Garden leave is when an employer tells a departing employee to stay away from work during all or part of their notice period, while remaining employed, paid, and still bound by their contract. It is common for senior staff, salespeople, and anyone with access to sensitive information who is leaving to join a competitor. This guide explains how garden leave works, how it differs from payment in lieu of notice, and what it means for pay, benefits and starting new work in 2026/27.
What Garden Leave Means
During garden leave, you remain formally employed and continue to receive your normal salary and contractual benefits, but the employer requires you not to attend work or, often, not to undertake any duties at all -- effectively removing you from the business while your notice period runs, sometimes because you are moving to a competitor and the employer wants you away from clients, colleagues and confidential information during that window.
Because your employment continues, your contractual obligations continue too -- including confidentiality, fidelity, and (crucially) any restrictive covenants -- which is one of the main reasons employers use garden leave rather than simply ending employment early.
The Contractual Basis Required
An employer can only impose garden leave if the employment contract contains an express garden leave clause giving them the right to do so, or if the employee agrees to it at the time. Without such a clause, requiring an employee to stay away from work while withholding meaningful duties could, in principle, amount to a breach of contract (for example, undermining an implied right to work in some roles, particularly where pay is linked to commission or ongoing skill use), so well-drafted senior employment contracts typically include an explicit garden leave provision.
Pay and Benefits During Garden Leave
While on garden leave you continue to receive your full contractual pay and, generally, benefits such as pension contributions, private medical insurance and company car use, since you remain employed under your existing contract, just not required to attend or perform your usual duties.
Commission-based or bonus elements can be more complicated -- if your contract or bonus scheme makes payment conditional on being actively at work or hitting performance metrics that cannot be achieved while on garden leave, disputes can arise about what you are entitled to, so it is worth checking exactly how your contract deals with variable pay during this period.
Garden Leave vs PILON, and Restrictive Covenants
Garden leave and Payment in Lieu of Notice (PILON) both deal with the end of employment, but work very differently: with PILON, employment ends immediately and you are paid a lump sum instead of working your notice, while with garden leave your employment continues throughout the notice period, just without you attending work.
This distinction matters most for restrictive covenants -- post-termination restrictions such as non-compete or non-solicitation clauses only start running once employment actually ends. Because garden leave keeps you employed, any garden leave period effectively extends the practical time you are kept away from competitors, on top of whatever separate post-termination restrictions apply afterwards.
You are also usually contractually prohibited from starting a new job while still employed and on garden leave, even though you are not attending your current workplace, since your existing employment (and its obligations of exclusivity and fidelity) has not yet ended.
Frequently Asked Questions
Can my employer put me on garden leave without my agreement?
Only if your employment contract contains a garden leave clause giving the employer that right, or if you agree to it at the time. Without a contractual basis, forcing an employee to stay away from work while withholding all duties could potentially be challenged as a breach of contract, depending on the specific role and circumstances.
Do I still get paid during garden leave?
Yes, you continue to receive your normal salary and contractual benefits during garden leave, because you remain an employee throughout -- the employer is simply choosing not to have you attend work or perform your usual duties during that period.
What is the difference between garden leave and payment in lieu of notice (PILON)?
With garden leave your employment continues throughout the notice period and you keep working (in name, if not in duties) for the employer, remaining bound by your contract. With PILON, your employment ends immediately and you receive a lump sum payment instead of working your notice, so post-termination restrictions and your ability to start new work generally begin straight away.
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Can I start a new job while on garden leave?
Generally no, at least not with a new employer in a way that conflicts with your current contract -- because you remain employed during garden leave, your existing duties of exclusivity, fidelity and confidentiality continue, and starting substantive new employment elsewhere while still technically employed by your current employer would usually breach your contract.
Does garden leave count towards my notice period?
Yes, garden leave takes place during your notice period -- it is a way of dealing with how that notice period is spent, not a separate period on top of it. Once your notice period (including any time spent on garden leave) ends, your employment terminates in the normal way.
Does garden leave affect restrictive covenants after I leave?
Often, yes. Because covenants like non-compete clauses typically only start running once employment actually ends, and garden leave delays the end of employment, courts often take any garden leave period into account when assessing whether the combined length of garden leave plus post-termination restrictions is reasonable and enforceable.
Can my employer ask me to do any work at all during garden leave?
It depends on your contract. Some garden leave clauses allow the employer to require limited handover or ad hoc tasks, while a "pure" garden leave arrangement withholds all duties entirely. Check your specific contract terms, as this varies between employers and roles.
Do I keep my company car, phone or laptop during garden leave?
This depends on your contract and your employer’s policy -- some employers allow continued use of contractual benefits like a company car during garden leave since you remain employed, while others require equipment to be returned immediately at the start of garden leave for security or confidentiality reasons, even though pay and other benefits continue.
Is garden leave the same as suspension?
No. Suspension is usually a temporary measure connected to a disciplinary or investigation process, often on full pay, pending the outcome of that process, and can happen at any point during employment. Garden leave specifically relates to the notice period after someone has resigned or been given notice, and is about keeping a departing employee away from work and clients, not investigating misconduct.
Do I still accrue holiday while on garden leave?
Yes, because you remain employed throughout garden leave, statutory and contractual holiday continues to accrue in the normal way. Employers can often require accrued but untaken holiday to be used up during garden leave, so check whether your employer has done this before assuming it will be paid out at the end.
Disclaimer: This guide provides general information about garden leave in 2026/27 and is not a substitute for advice from an employment solicitor about your specific contract. This guide is for general information only and is not professional advice. Consult a qualified adviser and refer to gov.uk for current official guidance before relying on any treatment.
