Garden Leave

Garden leave is a contractual arrangement in which an employee who has resigned or been given notice is required to remain away from the workplace for some or all of their notice period, while continuing to receive their full salary and contractual benefits. The employee remains legally employed by the organisation throughout this period. They are simply not required, and typically not permitted, to attend work, access systems, or engage with clients, colleagues, or competitors. The term originates from the idea that the employee is free to spend their time at home, tending to their garden, while the organisation continues to pay them.

What is the purpose of garden leave from an HR perspective?

The primary purpose of garden leave is to prevent any organisational harm. When an employee with access to sensitive information, key client relationships, or strategic knowledge decides to leave, in most cases to join a competitor, the organisation has a legitimate interest in ensuring that the individual cannot use their final weeks in post to cause commercial harm. Garden leave gives HR a mechanism to honour the notice period contractually while physically and operationally separating the employee from the business. It also allows the organisation time to manage the transition by briefing clients, redistributing responsibilities, and beginning the search for a replacement without the complication of the departing employee remaining present and potentially disruptive in the team.

What contractual provisions does HR need in place to enforce garden leave?

HR must ensure that employment contracts, particularly for senior roles, contain an express garden leave clause that gives the organisation the right to require the employee to remain away from work during their notice period while continuing to pay them. Without this clause, the organisation could be exposed to a wrongful dismissal claim. HR should also ensure that the contract specifies what the employee is and is not permitted to do during the garden leave period, including restrictions on contacting clients, accessing company systems, and working for another employer. 

What are HR's responsibilities toward an employee on garden leave?

Although the employee on garden leave is absent from the workplace, their employment continues in full, and HR's obligations toward them do not diminish. The organisation must continue to pay their salary, maintain their contractual benefits, and honour any existing entitlements. HR should also ensure that the employee has clarity on what is expected of them during the period, such as what they are and are not permitted to do, who their point of contact is within the organisation, and how any outstanding work or handover responsibilities will be managed. 

When should HR consider garden leave over other departure management options?

Garden leave is not the default response to every senior departure, and HR should apply it only for certain roles. It is most appropriate when the departing employee is moving to a direct competitor, holds commercially sensitive information that could be used against the organisation during the notice period, or where their continued presence in the workplace would be destabilising for the team or the business. Where none of these factors is present, HR may find that a standard working notice period, or a negotiated early release, better serves the organisation and the individual. Garden leave carries both a direct financial cost and potential reputational implications, and HR should be able to articulate clearly why it has been applied in each specific case rather than treating it as a routine procedural step.

Garden leave is a legitimate and sometimes necessary mechanism, but its value lies in being applied deliberately, with a clear rationale and proper contractual foundation

Garden leave is a contractual arrangement in which an employee who has resigned or been given notice is required to remain away from the workplace for some or all of their notice period, while continuing to receive their full salary and contractual benefits. The employee remains legally employed by the organisation throughout this period. They are simply not required, and typically not permitted, to attend work, access systems, or engage with clients, colleagues, or competitors. The term originates from the idea that the employee is free to spend their time at home, tending to their garden, while the organisation continues to pay them.

What is the purpose of garden leave from an HR perspective?

The primary purpose of garden leave is to prevent any organisational harm. When an employee with access to sensitive information, key client relationships, or strategic knowledge decides to leave, in most cases to join a competitor, the organisation has a legitimate interest in ensuring that the individual cannot use their final weeks in post to cause commercial harm. Garden leave gives HR a mechanism to honour the notice period contractually while physically and operationally separating the employee from the business. It also allows the organisation time to manage the transition by briefing clients, redistributing responsibilities, and beginning the search for a replacement without the complication of the departing employee remaining present and potentially disruptive in the team.

What contractual provisions does HR need in place to enforce garden leave?

HR must ensure that employment contracts, particularly for senior roles, contain an express garden leave clause that gives the organisation the right to require the employee to remain away from work during their notice period while continuing to pay them. Without this clause, the organisation could be exposed to a wrongful dismissal claim. HR should also ensure that the contract specifies what the employee is and is not permitted to do during the garden leave period, including restrictions on contacting clients, accessing company systems, and working for another employer. 

What are HR's responsibilities toward an employee on garden leave?

Although the employee on garden leave is absent from the workplace, their employment continues in full, and HR's obligations toward them do not diminish. The organisation must continue to pay their salary, maintain their contractual benefits, and honour any existing entitlements. HR should also ensure that the employee has clarity on what is expected of them during the period, such as what they are and are not permitted to do, who their point of contact is within the organisation, and how any outstanding work or handover responsibilities will be managed. 

When should HR consider garden leave over other departure management options?

Garden leave is not the default response to every senior departure, and HR should apply it only for certain roles. It is most appropriate when the departing employee is moving to a direct competitor, holds commercially sensitive information that could be used against the organisation during the notice period, or where their continued presence in the workplace would be destabilising for the team or the business. Where none of these factors is present, HR may find that a standard working notice period, or a negotiated early release, better serves the organisation and the individual. Garden leave carries both a direct financial cost and potential reputational implications, and HR should be able to articulate clearly why it has been applied in each specific case rather than treating it as a routine procedural step.

Garden leave is a legitimate and sometimes necessary mechanism, but its value lies in being applied deliberately, with a clear rationale and proper contractual foundation