What Is Garden Leave UK? An Employers’ Guide 

When an employee leaves your business, either voluntarily or through termination of employment, the transition period can be difficult to traverse. As a business owner or HR professional, protecting the business is a key objective, but you also need to handle the exit professionally. 

This is where garden leave comes in. 

Far from being a paid holiday, garden leave or “notice period leave” as it’s also called, allows you to safeguard sensitive company information, protect client relationships and ensure a smooth handover when a key team member is on their way out. 

Want to know more? We’ve got you covered. We’ll cut through the noise and show you how you can utilise garden leave to protect your business. 

What is garden leave UK?

Okay, let’s start with the basics, by considering what is garden leave UK? Despite what the name suggests, it actually has nothing to do with gardening. It’s essentially when an employee, after resigning or being terminated, is asked to stay away from the workplace during their notice period. Although the employee continues to get paid during this time, they are not required to work. It’s also important to remember that they are also not allowed to start a new job. 

Think of it as keeping a player on the bench. They’re still part of the team (and paid like it), but they aren’t on the field making plays…or passing your playbook to the opposition.

But it’s not  for everyone. You probably don’t need to put a junior admin assistant on notice period leave. This is a tool for your high-stakes players. Some situations when it might be worth utilising it include: 

• Senior Executives: Leaders who hold the keys to your strategic roadmap and sensitive data.
• Sales and Accounts: People with direct access to your client lists. If they are leaving for a competitor, you want to cut off their access to your database immediately to protect those relationships.
• The “competitor jump”: Any role where the employee is leaving to join a direct rival. Notice period leave keeps them out of the market for the duration of their notice, meaning their knowledge is slightly less fresh by the time they start the new job.

Why do employers use garden leave?

It’s a good question; why would you continue to pay someone to not work when you could still make use of their skills? The simple answer is because it protects your business. 

Notice period leave can be used as a proactive way to safeguard your business during a sensitive transition. Here are a few reasons why many business owners and HR professionals opt to put exiting employees on garden leave:

• Protects sensitive information: Employees often leave with access to financial data, strategic plans, client insights and product roadmaps. Notice period leave cuts off access immediately, preventing intentional or accidental leaks that could benefit competitors.
• Safeguards client relationships and IP: Client trust is one of your most valuable assets. Paying your people to not work their notice period creates a “cooling-off” period that lets you transfer relationships smoothly and protects your intellectual property by ensuring the departing employee isn’t contributing to new projects.
• Stops an immediate jump to a competitor: A departing employee walking straight into a competitor’s office is a major risk. Garden leave keeps them under contract during the notice period, making their knowledge less current—and less valuable—by the time they start elsewhere.
• Maintains workplace stability: Departures can cause distraction, negativity or even poaching attempts. Asking employees to not work during their notice period removes the potential disruption, allowing for a clean, controlled transition and keeping the team focused and morale high.

How does garden leave work: The step-by-step process

So, you’ve decided garden leave is the right move. How do you actually make it happen? 

The good news is that once you have the legalities in order, implementing notice period leave should be a straightforward, professional process. No drama, just clear communication. 

Here’s a five-step process to help you as a business owner or HR professional action a compliant and smooth exit period. 

1. Check the contract: Before you do anything, pull up the employment contract. Does it have a garden leave clause? If yes, you’re in a strong position. If not, you may need to negotiate with the employee to reach an agreement.
2. Hold a formal meeting: Once the end of employment is confirmed, arrange a private meeting. Explain your decision to place them on notice period leave and refer to the relevant clause in their contract.
3. Put it in writing: Follow up the meeting with a formal letter. This letter should clearly state that they are on garden leave, the start and end dates and their obligations during this period.
4. Cut off access: On their last day in the office, professionally revoke their access to all company systems, email and physical premises. This is a critical step in protecting your data.
5. Manage the handover: Ensure you have a plan to transfer their responsibilities and client contacts. They should remain available to answer questions to help with this transition, as stipulated in the contract.

How to keep garden leave compliant

So, you want to use garden leave to protect your business. Smart move. But before you send anyone home to tend their roses, you need to make sure your legal foundations are rock-solid. 

This isn’t about ticking boxes; it’s about making sure your best-laid plans don’t backfire and land you in a legal mess. Here’s what you need to know to stay on the right side of UK HR employment law.

The golden rule: Get it in the contract

In the UK, you generally can’t force an employee onto garden leave unless you have a specific, well-written clause in their employment contract.

Why? Because employees have an implied “right to work.” Taking that away, even while paying them, can be seen as a breach of contract on your part. If you breach the contract first, the employee might be able to claim constructive dismissal. This could make all those other protective clauses you rely on—like non-compete agreements—completely unenforceable.

A solid garden leave clause gives you the express right to ask an employee to stay home during their notice period while remaining on the payroll. It’s your legal trump card.

Reasonableness is your best defence

But having a clause isn’t a blank cheque to do whatever you want. To be enforceable, the terms of garden leave must be reasonable. If you’re challenged in court, a judge will look at whether the restrictions you’ve imposed are genuinely necessary to protect your legitimate business interests.

Two key areas where reasonableness is tested are:

• Duration: The length of the garden leave should be appropriate for the employee’s role and the risk they pose. A three-month notice period on garden leave for a senior executive with access to your 5-year strategy is likely reasonable. The same period for a junior team member? Probably not. An excessively long period can be viewed as an unfair “restraint of trade,” making the clause invalid.
• Terms: You must continue to provide the employee with their full salary and all contractual benefits—pension contributions, health insurance, car allowance, the lot. Failing to do so is a clear breach of contract from your side, giving the employee a free pass to walk away from their obligations.

Think of it this way: garden leave is a shield to protect your business, not a stick to punish a departing employee. Keep it fair, keep it reasonable and you’ll keep it enforceable.

Best practices for employers

It’s clear that garden leave can be a game changer when it comes to protecting your business. But if you want to ensure it works for you, you need to have a solid game plan in place. 

So let’s move past the theory and look at best practices for businesses who want to utilise notice period leave. 

Include garden leave clauses in employment contracts

For businesses, having a bullet-proof employment contract is always important. But don’t forget to add a garden leave clause in. This should be clear, specific and ready for action when you need it most.

We don’t like to overcomplicate things at Employment Hero, so here’s how you can draft a clause in your contract that covers your business. 

• Be explicit: Don’t be vague. The clause must clearly state your right to place an employee on notice period leave for all or part of their notice period. It should specify that you can require them to stay away from the office, have no contact with clients or colleagues and return all company property.
• Keep it reasonable: Courts can throw out clauses they see as an unfair “restraint of trade.” The restrictions must be necessary to protect legitimate business interests. A 12-month garden leave for a junior employee won’t fly. Align the potential duration with the employee’s seniority and access to sensitive information.
• Cover all your bases: Remember to state that the employee will continue to receive their full salary and all contractual benefits. This shows you’re holding up your end of the bargain, which is crucial for the clause to be enforceable.

Manage the employee, not just the process

It’s never easy when someone leaves your business and emotions sometimes run high. But try not to forget that this isn’t just a process, people are involved too. The good news is that navigating this is relatively simple, don’t just manage the process, manage the employee.

Here’s how you can do just that:

• Set clear expectations in writing: Once you’ve made the decision, send a formal letter. Reiterate their obligations: no starting a new job, no client contact and they must remain available for handover questions. This written record is your proof of a professional process.
• Control the handover: The employee holds valuable knowledge. Don’t let it walk out the door. Use this period to facilitate a structured handover. Schedule calls if needed to ensure their responsibilities are smoothly transferred to the team. You’re paying them, so it’s fair to expect their cooperation.
• Manage the narrative: Control how the exit is communicated to the rest of the team. You can simply state that the employee is leaving and that a transition plan is in place. This avoids gossip and keeps the team focused and motivated.

Take control of your exit strategy

Garden leave isn’t just some dusty HR policy or a legal hoop to jump through, it’s your insurance policy against lost data, poached clients and messy exits. When used correctly, it turns a potential vulnerability into a period of controlled transition.

We know it feels like a cost, paying someone to do nothing goes against every instinct you have. But compare that to the cost of a competitor getting your strategy six months early. It’s a no-brainer.

By implementing notice period leave, you’re not just protecting your bottom line; you’re setting a standard of professionalism. You’re showing your team that you value stability and that you take your business interests seriously. You get a smooth handover, a cooling-off period and the peace of mind that comes with knowing your intellectual property is safe.

Want to know more about how you can ensure your business has a solid employee exit strategy? Talk to our HR Advisory service, or book a demo today.