أسئلة وأجوبة
What are the effects of the non-compete clause in case of resignation?
Hi
I have a question regarding my UAE employment contract.
I have a non-compete clause with my current employer and have received an offer/contract from a new employer in the same industry.
Please, can you kindly advise if this is at all enforceable?
I feel the period is too long and the scope of work is too misguiding to be enforceable by any court system.
"1) the employee shall not during the term of the contract for a period of 2 years after termination for any reason, be an owner, partner, or employee of any business/employment within the UAE, in the aviation/flight support services industry which may compete with the business of the employer or any of its subsidiaries, regardless of the grounds for termination.
2) The employee shall not compete/assist anyone to compete with the employer for 2 years in any way that harms the employer's business.
3) liable in case the employer interests suffered any materiality or moral damages as a result of this breach, and the employer is entitled to claim compensation which he deems fit."
Although the law allows such conditions to be included in the employment contract, it is difficult to implement them.
Please note the legal provisions applicable in this context:
Article 127 of the Labour Law provides as follows:
"If the work entrusted to the worker allows him to know the employer's clients or to know the secrets of his work, the employer may require the worker not to compete with him or participate in any competing project after the end of the contract..."
Article 909 of the UAE Civil Code provides as follows:
1. If the worker performs a job that allows him to have access to work secrets or to know the customers of the establishment, the parties may agree that the worker may not compete with the employer or participate in work that competes with him after the end of the contract
2. However, this agreement shall not be valid unless it is restricted by time, place, and type of work to the extent necessary to protect the legitimate interests of the employer.
3. The employer may not adhere to this agreement if he terminates the contract without the worker having any justification for it, nor may he invoke the agreement if he signs something justifying the termination of the contract by the worker."
The following must be met in order to implement the non-competition clause:
1. The non-competition clause must be necessary to protect the legitimate interests of the employer.
2. The restriction must be limited in terms of time, place, and type of work.
I hope the above has provided you with a logical explanation.
Thank you.
