What Is Gardening Leave?

Gardening leave is a period during which you remain employed and are paid your salary but are required not to come to work. Instead of working your notice period, you're paid to stay home. Hence the term "gardening leave"—you have time to work in your garden or do other personal activities.

It's a middle ground between immediate dismissal and requiring you to work your notice period. The employer wants you away from the office (to protect confidential information, prevent client contact, or avoid disruption), but they're willing to pay you during the notice period to achieve this.

From your perspective, gardening leave can be either a blessing or a trap, depending on the terms and your circumstances.

Gardening Leave vs Notice Pay

These are related but different concepts:

Notice Pay: This is payment in lieu of notice—a lump sum equal to the salary you would have earned during your notice period. Once you receive it, your employment ends immediately. You're free to work elsewhere.

Gardening Leave: This is payment during a specified period when you cannot work. Your employment continues during this period, but you're not required to attend work. At the end of the gardening leave period, your employment ends.

Example: Your notice period is three months. Rather than requiring you to work, your employer offers three months' gardening leave. You're paid your salary for three months, but you're not allowed to work elsewhere during this period. At the end of three months, employment ends.

Compared to notice pay, which ends immediately, gardening leave extends the period during which you cannot work for others.

Why Employers Use Gardening Leave

Employers impose gardening leave for several reasons:

Confidentiality Concerns: If you might take company information to a competitor, gardening leave prevents you accessing the office to collect data or contact clients.

Restrictive Covenant Protection: Gardening leave acts as an alternative to a post-employment non-compete. Instead of restricting what you can do after employment, it restricts what you can do during gardening leave.

Client Protection: If you're in a client-facing role, gardening leave prevents you from immediately contacting clients to take them to a competitor.

Operational Reasons: Some employers simply prefer you away from the office during the handover and transition period.

From the employer's perspective, gardening leave achieves these goals without the harshness of immediate dismissal. They pay, but they get control.

Gardening Leave in Settlement Agreements

Gardening leave often features in settlement agreements as an alternative to post-employment restrictive covenants. Instead of a 12-month non-compete clause, an employer might offer 6 months' gardening leave.

From your perspective, this has both pros and cons:

Pros:

You receive your salary during gardening leave
It's a defined, limited period (unlike restrictive covenants which can extend indefinitely)
After gardening leave ends, you're free to work anywhere with no restrictions
It's potentially more enforceable than a restrictive covenant (which must meet the "reasonableness" test)

Cons:

You cannot work elsewhere during the period, losing earning opportunities
Extended periods mean long unemployment before you can start new work
Gaps in employment history might concern future employers
Psychologically, being unable to work can feel limiting and demoralising

Negotiating Gardening Leave Terms

If your settlement includes gardening leave, negotiate terms carefully:

Duration: Push for the shortest reasonable period. Six months' gardening leave costs the employer significantly less than a 12-month period. Negotiate from their perspective: what do they genuinely need protection from? If it's immediate client contact, three months might suffice. If it's transition to a competitor, six months might be their minimum.

Permitted Activities: This is crucial. Gardening leave doesn't have to mean complete inactivity. Negotiate to permit:

Work on your own projects or business
Volunteer work or charitable activities
Professional development, courses, qualifications
Consulting work in non-competitive areas
Starting a business (in non-competitive sectors)

The key is ensuring you can be productively occupied. This protects your mental health and career development, and it's often acceptable to the employer if the restrictions are clear.

Compensation for Restrictions: If the gardening leave period is extended or particularly restrictive, negotiate for additional compensation or benefits. For example:

Retraining or professional development funding
Outplacement services to prepare for new employment
Career coaching or mentoring
Continued health insurance and benefits

Garden Leave vs Notice Pay

In your settlement negotiation, you might be offered a choice between:

Option A: Six months' notice pay (lump sum, employment ends immediately, you can work elsewhere immediately)

Option B: Six months' gardening leave (paid throughout, cannot work for others, employment ends after six months)

From a financial perspective, they're equivalent. But Option A is more valuable in career terms—you can immediately start new employment. Option B leaves you unable to work for six months.

If offered a choice, notice pay is generally preferable unless:

You genuinely need an extended break
You're not ready to start new work immediately
The permitted activities clause allows productive work
The gardening leave period is short (three months or less)

What Happens at the End of Gardening Leave

Once gardening leave ends, your employment ends. Your settlement should specify:

The exact end date of gardening leave
That employment ends automatically on that date (or requires notice)
What benefits or employment rights you'll have during gardening leave
Holiday entitlements during the period
What happens if the employer wants to end gardening leave early (can they pay instead?)

Clarify these points to avoid disputes.

Breach of Gardening Leave Provisions

What if, during gardening leave, you violate the restrictions? For example, you contact a client despite the restrictions, or you start working for a competitor?

Employer's Remedies: If you breach gardening leave provisions, the employer could:

End gardening leave early and declare your employment terminated
Sue for breach of contract (though damages would be limited)
Seek an injunction to prevent the breach

Your Position: Clearly understand what activities are prohibited. Ask for clarity in the settlement if the restrictions are vague.

Early Exit: Negotiate whether you can exit gardening leave early with the employer's consent. For example: "Either party may agree to end gardening leave early with one week's notice."

Making the Most of Gardening Leave

If you agree to gardening leave, use it productively:

Invest in professional development or qualifications
Work on a personal project or business idea
Volunteer for causes you care about
Prepare thoroughly for next career steps
Rest and recover from employment stress (if applicable)

Gardening leave can be a valuable opportunity if you use it wisely. However, negotiating to avoid it altogether (in favour of notice pay or a shorter period) is usually preferable if you want to move quickly to new employment.

Tax and Benefits During Gardening Leave

Salary paid during gardening leave is taxable—it's ordinary employment income. Your National Insurance and income tax are due as normal.

If you're planning to claim benefits such as Jobseeker's Allowance after employment ends, note that benefits are usually not available while you're still employed. Gardening leave keeps you employed, so benefits might not be available. Ask an advisor about your benefits position.

Gardening Leave and Settlement Agreements