About garden leave calculator
What garden leave actually means
Garden leave is when your employer keeps you on the payroll, paying your normal salary, but tells you not to come to work for the duration of your notice period. You remain employed and your contract still applies — including confidentiality, non-compete and non-solicit clauses. The end date is typically the same as your contractual notice end date.
Most garden leave clauses give the employer the right to put you on garden leave at any point during your notice. Some require mutual agreement. Read the relevant clause of your contract before assuming what your employer can or can't do, particularly if there's any disagreement about the start date or scope.
Why employers use garden leave
The most common reason is competitive risk. If you're moving to a competitor, garden leave protects the employer's commercial interests by keeping you out of the loop on current deals and clients while still preventing you from starting elsewhere. The longer your notice period, the more strategic value garden leave has for the employer.
Other reasons include reducing the chance of you encouraging colleagues to follow, protecting client relationships during transition, and giving the team time to plan without you in the office. Some employers use it routinely for senior leavers regardless of where they're going next.
What you can and can't do during garden leave
You're still employed, so the same rules apply. You can take pre-approved holiday and you continue accruing leave. You can't start a new role, including consultancy or freelance work, unless your contract or your employer specifically permits it. You also can't contact clients on behalf of a future employer — that breaches both your current contract and any non-solicit clause.
Your salary, pension contributions and most benefits continue normally. Bonuses can be more nuanced — if you'd otherwise have been at work for the bonus period, check the wording of your bonus scheme carefully. Share scheme vesting may continue or pause depending on the plan rules.
Garden leave vs PILON
Garden leave keeps you employed; payment in lieu of notice (PILON) ends the employment immediately and pays out the unworked notice as a lump sum. Tax treatment differs — PILON is fully taxable as earnings, garden leave pay is just normal salary subject to the usual deductions.
Restrictive covenants typically count from your contract end date in both cases, so the timing of when post-termination restrictions start to bite differs significantly. A six-month non-compete after a three-month garden leave means you're effectively out of the market for nine months total. That's worth modelling carefully if you've got an offer in hand and a tight start date.
Frequently asked questions
- How long does garden leave usually last?
- As long as your contractual notice period — typically one to three months for most office roles, six months or more for senior contracts. Your contract dictates the maximum.
- Can I take a new job during garden leave?
- Generally no. You're still employed by your current employer and any non-compete clause still applies. Some employers will release you early to start elsewhere if you ask, particularly if you're not going to a direct competitor — but get the release in writing.
- Do I get my bonus during garden leave?
- It depends on the bonus scheme. If the bonus is for time worked or performance during the period, garden leave may or may not count. Get the specific wording in writing before assuming you'll qualify.
- When do my non-compete clauses start running?
- From the end of your employment, not the start of garden leave. So a six-month non-compete after a three-month garden leave means you're effectively out of the market for nine months total. Calculate this carefully when negotiating a new role's start date.