Garden leave

Employment continues during garden leave

Garden leave changes what an employee does during notice, not whether they are employed. They remain employed until the notice period ends and should continue to receive normal pay and contractual benefits. Their duties of confidentiality, fidelity and compliance with reasonable contractual instructions also continue.

This is different from payment in lieu of notice, where employment normally ends straight away. The Acas notice guidance sets out that distinction. Use the true employment end date for payroll, holiday, benefits and records rather than the day the employee stops attending work.

Check whether the arrangement is authorised

Read the contract before placing someone on garden leave. An express clause can give the employer authority, subject to its wording and reasonable use. Without one, seek agreement rather than assuming continued pay makes any restriction lawful.

Think about what the organisation is protecting, such as confidential information, customer relationships or an orderly handover. Restrictions should be proportionate to that need. A long or disputed period, or one that affects the employee's professional standing, may justify specific legal advice.

Holiday does not automatically disappear into garden leave. Deal with accrued leave under the contract and holiday rules, and say clearly whether any dates are agreed as annual leave.

Set access, duties and availability in writing

Confirm the garden-leave start and end dates, pay and benefits, holiday arrangements, and the employee's final employment date. State whether they must remain available, whom they should contact and whether any limited handover or other duties are required.

Also cover access to systems and premises, contact with colleagues or customers, company property and how changes will be communicated. Avoid vague instructions to “stay away”. One clear written plan lets the employee, manager, IT and payroll teams act consistently while the employment relationship continues.