UAE Labour Law: Can your employer put you on 'garden leave' during your notice period?

Dubai: You have resigned from your job and are ready to serve your notice period. But just days later, your employer tells you to stop coming to work and return all company property.

Does this mean your notice period has ended? Will you still receive your salary? And can you demand your end-of-service benefits immediately?

Under the UAE Labour Law, employers can ask employees not to report to work during their notice period, an arrangement commonly known as garden leave. However, this does not automatically end the employment contract or remove the employer's obligation to pay the employee.

A Gulf News reader facing a similar situation wrote in seeking clarification about his rights.

Reader's question: Can my employer end my notice period early?

“I have been working for a private company in Dubai since 2022 and recently resigned with a 60-day notice period. However, after serving just nine days, my manager instructed me to stop reporting to work and return all company assets.

“I also have 24 days of unused annual leave and outstanding concerns about unpaid incentives. Despite repeated emails, HR and management have not provided clear answers.

“Since my employer no longer requires me to work, can I leave before the 60-day notice period ends? Can my unused annual leave count towards my notice period, and should my final settlement be paid within 14 days? What can I do if my employer continues to ignore my concerns?”

Gulf News raised the reader's questions with Thenji Moyo, partner and head of employment law at Gateley UK, who explained the employee's rights under Federal Decree-Law No. 33 of 2021, also known as the UAE Labour Law.

Can my employer ask me not to work during my notice period?

Yes, according to Moyo, employers have different options for managing an employee's notice period, including allowing them to continue working as usual or placing them on garden leave.

What is garden leave?

“Garden leave is when during the notice period the employee is not required to attend the office or perform work. However, he or she remains an employee of the company and is bound by the terms of their employment contract until the contract termination date,” Moyo explained.

During this period, employees continue to receive their contractual entitlements, including their salary and allowances, while annual leave entitlements continue to apply.

Garden leave is commonly used when an employee has access to sensitive company information, client relationships or confidential business data. It allows employers to restrict access to such information before the employee officially leaves.

Does garden leave mean my notice period ends early?

Being told not to report to work does not automatically shorten your notice period.

Under Article 43 of the UAE Labour Law, employees and employers must comply with the notice period agreed upon in the employment contract.

However, both parties can mutually agree to an earlier termination date, provided the employee's entitlements are settled in accordance with the law.

This means that if an employee has a 60-day notice period but is asked to stop working after nine days, the employment contract does not automatically end on the ninth day.

When must my employer pay my gratuity and final settlement?

Under Article 53 of the UAE Labour Law, employers must pay employees their outstanding contractual and statutory entitlements within 14 days of the employment contract's termination date.

This is an important distinction: the 14-day deadline does not automatically begin when an employee is placed on garden leave.

If the employee remains employed throughout the agreed notice period, the deadline is calculated from the date the contract ends.

Can I use my unused annual leave during the notice period?

According to Moyo, some employment contracts allow employers to require employees to take annual leave during their notice period.

Under Article 29 of the UAE Labour Law, employers may determine annual leave dates subject to the applicable legal requirements, including advance notification. However, unused annual leave does not automatically reduce the contractual notice period.

Moyo also explained that employees are entitled to payment for accrued but unused annual leave when their employment ends.

Under Article 29(9), this payment is calculated based on the employee's basic wage.

For the reader with 24 days of unused annual leave, this means the leave balance cannot simply be treated as a replacement for part of the 60-day notice period without an appropriate arrangement.

Can I file a labour complaint against my employer?

If the employer fails to resolve the matter internally, employees can escalate their complaint to the Ministry of Human Resources and Emiratisation (MOHRE) or the relevant free zone dispute authority, depending on their employment jurisdiction.

“Where an employer's lack of response leads to a loss of income or detriment, the employee can raise an internal grievance with the company's management,” Moyo said.

If the matter remains unresolved, the employee may pursue a formal labour complaint or legal action. Employees should also be aware of the applicable time limits for bringing employment claims.

The bottom line: If your employer tells you not to work during your notice period, it does not necessarily mean your employment has ended. You may still be entitled to your salary and other contractual benefits until the official termination date, while your final settlement must be paid within the legally prescribed period.

This article was published in 2024 and has been updated since.