Garden Leave Explained: Pay, Rights and Rules in the UK

It usually happens when someone resigns to join a competitor, or when a business wants a senior person out of the office quickly. For the employee it can feel like a paid holiday. For the employer it's a way of protecting clients and information. Here's what Acas and GOV.UK say about how it works.

Why employers use garden leave

Acas says the usual reason is that the employer doesn't want the employee to have access to sensitive or confidential information they could use in a new job. GOV.UK adds that your employer may ask you not to come into work, or to work at home or another location, during your notice period. Either way, you're still on the payroll and still bound by your contract.

Garden leave vs payment in lieu of notice (PILON)

	Garden leave	Payment in lieu of notice
Are you still employed?	Yes, until the notice period ends	No, employment ends straight away
Pay	Normal pay for the notice period	Full pay for the notice period
Contractual benefits	Must continue	Unlikely to continue, as the contract ends
Can you start a new job?	Not until notice ends, without agreement	Yes, once employment has ended
When can the employer use it?	During your notice period	Only if it's in your contract or you agree

That last row matters. GOV.UK says you can only get payment in lieu if it's in your contract or you agree to it, and if you don't agree, you can work out your notice. Acas adds that an employer can't force PILON on someone if it isn't in their contract.

What you're entitled to on garden leave

• Your normal pay. Acas says the employee must be paid as usual during the notice period.
• Your contractual benefits, such as a company car or health cover. GOV.UK says you'll get the same pay and contractual benefits.
• Bonuses and commission during your notice period, unless your contract says otherwise, according to GOV.UK.
• Your continuity of employment. You're still an employee, so your notice period counts as service.

The catch: you're still employed

Here's the part people forget when they book a long holiday. Because you're still employed on garden leave, your contract still applies. Acas is clear that the employee is still employed even though they're not working. Starting work for your new employer before your notice ends could put you in breach of contract, and GOV.UK warns that your employer could take you to court if you breach your contract's terms.

If you want to leave earlier, Acas suggests asking your employer and getting their agreement in writing. If you leave early without agreement, you could be in breach, and the employer only has to pay you for the time you've worked.

Restrictive covenants after garden leave

Garden leave often sits alongside restrictive covenants, which limit what you can do after you leave. Acas lists the common types:

Covenant	What it stops
Non-competition	Working for a competitor or starting a competing business for a period, or within a distance
Non-disclosure	Sharing sensitive or confidential information after you leave
Anti-poaching	Encouraging colleagues to leave with you
Non-solicitation	Trying to win your old employer's clients or customers

Acas says an employer won't usually be able to enforce restrictive covenants unless they're clear, specific and time-restricted, and that this area of law can be complex. Employers should get legal advice before adding them to contracts.

If you're off sick or on leave during notice

Garden leave assumes you're available to work. If you're off sick or on family leave during your notice instead, Acas says the pay rules change. Where your contractual notice is less than a week longer than the statutory minimum, you get full normal pay. Where it's longer than statutory notice by a week or more, you're only entitled to the pay for the reason you're off, such as statutory sick pay. Acas's example: Alex, with 7 years' service and 7 weeks' contractual notice, gets full pay while off sick; Riley, with 7 years' service and 8 weeks' notice, only gets sick pay.

How long garden leave lasts

Garden leave can cover part or all of your notice, so it lasts no longer than your notice period. That's the longer of your contractual notice and the statutory minimum, which Acas sets out as:

1. 1 month to 2 years' service: 1 week
2. 2 to 12 years' service: 1 week for each full year worked
3. 12 years or more: 12 weeks

Senior contracts often set much longer notice, which is why garden leave tends to come up for managers and sales staff with client relationships.

A checklist if you're put on garden leave

1. Ask for the instruction in writing, with the start and end dates.
2. Check your contract for a garden leave clause, a PILON clause and any restrictive covenants.
3. Confirm your pay, benefits, bonus and commission will continue.
4. Stay contactable, as your employer can still ask you to work.
5. Don't start your new job until notice ends, unless your employer agrees in writing to release you early.

Resigning soon? My guide to writing a notice letter helps with the wording, and employers paying notice can use UK payroll software to keep benefits running.

My verdict

Garden leave is a fair deal on paper: you're paid in full to stay away. The risk is treating it as freedom. You're still employed, your covenants still bite, and an early start somewhere new can land you in court. Get the terms in writing, keep your phone on, and agree any early release before you take it.

Frequently asked questions

What is garden leave?

It's when an employer tells an employee not to work part or all of their notice period. The employee stays employed and is paid as usual.

Do you get paid on garden leave?

Yes. Acas says you must be paid as usual during your notice period, including any work benefits in your contract.

Is garden leave the same as payment in lieu of notice?

No. On garden leave you're still employed until notice ends. With payment in lieu of notice, employment ends straight away.

Can I start a new job while on garden leave?

Not without agreement. You're still employed, so starting early could breach your contract. Ask for a written release first.

How long can garden leave last?

No longer than your notice period, which is the longer of your contractual notice and the statutory minimum.

Are restrictive covenants enforceable after garden leave?

Acas says they usually can't be enforced unless they're clear, specific and time-restricted, and the law here is complex.