Can you work elsewhere during paid garden leave in UAE? What law says

Question: My company terminated my employment three weeks ago and instructed me not to report to work during my three-month notice period. They are treating this period as paid garden leave, but the condition is that I am not allowed to work for another company during this time. I have received another job opportunity. Does the company have the right to impose this restriction, especially since they have already terminated me? What steps can I take to have this condition withdrawn? Please advise.

Answer: Yes, the company has the right to request that you not work for another employer during your three-month notice period, as they are paying you for that time. During these three months, you are still considered to be within the notice period agreed upon between both parties, in accordance with Article (43) of the UAE Labour Law.

As per Article (43): “The employment contract continues to be valid throughout the notice period referred to in this Article and is terminated upon expiry of such period. The worker shall be entitled to his full wage for that period according to the last wage he was receiving and shall work during that period if the employer requests the same from him.”

The party that fails to comply with the notice period must compensate the other party with a payment known as a notice period allowance, even if the lack of notification does not cause any damage. This compensation shall be equal to the employee’s wage for the full notice period or the remaining part thereof.

You do, however, have the right to mutually agree with your employer to waive or shorten the notice period. If the company does not agree to such an exemption, you are legally required to comply with the original notice period terms, as stated in the same Article (43): “It may be agreed upon to exempt from the notice period condition or to reduce its period while preserving all the rights of the worker for the notice period agreed upon in the employment contract, provided that the notice period is the same for both parties.”