HR considerations
UK employment law and best practice
This template is designed to support the process, but the document should be used alongside the relevant HR procedure and applied to the circumstances of the individual case.
Garden leave is a contractual arrangement under which an employee remains employed and normally continues to receive their contractual pay and benefits while being instructed not to work during their notice period. Employers should check the employee's contract before placing them on garden leave and ensure that the arrangements are consistent with the contractual terms.
Contractual right to garden leave
The employer should check whether the contract contains an express garden leave provision. Where there is no express provision, the employer should take care before assuming that it can simply require an employee not to work for the whole of their notice period. The contractual position should be assessed on the facts of the case.
Pay and benefits
An employee on garden leave remains employed during the notice period and will normally continue to receive their contractual salary and applicable benefits. The employer should confirm the arrangements clearly and ensure payroll continues to operate correctly.
Confidentiality and competing employment
Employees remain bound by applicable contractual obligations during garden leave. Depending on the contract, this can include confidentiality, intellectual property and restrictions on working for another organisation during the notice period.
Employers should distinguish between restrictions that apply during employment and post-termination restrictive covenants. Any post-termination restriction should be reviewed separately for enforceability and proportionality.
Holiday during notice
Holiday continues to accrue during the notice period. Employers may require an employee to take holiday during their notice period where the contractual and statutory requirements for doing so are satisfied.
Resignation and notice
Where an employee resigns, the employer should confirm the contractual notice period and the date on which employment will terminate. Garden leave does not bring the employment relationship to an immediate end; the employee remains employed until the termination date unless the parties agree otherwise or another lawful basis for earlier termination applies.
ACAS guidance
ACAS explains that garden leave means an employee does not work during their notice period but remains employed and continues to receive their usual pay and benefits. Employers should follow the terms of the employment contract when placing an employee on garden leave. https://www.acas.org.uk/final-pay-when-someone-leaves-a-job/notice-periods
Data protection and access
Employers may need to restrict access to systems and information during garden leave, particularly where the employee has access to confidential or commercially sensitive information. Any restrictions should be managed appropriately and consistently with the employee's contractual position and data protection requirements.