What is a garden leave clause?

A contractual clause allowing the employer to require the employee to stay away from work during the notice period while continuing to receive full salary and benefits. Requires an express clause; cannot be imposed unilaterally. Common at senior level where restrictive covenants apply.

Do I get paid during garden leave?

Yes. Full basic salary, contractual benefits (pension, private medical, car allowance) continue as normal until the effective date of termination. Bonus treatment is contract-specific; often pro-rated to the start of garden leave.

Can I start a new job during garden leave?

Not with a competitor. Non-competing work may be possible with employer consent. Employment continues until the effective date of termination, so confidentiality, IP assignment and any restrictive covenants remain in force.

Does garden leave count against my non-compete?

UK courts increasingly credit garden leave duration against post-termination non-compete, particularly where the combined total (garden leave + non-compete) exceeds 12 months. Well-drafted contracts express this credit explicitly.

Can I negotiate the garden leave clause?

Yes, at offer stage. Key negotiation points: duration (ideally 1-3 months), bonus treatment (pro-rated to garden leave start), benefit continuation, non-compete set-off, and consultancy carve-outs for non-competing work.

Garden Leave Clause UK (2026): What It Means + How to Negotiate

Why this matters right now

Garden leave use has grown 40 per cent since 2020 in senior professional services and financial services, driven by concerns about client data and competitive intelligence in remote-work environments. Employees signing new senior contracts today should scrutinise the garden leave clause as closely as the non-compete - it is often the more consequential of the two.

What a garden leave clause does

The clause gives the employer the right to require the employee to:

Stay away from the office (and away from work generally) during the notice period.
Not perform any work-related activity for the employer or anyone else.
Not contact clients, colleagues, suppliers or business partners.
Remain available for reasonable transition questions.
Return company property before or at the start of garden leave.

In exchange, the employee continues to receive full salary and contractual benefits until the effective date of termination.

Typical clause elements

Element	Typical range
Duration	1-6 months (equal to notice period)
Salary	Full basic pay continues
Benefits	Pension, PMI, car allowance continue
Bonus	Contract-specific; often pro-rated to garden leave start
Company property	Returnable at start of garden leave
Confidentiality	Continues as normal
IP assignment	Continues as normal
New employment	Not permitted with competitors; may be permitted with non-competitors on request

Case example: garden leave clause creditted against non-compete

A senior sales director had a 6-month garden leave clause and a 12-month post-termination non-compete. He resigned to join a competitor and challenged the combined 18-month restriction as unreasonable. The High Court held that the garden leave duration should be credited against the non-compete period - effectively enforcing 6 months of post-employment restriction rather than 12. He started at the competitor 6 months after his official termination date. The lesson: 18+ months out of the market is rarely enforceable; well-drafted contracts express the credit explicitly.

Interaction with non-compete

UK courts increasingly credit garden leave duration against post-employment non-compete. Rationale:

Garden leave keeps the employee out of the market with pay.
Post-employment non-compete keeps the employee out of the market without pay.
Combined total out of market can exceed the reasonable ceiling.
Courts reduce the enforceable non-compete by the garden leave already served.

See non-compete clauses UK.

What you can do during garden leave

Legitimate uses of the time:

Extended annual leave and travel.
Non-competing consultancy work with employer consent.
Training, certifications, MBA-style courses.
Job search for the next role (starting date must be after termination).
Time with family or personal projects.

What you cannot do:

Any work for a competitor.
Contact clients, colleagues or business partners.
Use confidential information.
Start a new competing business.

Negotiating the clause at offer stage

Points to negotiate before signing a senior contract:

Duration - ideally 1-3 months, not 6-12 unless the role justifies it.
Bonus treatment - pro-rated to garden leave start rather than forfeited.
Benefit continuation - explicit list.
Set-off against non-compete - contractual credit.
Consultancy carve-out - permission for non-competing consultancy with named clients.
Confidentiality survives (accept); non-solicit survives (accept); non-compete duration explicit.

Challenging unreasonable garden leave

Where the employer imposes garden leave beyond contractual scope or in bad faith:

Raise in writing with HR immediately.
Reserve rights explicitly.
Consider constructive dismissal if the imposition amounts to a fundamental breach.
Take specialist legal advice.

Note: garden leave that is contractually valid but commercially aggressive is not usually a breach - it is just the employer using its rights. The remedy is to negotiate the underlying clause before signing.

Pay and benefits during garden leave

The employee continues to receive:

Full basic pay through the effective date of termination.
Contractual bonuses accrued to the start of garden leave (contract-specific).
Pension contributions (auto-enrolment and employer matching).
Private medical insurance, life assurance, car allowance.
Statutory holiday continues to accrue.

Useful calculators

Related guides

Authority pages

Frequently asked questions

What is a garden leave clause?: A contractual clause allowing the employer to require the employee to stay away from work during the notice period while continuing to receive full salary and benefits. Requires an express clause; cannot be imposed unilaterally. Common at senior level where restrictive covenants apply.
Do I get paid during garden leave?: Yes. Full basic salary, contractual benefits (pension, private medical, car allowance) continue as normal until the effective date of termination. Bonus treatment is contract-specific; often pro-rated to the start of garden leave.
Can I start a new job during garden leave?: Not with a competitor. Non-competing work may be possible with employer consent. Employment continues until the effective date of termination, so confidentiality, IP assignment and any restrictive covenants remain in force.
Does garden leave count against my non-compete?: UK courts increasingly credit garden leave duration against post-termination non-compete, particularly where the combined total (garden leave + non-compete) exceeds 12 months. Well-drafted contracts express this credit explicitly.
Can I negotiate the garden leave clause?: Yes, at offer stage. Key negotiation points: duration (ideally 1-3 months), bonus treatment (pro-rated to garden leave start), benefit continuation, non-compete set-off, and consultancy carve-outs for non-competing work.

Sources and further reading

ACAS — Free, impartial UK employment advice.
ACAS: Notice periods and garden leave — Guidance.
Employment Rights Act 1996, section 86 — Statutory minimum notice.
GOV.UK: Handing in your notice — Government guidance.
Tillman v Egon Zehnder Ltd [2019] UKSC 32 — Modern authority on restrictive covenants.

General information about UK employment law, not legal advice. For your situation, contact ACAS or an employment-law solicitor.