UK · Templates

Garden leave letter

Garden leave requires either a contractual clause or mutual agreement in writing. Both directions of correspondence should confirm the effective start date, expected end date (final working day per notice), continuing obligations (confidentiality, non-compete), and pay treatment.

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When garden leave applies

Garden leave = paid but not working during the notice period. Requires a contractual clause or mutual agreement. Common at senior level, particularly where restrictive covenants apply and the employer wants to prevent access to confidential information. See garden leave explained.

Employer imposing garden leave (letter to employee)

[Date]

Dear [Employee Name],

Further to your resignation letter dated [resignation date], I am writing to confirm that the company is exercising its rights under clause [X] of your employment contract to place you on garden leave for the duration of your notice period.

Garden leave will begin on [start date - usually next working day after this letter] and end on [effective date of termination - end of contractual notice period].

During garden leave you will:

  1. Continue to receive your full basic salary and contractual benefits (pension, private medical insurance, car allowance).
  2. Not be required to attend the office or perform any work.
  3. Not be entitled to contact clients, colleagues or suppliers on company matters without prior written consent.
  4. Remain bound by all contractual obligations including confidentiality, IP assignment and any restrictive covenants.
  5. Remain available to answer reasonable transition questions if requested.

Please return company property (laptop, phone, ID card, keys) by [date] to [contact].

Your holiday balance will be treated as follows: [describe accrued balance and treatment].

Yours sincerely,

[HR Director / Line Manager Name]

Employee confirming garden leave (letter to employer)

[Date]

Dear [HR Contact],

Thank you for your letter of [date] confirming that I will be placed on garden leave for my notice period.

I confirm my understanding that:

  1. My employment will continue until [effective date of termination].
  2. I will receive full basic salary and contractual benefits during this period.
  3. I remain bound by confidentiality, IP assignment and other surviving contractual obligations.
  4. [Any restrictive covenants specified in the contract] apply after the effective date of termination for the periods specified.

I will return company property as listed by [date]. I will remain reachable at [personal email / phone] for reasonable transition questions.

Please confirm the treatment of my accrued but untaken annual leave and any bonus or long-term incentive that would vest during the notice period.

Yours sincerely,

[Your Name]

Employee challenging garden leave (no contractual clause)

[Date]

Dear [HR Contact],

I have received your letter of [date] purporting to place me on garden leave for my notice period. I have reviewed my employment contract and note that no garden leave clause exists.

Without a contractual clause or my express written agreement, garden leave cannot lawfully be imposed. I therefore request confirmation of my expected work schedule during the notice period, including handover arrangements.

If the company wishes to reach a mutual agreement for me to remain at home during notice (garden leave by consent), I am open to discussion, subject to confirmation of [specific concerns - benefits, non-compete waiver, pay treatment].

Yours sincerely,

[Your Name]

Common terms to confirm

  • Start and end date.
  • Basic pay and continuing benefits (pension, PMI, car allowance).
  • Bonus and LTIP treatment.
  • Accrued annual leave.
  • Continuing contractual obligations.
  • Restrictive covenants (does garden leave credit against non-compete?).
  • Company property return.
  • Reference wording.
  • Contact expectations during the period.

Delivery

Both employer and employee correspondence should be in writing, dated, and delivered via email with a copy sent by post signed for. Save all correspondence for the record.

Legal advice

For senior roles with substantial restrictive covenants or bonus/LTIP implications, take specialist employment-law advice before confirming garden leave terms. Garden leave is a valuable settlement lever - use it strategically.

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Frequently asked questions

Do I have to accept garden leave?
If the contract has an express garden leave clause, yes - the employer can impose it. Without a clause, no - garden leave requires either a contractual right or your express written agreement.
What pay do I get during garden leave?
Full basic salary and contractual benefits (pension, private medical, car allowance) continue as normal. Bonus and LTIP treatment depends on scheme rules. Statutory holiday continues to accrue.
Can I get a new job during garden leave?
Usually not with a competitor - the employment continues and restrictive covenants apply. Other non-competing work may be possible with employer consent. Post-employment restrictions still apply after the effective date of termination.
Does garden leave count against restrictive covenants?
UK courts increasingly credit garden leave against post-termination non-compete periods, particularly where the total ban would exceed 6-12 months. Well-drafted contracts express this credit.
Can I do consulting work during garden leave?
Not with competitors. Non-competing work may be possible with express employer consent. Confidentiality and IP assignment continue in force - do not use company information in the new work.

Sources and further reading

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