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Can my UAE employer claim ownership of my personal side project?

I work for a large organisation with a head office and branches. My contract has a broad IP appendix that assigns all “Materials” created “in the course of Employment” (including software) to the company, along with a conflict of interest agreement regarding outside activities.

In my spare time, on my own laptop and outside working hours, I am building a hobby analytics/automation tool intended to help my branch make better decisions and streamline workflows. There is no separate company, no external clients and no revenue. Branch management has verbally encouraged it, but nothing is in writing from the head office.

Under UAE law and this contract wording:

  1. Can I get into trouble just for doing this project in my spare time?
  2. Is it likely to be treated as “Materials” owned by the company that I must hand over?
  3. What concrete steps/approvals do you recommend now to manage IP and conflict of interest risk?
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Rashid Khalil Obaid Advocates and Legal Consultancy
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17 Nov 2025, 04:44

Be advised that there is a non-zero risk your project could be claimed by the company under the current contract wording. The safest approach is to obtain written approval from head office confirming your project is personal and outside the scope of employment, and to maintain strict separation from company resources and data.

For more details and personalized guidance, please share your WhatsApp number so we can review your documents and assist you.

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Future Vision Advocates Legal Consultancy
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17 Nov 2025, 07:38

Greetings,

Thank you for your inquiry.

Based on UAE law and the contract wording you described, your side project may raise both intellectual property (IP) and conflict-of-interest concerns, even if done on your own time and equipment.

Risk of Trouble:

  • Yes, there is potential risk. If the company believes the tool is related to your job duties or could impact its operations, they may claim it falls under your employment obligations.

Ownership of the Tool:

  • Since your contract assigns all “Materials” created “in the course of Employment,” there is a real possibility that the company could argue that the tool belongs to them—especially if it benefits your branch or relates to internal processes.

Recommended Steps:

  • Obtain written approval from management or the head office clarifying that the project is permitted.
  • Request confirmation that IP rights remain with you unless otherwise agreed.
  • Avoid using company devices, data, or time.
  • Consider drafting a formal side-project agreement to eliminate any future disputes.

For precise guidance and to protect your rights, we recommend booking a consultation with Future Vision for Advocacy and Legal Consultancy, or authorizing our office to review your contract and prepare the necessary approvals.

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Al Kayaan Advocates and Legal Consultants
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17 Nov 2025, 07:51

Hello, as per your query, please note that if there is any conflict of interest agreement which you signed and if you are doing any kind of hobbies, which is related to the company on your own laptop, then there might be a conflict of interest if you earn revenue out of those hobbies.

However, please note that if you are using the company laptop or company instruments to do that with then the company might file a compensation case if they come to know, or things go against you. Hence, you should be careful about doing the hobby, which (if) related to the same industry as your employer.

Please contact us by email or WhatsApp for further assistance.

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Ibrahim Al Banna Advocates & Legal Consultants
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17 Nov 2025, 14:36

Thank you for your detailed query.

Employment contracts in the UAE — especially for large organisations — often contain wide IP assignment clauses and conflict of interest provisions, so it is very important to understand your legal exposure before continuing with a side project, even if it is non-commercial and developed outside working hours.

Based on the information you shared, here is the position under UAE labour law and IP principles, and the risks that you should be aware of:

1) Could you get into trouble for doing this project in your spare time?

  • Potentially yes, depending on how your employer interprets the IP and conflict clauses. Even if it is developed on your personal laptop and outside office hours, if the idea, purpose, or functionality is connected to your employer’s business, they may argue it falls within “employment-related work” or “activities requiring prior approval.” This is especially true in organisations with strict internal policies.

2) Could the tool be considered company-owned “Materials”?

  • There is a real possibility. Most UAE employment contracts define “Materials” or “Works” very broadly — including software, data models, automation processes, analyses, or tools created “in the course of employment” or “relating to the employer’s business”. Since your tool automates decisions and workflows for the branch, the company could later claim ownership and require a handover, even if you built it independently.

3) What steps should you take now to protect yourself and avoid conflicts?

  • To manage both IP and conflict of interest exposure, I recommend you take the following practical steps:
  • Obtain written approval confirming that the project is permitted as a personal initiative.
  • Clarify in writing whether the company claims ownership over the tool or if you retain rights while allowing them to use it.
  • Ensure you are not using any company data, proprietary models, or confidential information without permission.
  • Request a short side-project exemption or clarification from HR or Legal, depending on internal policy.
  • If the company wants to adopt the tool, make sure there is a clear agreement about rights, attribution, and future use.

These steps significantly reduce your legal risk and prevent issues later if management or headquarters changes their view.

If you wish, I can review the specific wording of your contract, your IP appendix, and any internal policies, and then draft a tailored written request/approval note for you to submit to management. This will protect you and ensure you remain fully compliant.

You may reach me directly on WhatsApp or by phone to discuss this in more detail and proceed with a consultation.

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Mohamed Bakheet Advocates & Legal Consultants
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18 Nov 2025, 09:25

The most dangerous thing is that you only have verbal approval from the branch management, while the head office is the legal decision-maker.

And if any dispute arises or management changes, they can retract that approval, and you become vulnerable.

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