أسئلة وأجوبة
Employer says I can't work in the same emirate at a competitor after resigning. Is this correct?
Hello,
In my current job contract, I have a 30-day notice period. I have already submitted my resignation, but I want to resign early; it’s 5 days before the end of my notice period.
I requested early resignation and am willing to pay any liabilities in this matter.
However, my company is saying I can't work in the same emirate within two years at any competing similar facility, as per Labour Contract Law No. 33 of 2021.
Thank you for reaching out!
Since you have already served most of your 30-day notice period and are willing to settle any liabilities, your employer should ideally consider an early release.
However, regarding the restriction they mentioned, under UAE Labour Law No. 33 of 2021, non-compete clauses are enforceable only if they are limited in scope, duration, and geographical area and if they protect a legitimate business interest.
That being said, a two-year work restriction within the same emirate is quite broad and may not always be enforceable.
The validity of such a clause depends on how it is worded in your contract and whether your new role directly competes with your current employer’s business.
I can review your contract and advise you on whether the restriction is legally binding or if you have grounds to challenge it.
Feel free to reach out to me via WhatsApp or phone to discuss your options and the best way forward.
Best regards,
Suhail Rana
Dear questioner,
According to UAE Labour Law No. 33 of 2021, an employee has the right to request early termination of the notice period; however, this is subject to the employer’s approval, and you may be required to compensate for the remaining days.
Regarding the non-compete clause, Article 10 of the law states that an employer may impose a non-compete restriction for up to two years after contract termination, provided that the restriction is specific in terms of time, location, and nature of work and does not unfairly harm the employee’s career prospects.
You may challenge this clause if it is disproportionate to your role or excessively limits your professional opportunities. It is advisable to review your contract and seek legal consultation to protect your rights.
Mohamed Salah Shoeib
Legal Consultant
Dear Valued Employee,
Thank you for bringing this matter to our attention!
I appreciate your transparency regarding your resignation and request for early release. Allow me to address the key points of your situation professionally:
1. Notice Period and Early Release:
Your current contract stipulates a 30-day notice period, which you have largely fulfilled. Your request for early release, with a willingness to compensate for any liabilities, is noted.
As per UAE Labour Law (Federal Decree-Law No. 33 of 2021), such arrangements can be made if mutually agreed upon by both parties.
2. Non-Compete Clause:
Your employer's statement regarding the two-year restriction on working in competing facilities within the same emirate is based on Article 10 of the aforementioned law. However, for such a clause to be enforceable, it must meet specific criteria:
a) It should be necessary to protect the employer's legitimate business interests.
b) It must be limited in time (maximum two years), place, and type of work.
c) It should be proportionate to the nature of your role and access to sensitive information.
3. Recommended Course of Action:
a) Request a formal meeting with your employer to discuss your early release and the non-compete clause.
b) Review your employment contract thoroughly, paying special attention to any non-compete provisions.
c) If necessary, seek legal counsel from a specialist in UAE labour law to assess the enforceability of the non-compete clause.
d) Consider filing a complaint with the Ministry of Human Resources and Emiratisation (MoHRE) if you believe the restrictions are unreasonable or not in line with the law.
4. Important Considerations:
a) Ensure all communications regarding this matter are documented in writing.
b) Be prepared to fulfill any legitimate contractual obligations, including compensation for early release if agreed upon.
c) Remember that overly broad or unreasonable non-compete clauses may be challenged in court.
If you need any more clarification or assistance, please do not hesitate to reach out. We are here to ensure a fair and lawful resolution to your employment transition.
Yours sincerely,
ABDUL WAHIED
Dear,
The non-competition clause is subject to the conditions mentioned in the Labor Law, and therefore, the company is creating obstacles to prevent you from leaving.
Greetings,
Under UAE Labour Law (Federal Decree-Law No. 33 of 2021), an employee can request early termination of the notice period, but the employer's approval is required.
If you are willing to compensate for the remaining notice period, your employer should not unreasonably reject the request.
Regarding the two-year work restriction, this depends on the non-compete clause in your contract. Such clauses are enforceable only if:
- Your role exposed you to confidential business information.
- The restriction is limited in time, location, and scope and does not impose an excessive burden on your career.
To assess your specific case and potential legal options, we recommend booking a consultation with us. Our team can review your contract and help protect your rights.
Dear questioner,
If you are terminating the contract properly, then there are no issues, and if you are ready to pay the compensations, then even if they file a case, it can be challenged.
If you need further clarification, kindly share your WhatsApp number.
