How to Handle Garden Leave
Handle garden leave by invoking the garden leave clause in the employment contract, confirming the terms in writing, continuing to pay salary and benefits throughout, and reminding the employee of their ongoing obligations including confidentiality and restrictive covenants.
Last updated: February 2025
Step-by-Step Guide
Check the garden leave clause
Confirm the employment contract includes an express garden leave clause. Without one, placing an employee on garden leave may be a breach of contract.
- •The clause should allow you to require the employee not to attend work during notice.
Issue the garden leave letter
Write to the employee confirming they are on garden leave, the dates, ongoing obligations, and any specific requirements such as returning equipment.
- •Confirm that salary and all benefits will continue during garden leave.
Manage ongoing obligations
Remind the employee of confidentiality duties, that they must remain available for reasonable requests, and that they must not start work for a new employer during garden leave.
- •Revoke access to systems, email, and premises on the day garden leave starts.
Transition at the end of garden leave
At the end of the notice period, confirm the employment has ended, issue the P45, and remind them of any post-termination restrictions.
- •Some employers offset garden leave time against post-termination restrictive covenants.
Legal Requirements
There is no statutory right to place an employee on garden leave; it must be provided for in the contract. During garden leave, the employee remains employed and entitled to full pay and benefits. The employer cannot unilaterally reduce pay or benefits during this period.
Common Mistakes
Template / Example
When to Get a Solicitor
If the contract does not contain a garden leave clause, if the employee objects, or if you want to offset garden leave against post-termination restrictions.
FAQ
Can an employee refuse garden leave?
If there is a contractual garden leave clause, the employee cannot refuse. Without a clause, the employee may argue they have a right to work during their notice period, particularly for roles where skills need maintaining.
Does garden leave count towards post-termination restrictions?
Courts may reduce the effective period of post-termination restrictions by the time spent on garden leave, particularly if the restrictions are otherwise on the long side. Some contracts expressly provide for this offset.
Let AccountsOS handle this for you
Our AI generates UK-compliant contracts and guides you through every step. From £10/month.
Get Started FreeThis is guidance, not legal advice. Consult a solicitor for complex matters.
View all how-to guides