Glossary · UK

What is Garden Leave?

Garden leave is when an employee serving notice is told to stay away from work while remaining employed and paid in full.

Full Definition

Garden leave describes a period during an employee's notice when the employer requires them not to attend work or perform duties, yet keeps them on the payroll on full pay and benefits until the contract ends. It is typically used when someone resigns or is given notice and the employer wants to keep them away from clients, colleagues or sensitive information, often before they join a competitor. During garden leave the individual remains an employee, so they cannot start a new job elsewhere and must still comply with their contract, including confidentiality and exclusivity. Pay during this period is taxed as normal employment income through PAYE, with Income Tax and Class 1 National Insurance applied in the usual way - for 2026/27, employee NI is 8% on earnings between GBP 12,570 and GBP 50,270 and 2% above. Employers usually need an express contractual clause to enforce garden leave, and the period commonly runs alongside post-termination restrictions.