Source: ACAS guidance at acas.org.uk/notice-periods/when-an-employee-is-not-required-to-work-their-notice.
Why employers use garden leave
Employers typically use garden leave in two situations:
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To protect confidential information and business relationships. By removing the employee from the workplace, the employer prevents them from building client relationships that could benefit a competitor, accessing sensitive data, or using current business intelligence in a new role.
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To manage the transition for senior or client-facing roles. Where an employee's departure may unsettle clients, a clean break with a period of garden leave can allow the business to manage the transition before the employee is free to work for a competitor.
Garden leave is commonly used alongside post-termination restrictive covenants — clauses that restrict what the employee can do after their employment ends (for example, non-solicitation of clients or non-compete obligations). Courts have sometimes held that a garden leave period should be offset against the duration of a post-termination restriction, particularly where both serve the same protective purpose.
What the employee is entitled to during garden leave
Because employment continues throughout garden leave, the employee retains all contractual and statutory employment rights:
- Full contractual salary — the employer cannot reduce pay during garden leave.
- Contractual benefits — pension contributions, health insurance, company car (where contractually provided), and other benefits continue.
- Annual leave accrual — statutory leave continues to accrue under the Working Time Regulations 1998, reg.13 (5.6 weeks per year). Accrued leave should be taken during the garden leave period or paid out at termination.
- Protection from dismissal — the employee cannot be dismissed without following a fair procedure simply because they are on garden leave. Redundancy and disciplinary processes apply in the usual way.
- Continued employment for continuous service — the garden leave period counts towards continuous employment for all purposes, including statutory redundancy pay and unfair dismissal qualifying periods.
Source: acas.org.uk/notice-periods; WTR 1998, reg.13.
What the employee cannot do during garden leave
The employee remains bound by their employment contract throughout garden leave:
- Cannot work for a competitor. Starting work with a competitor during garden leave is a breach of contract and potentially a breach of the duty of fidelity (the implied duty of loyalty). The employer may seek an injunction or damages.
- Cannot set up a competing business. Establishing a competing business while still employed is also a breach.
- Must follow reasonable instructions. Even on garden leave, the employee may be required by the employer to return company property, complete a handover, or attend specific meetings — if the contract permits this.
- Bound by confidentiality obligations. The implied duty of confidentiality continues to apply to any confidential information obtained during employment.
Source: common law; acas.org.uk/notice-periods.
Garden leave and statutory notice rights
Where an employer gives only the statutory minimum notice under ERA 1996, s.86 (one week per year of service, minimum one week, maximum 12 weeks) and places the employee on garden leave, the employee has the enhanced "minimum notice rights" under ERA 1996, s.88–91. This means:
- The employee receives full contractual pay even if they would otherwise be on sick pay or maternity pay.
- These rights apply only to the statutory minimum notice period, not to contractual notice above the statutory minimum.
If the employer gives more than the statutory minimum notice (for example, three months' contractual notice when only six weeks' statutory notice is required), the enhanced minimum notice rights apply only to the statutory minimum element. Normal sick pay or absence pay rules apply to the additional weeks.
For your statutory notice entitlement, use the free statutory notice period calculator.
Garden leave versus payment in lieu of notice (PILON)
| Garden leave | PILON | |
|---|---|---|
| Employment status | Employed throughout notice period | Terminates immediately |
| Pay | Full contractual pay as normal earnings | Lump-sum payment taxed via PENP rules |
| Benefits | Contractual benefits continue | Benefits end on termination date |
| New job | Cannot start during garden leave | Can start immediately |
| Restrictive covenants | May be offset against post-termination restrictions | Garden leave period may still apply separately |
For the tax treatment of PILON, see payment in lieu of notice explained.
Garden leave and redundancy
Being placed on garden leave during a redundancy notice period does not affect the redundancy pay calculation. Statutory redundancy pay is based on age, years of continuous service (capped at 20 years), and weekly pay (capped at £751 from 6 April 2026) — none of these are affected by whether the employee works their notice or is placed on garden leave.
Use the free statutory redundancy pay calculator to calculate entitlement.
Calculate your notice period
Use the free statutory notice period calculator to check your statutory notice entitlement. For garden leave disputes or advice on post-termination restrictions, contact ACAS or an employment solicitor.
Frequently asked questions
See the FAQ below. For advice specific to your situation, contact ACAS or call the ACAS helpline on 0300 123 1100.
Back to notice pay rights.