أسئلة وأجوبة
I signed a contract as a freelancer with a company. Can they make me sign a non-compete clause in the contract?
Hi,
I have been appointed to work as a freelancer with a registered company in the UAE.
The company strictly advised me not to work or engage with a third party during my probation for the first six (6) months period, as a way of submitting to their rules.
It is instructive to highlight that I'm on my own visa.
Do they have to reserve this right of non-compete clause in the contract?
Please advise
Hello,
Under UAE law, the principle of "the contract is the law of the parties" applies, meaning that the terms agreed upon in the contract are binding on both parties, provided they do not conflict with public policy or mandatory legal provisions.
If you have signed a contract that includes a non-compete clause, even if you are under your own visa, you are generally obligated to comply with those terms.
However, non-compete clauses in the UAE must meet specific requirements to be enforceable.
According to the UAE Labor Law No. 33 of 2021, such clauses must be reasonable in scope, duration, and geographical area and should not unjustly restrict the worker's ability to find alternative employment.
Since you are working as a freelancer, the enforceability of the non-compete clause may also depend on your role and whether the clause is considered fair and necessary to protect the company's legitimate interests.
If you need further assistance in reviewing the contract, feel free to reach out.
If you're working on your own freelance visa, you're essentially your own employer, and you're not technically employed by the company in the traditional sense.
This means that the company can request that you follow certain guidelines or restrictions during your time working with them (such as not working for third parties during your probation).
However, they may not have the same legal authority to impose restrictive covenants as they would for full-time employees on a company-sponsored visa.
Non-compete clauses are legally enforceable in the UAE but are subject to specific conditions set out by the UAE Labour Law and the UAE Civil Code.
If the company has strictly instructed that you cannot engage with any third parties during the first 6 months of your probation, this may be seen as a form of restriction on your freelance work.
While this isn't the same as a full non-compete clause (which typically prevents you from working for competitors after your contract ends), it may still be enforceable if it was explicitly stated in your contract or in a written agreement.
Review the exact wording of the agreement between you and the company. Look for any clauses that mention exclusivity, non-compete, or non-solicitation restrictions during or after the probation period.
For further assistance kindly share your Whatsapp number
Welcome.
In the UAE, a non-compete clause is not legally required in contracts unless it pertains to specific roles involving sensitive information.
If the company requires you not to work with a third party during your probation period, this clause should be included in the contract. If it is not mentioned, it may be difficult to enforce legally.
Our office specializes in employment and contract-related matters, and we can assist you in reviewing your contract and providing legal advice regarding your rights and obligations. If you need further consultation, feel free to contact us.
If my response was helpful, please consider rating our service positively to help us improve the quality of our services
We are honored to provide you with specialized legal support for your case.
If you have any further inquiries regarding your matter, we would be happy to assist you.
Yes, as there is a temporary employment contract (loan), each party is bound by the contractual terms in accordance with the principle of 'the contract is the law of the parties,' and this applies in the case of a loan.
While a company may have a non-compete clause in its contracts, especially for employees, the enforceability of such a clause for freelancers can be more complex.
As a freelancer, you are typically considered an independent contractor, and the traditional employer-employee relationship doesn't strictly apply.
However, the company might argue that during your probationary period, you are learning about their business processes, client base, and confidential information.
They might use this as justification for a limited non-compete clause, especially if you have signed a contract with them.
If you need further clarification, you may ask or you may share your WhatsApp number.
Thank you for reaching out with your question regarding the non-compete clause in your freelance contract.
Generally, a company in the UAE may include a non-compete clause in a contract to protect its interests, even if you are working under your own visa.
However, the enforceability of such a clause depends on specific factors, such as the nature of the work, the scope, and duration of the restriction, and whether it is necessary to protect legitimate business interests.
To provide you with precise guidance and review the terms of your contract, I recommend a detailed discussion.
Feel free to reach out to me via WhatsApp or phone to discuss your situation further and explore your legal options.
Best regards,
Suhail Rana
