Garden Leave vs Notice Period
Last updated: February 2025
Quick Comparison
| Aspect | Garden Leave | Notice Period |
|---|---|---|
| Working during notice | Employee does not work; stays at home | Employee continues working as normal |
| Access | No access to workplace, systems, clients, or colleagues | Full access to workplace and systems |
| Purpose | Protect the business from competitive harm | Enable an orderly transition and handover |
| Contractual basis | Requires an express garden leave clause | Statutory and/or contractual right |
| Cost | Full pay for no work output | Full pay with continued work output |
What Is a Garden Leave?
A period during notice where the employee remains employed and paid but is instructed not to attend the workplace or perform duties.
Key Features
- • Employee still employed and receiving full pay and benefits
- • Employee instructed not to work or contact clients/colleagues
- • Restrictive covenants effectively enforced during this period
- • Requires an express contractual garden leave clause
Best For
- • Protecting client relationships and confidential information
- • Preventing employees from joining competitors immediately
- • Senior roles with significant influence or knowledge
What Is a Notice Period?
The period between giving notice of termination and the employment actually ending, during which the employee normally continues working.
Key Features
- • Employee continues working during the notice period
- • Both parties bound by contractual and statutory notice requirements
- • Statutory minimum is 1 week per year of service up to 12 weeks
- • Can be given by either the employer or the employee
Best For
- • Orderly handover of responsibilities
- • Maintaining continuity of service
- • Standard termination process for all employees
When to Use a Garden Leave
Use garden leave for senior employees, those with access to sensitive information, or roles involving close client relationships where you want to create distance before they potentially join a competitor.
When to Use a Notice Period
Use a standard working notice period for most employees where an orderly handover is more valuable than restricting access, and the competitive risk is lower.
Which Does Your Business Need?
Include a garden leave clause in contracts for senior or client-facing roles as a protective option. You do not have to invoke it, but having the contractual right gives you flexibility when needed. For most roles, a standard working notice period is sufficient.
FAQ
Can I put an employee on garden leave without a contractual clause?
It is risky. Without an express contractual right, instructing an employee not to work may breach the implied duty to provide work. This could amount to a repudiatory breach, potentially releasing the employee from post-termination restrictions.
Does garden leave reduce the enforceability of post-termination restrictions?
It can. Courts may take garden leave into account when assessing the reasonableness of non-compete clauses, as the employee has already been kept away from the market. Some contracts expressly offset garden leave against the non-compete period.
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