Garden Leave During Redundancy: What It Means and Why It’s Used

November 19, 2025

To be made redundant means that your role no longer exists within a company. This is often due to cost-cutting measures, relocation, or a shift in focus to a new sector. If there is a decline in work in your sector of the business, this might lead to your role being made redundant.

The process of redundancy is often carried out in stages. First, employees might be offered the chance to take voluntary redundancy. This is often the first sign of instability within a company, so it could be an ideal opportunity to accept the offer and look for a new role.

Once the company knows who wants to take voluntary redundancy and who is left, they can then make final decisions about the workforce. After this point, they might choose to make compulsory redundancies to finalise their plans.

There can be some negative feelings around redundancy, particularly if the employer knows that an employee has rejected voluntary redundancy. In this case, they might decide to use something known as gardening leave. This is not the same as payment in lieu of notice, and it’s important that both the employer and the employee know how best to navigate this process.

Garden leave during redundancy

Garden leave is when an employer chooses to keep a person under an employment contract, but requests that they stay away from the workplace and don’t continue working for them.

For the employer, this means that they still have to pay the individual and ensure that they meet the requirements of their employment contract. If the garden leave extends the employee’s time working with the company into another year, this can also have an impact on notice requirements and redundancy pay.

For the employee, it means that they are still bound by their contract, but they are asked to step away from their role. They might have to relinquish access to company devices and stop accessing their email accounts. They will also be bound by any non-compete clauses that appear in their contract, so they won’t be able to have conversations with clients or suppliers.

There are lots of reasons that an employer might choose to place someone on garden leave, including to protect company secrets, to prevent animosity in the workplace. As an employee, it’s a good idea to approach this with a positive mindset. After all, you’ll have the opportunity to take time off work, start looking for a new job, and you’ll still be able to enjoy all of the benefits of a notice period and redundancy pay.

It’s also important that you pay close attention to the guidelines given to you by your employer during your garden leave. There is a risk you could lose access to your employment rights, including your redundancy payout, if you fall short of the expectations on you. 

Why is garden leave used during redundancy?

There are lots of reasons you might be offered garden leave during redundancy. The most common reason would be to protect the business interests of the company. If they are going through operational changes, they might want to be able to implement these without your knowledge. After all, you could very soon be joining one of their competitors, so the less you know, the better.

Garden leave can also be used to prevent interference during transitional periods. It allows the employer to restructure workforces without having to consider those employees who won’t be there for much longer.

It can also help to protect client and supplier relationships. Garden leave can often be sprung on employees so they don’t have a chance to steal clients before they go. You might also be prevented from accessing sensitive information, or seeing future business plans that might be of interest to competitors. 

What can I do during garden leave?

You are still technically employed by the company, and you could be called back at any time, but you are generally free to spend your time as you wish. You can start looking for another job, or you could take the time as a free holiday.

You’re still an employee, but you might not have access to the company site or digital resources. You don’t need to work, but you could be called on at any time. It’s not the same as a holiday, when an employer would be expected to leave you alone. You are still very much an employee, and you should keep this in mind.

Many people start looking for a new job while they are on garden leave, as it’s the perfect opportunity to spruce up your CV without the pressure. However, you should be aware that you can’t accept another role and start working, unless you have the approval of your current employer.

What can’t I do during garden leave?

While you are on garden leave, you are still technically employed. It’s not the same as paid leave, where your time is your own. You could be called back into the office at any point, so it’s best not to jet off on holiday straight away. If your employer decides to end your employment early and offer your payment in lieu of notice, this would be a different story, but until this happens, you should assume that you could be called back into the office at any time.

It’s a good idea to refer to your contract if you are unsure about what you can and cannot do. You may have been put on garden leave to prevent you from speaking to clients and suppliers, which might be in violation of a non-compete clause in your contract.

You should also be aware that you cannot start working for a new company without the approval of your existing employer. While it might be tempting to accept a role and hit the ground running, you need to wait until the end of your notice period, or you may have to forfeit your paid notice period.

If you’re facing redundancy or looking for your next opportunity, CMD Recruitment can help. Contact our team today or browse the latest vacancies to find your next role.