By Team SalaryCalculate · 10/7/2025
Garden Leave During Redundancy: Rights, Pay, and Restrictions
Garden leave during redundancy is when your employer tells you not to come to work during your notice period, but you remain employed and continue receiving your full salary and benefits. This arrangement is common in redundancy situations, especially for senior employees or those with access to sensitive information.
While garden leave can seem like a paid holiday, it comes with specific rights, obligations, and restrictions that you need to understand. This comprehensive guide covers everything you need to know about garden leave during redundancy, from your legal rights to practical strategies for making the most of this transition period.
What Is Garden Leave?
Garden leave is a period where you're still employed but not required to attend work. You continue to receive your full salary, benefits, and remain bound by your employment contract, but you're not expected to perform your normal duties.
The term 'garden leave' comes from the idea that you might spend time in your garden, but in reality, it's a strategic business decision. Employers use garden leave to:
• Protect confidential information and trade secrets
• Prevent you from immediately joining competitors
• Avoid potential disruption to ongoing projects
• Maintain professional relationships during the transition
Your Rights During Garden Leave
During garden leave, you retain all your normal employment rights. This is crucial to understand because you're still an employee, not unemployed. Your key rights include:
Right to Full Pay and Benefits
You're entitled to your full salary, bonuses, commission, and all contractual benefits during garden leave. This includes:
• Your normal salary or wages
• Pension contributions (both employer and employee)
• Health insurance and other benefits
• Annual leave entitlement (if applicable)
Your employer cannot reduce your pay during garden leave unless your contract specifically allows it. If they try to do so, you may have a claim for breach of contract.
Right to Time Off for Job Hunting
You have the right to reasonable time off to look for new employment or arrange training. This is a statutory right that applies during garden leave, just as it does during normal notice periods.
The amount of time you can take depends on your circumstances, but typically ranges from a few hours to a day per week. You must give reasonable notice to your employer when you want to take this time off.
Right to Redundancy Pay
Garden leave doesn't affect your entitlement to redundancy pay. You'll still receive your full statutory redundancy pay based on your age, length of service, and weekly pay (capped at £719 per week as of April 2025). Use the redundancy severance calculator to understand your full redundancy package.
Restrictions During Garden Leave
While garden leave gives you freedom from work duties, you're still bound by your employment contract. This means several important restrictions apply:
Non-Compete Restrictions
You cannot start work for a direct competitor during garden leave. This restriction is designed to protect your employer's business interests and confidential information. The exact scope depends on your contract, but typically includes:
• Working for competitors in the same industry
• Setting up a competing business
• Poaching clients or colleagues
• Using confidential information for personal gain
Confidentiality Obligations
You must maintain confidentiality about all company information, including:
• Trade secrets and proprietary information
• Client lists and business relationships
• Financial information and business strategies
• Employee information and internal processes
Availability Requirements
You must remain available if your employer needs you. This might include:
• Answering questions about ongoing projects
• Handing over responsibilities to colleagues
• Attending meetings or calls if required
• Returning company property when requested
Making the Most of Garden Leave
Garden leave can be a valuable opportunity to transition smoothly to your next role. Here's how to make the most of this time:
Job Hunting Strategy
Use your time off for job hunting effectively:
• Update your CV and LinkedIn profile with recent achievements
• Network with industry contacts and former colleagues
• Research companies and roles that interest you
• Practice interview skills and prepare examples
Financial Planning
Use this time to plan your finances carefully:
• Calculate your full redundancy package and plan your budget
• Consider your options using the redundancy vs resignation calculator to understand different scenarios
• Review your pension options and retirement planning
• Check your eligibility for benefits and support
Professional Development
Use your garden leave to enhance your skills:
• Take online courses or certifications relevant to your field
• Attend industry events and networking sessions
• Practice new technologies or software
• Read industry publications and stay updated on trends
Garden Leave vs Other Options
Understanding how garden leave compares to other redundancy options can help you make informed decisions:
Garden Leave vs Working Notice
Garden leave gives you more freedom to job hunt and prepare for your next role, while working notice allows you to maintain relationships and complete projects. Consider which approach suits your situation better.
Garden Leave vs Payment in Lieu
Payment in lieu of notice (PILON) means you receive a lump sum and leave immediately. Garden leave spreads the payment over time and maintains your employment status. Consider the tax implications and your immediate financial needs.
Garden Leave Comparison Table
| Aspect | Garden Leave | Working Notice | Payment in Lieu |
|---|---|---|---|
| Work Required | No | Yes | No |
| Pay Schedule | Regular salary | Regular salary | Lump sum |
| Job Hunting Time | Full time | Limited | Full time |
| Employment Status | Active employee | Active employee | Former employee |
| Benefits Continuation | Yes | Yes | No |
| Restrictions | Non-compete | Work duties | None |
Common Garden Leave Scenarios
Every garden leave situation is different, but here are some common scenarios and how to handle them:
Scenario 1: Immediate Garden Leave
If you're put on garden leave immediately, focus on job hunting and networking. Use the time productively but remember you're still bound by your contract. Don't start work for competitors or breach confidentiality agreements.
Scenario 2: Partial Garden Leave
Some employers allow partial garden leave, where you work reduced hours or specific days. This can be a good compromise that allows you to maintain some income while having time for job hunting.
Scenario 3: Negotiating Garden Leave Terms
You might be able to negotiate better garden leave terms, especially if you have valuable skills. Consider discussing redundancy settlement negotiation strategies with your employer to get the best possible terms.
Frequently Asked Questions
Can I refuse garden leave?
You can't refuse garden leave if it's part of your contract or if your employer has the right to require it. However, you can negotiate the terms, such as the duration or any restrictions. If you're unhappy with the arrangement, discuss it with your employer or seek legal advice.
Do I have to stay at home during garden leave?
No, you don't have to stay at home. You can travel, pursue hobbies, or do anything else you want, as long as you don't breach your contract restrictions. You just can't work for competitors or use confidential information.
Can I start my own business during garden leave?
This depends on your contract and the nature of your business. If it's not competing with your employer, you might be able to start it. However, you cannot use confidential information or poach clients. Check your contract and consider seeking legal advice if you're unsure.
What happens if I breach garden leave restrictions?
Breaching garden leave restrictions could result in disciplinary action, legal action, or termination of your employment. You might also lose your redundancy pay and benefits. It's important to understand and follow all restrictions carefully.
Next Steps
Understanding your garden leave rights and restrictions is crucial for making the most of this transition period. Use this time wisely to plan your next career move while protecting your interests and maintaining professional relationships.
Remember to:
• Know your rights and don't be afraid to assert them
• Use your time off for job hunting and professional development
• Follow all contract restrictions to protect your interests
• Seek professional advice if you're unsure about your rights
Garden leave can be a valuable opportunity to transition smoothly to your next role. Make the most of it by staying informed, planning ahead, and protecting your interests throughout the process.
