Can my former employer take legal action aginst me due a non-compete clause if I started a similar business?

Dear Y.,

Thank you for your inquiry.

Regarding your non-compete clause and the threats from your former employer:

Non-Compete Clause: Non-compete clauses in the UAE are enforceable but must meet specific conditions (reasonable duration, geographic scope, and related to your work).

If your new business doesn’t directly compete with your former employer or the clause is too broad, it may not be enforceable.

Legal Threats: If the non-compete clause is unenforceable or doesn’t apply to your new business, the threats from your former employer may not have legal grounds.

You have the right to continue operating if there is no clear violation.

Recommended Actions:

Review the non-compete clause to determine if it’s enforceable.

Keep records of all communication from your employer.

Consider responding formally, clarifying your position (after reviewing the contract or with legal advice).

If legal action is taken, the court will assess the clause’s enforceability.

If you need further assistance, feel free to contact me.

Best regards,

Mohammed Salah

Legal Consultant

Hello,

If your business operates in the same market or directly competes with your previous employer, then the non-compete clause may be enforceable.

A non-compete clause must be reasonable in terms of its duration, geographical scope, and the type of business it prohibits you from engaging in.

The non-compete must relate to a specific business that directly competes with the former employer. If your contract includes such a clause, you need to assess whether the terms are reasonable and whether your current online business falls within the boundaries of what is prohibited by the clause.

For a detailed discussion kindly share your Whatsapp number.

The requirement of non-competition is difficult to achieve in terms of time, place, and adequacy of the previous provisions accompanied by the realization of the requirement of non-competition unless a customer is transferred from the previous company to your company.

In case of any further inquiry, contact us by phone to to help you.

Under UAE law, the enforceability of a non-compete clause depends on factors such as duration, geographical scope, and the nature of the business.

If the clause does not comply with legal requirements, it may not be binding.

Hello,

We are pleased to assist you.

Regarding your inquiry, we need to review the non-compete clause agreed upon between you and your previous employer, along with details regarding the emirate where your previous company was located, the emirate where your new business license was issued, and the date of issuance.