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Non-competition agreement and its enforcement in the UAE
Q: Hi, I'm Sanu from Abu Dhabi, my job is medical coding. I need a clarification regarding joining the client of my employer. I have completed 3 years with my current employer (Billing Services DMCC, Dubai). My 3-year contract was expired and cancelled. Now one of my previous employer clients (a government hospital) is approaching me to join with them. I have already signed a non-competition agreement which has a clause - I cannot join my employer own client for 2 years. Please note, currently, the contract between my previous employer and this government hospital has been cancelled. Please advise is there any exception that I can join with own client as it is government sector? Is there a chance my previous employer can make a case against me? If they raise a case then how to survive?
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Oct 24, 2017
Non-competition court case for joining a competitor
Q: My previous company filed a case in Dubai court, saying that as per my agreement with them I should not join the same field with a competitor of my previous company. In addition, they came to some amount and I got the news that they will file one case with more amount than the previous amount. So, is there any solution for this? How can I dismiss this case, as I have not done any crime?
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Oct 8, 2017
The effect of non-competition agreement on the employee to work for a former client
Q: I have an offer from our old client whose contract ended 5 years ago to join; can I join them? In my labor contract, it's stated that I cannot join the company's client till 2 years post resignation or termination. Kindly advise
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Aug 9, 2021
Does the non-compete clause restrict working with competitor under different designation?
Q: I have been working at a company for nearly 3 years under an unlimited labor contract as a Software Engineer, but the labor contract states that I am working in sales. The contract states that I am not allowed to work for a competitor for a period of 2 years in the UAE. I have got a job offer from a competitor with almost double the salary. The job offer is as a Software engineer. Will the non-compete clause be valid keeping in mind that the new job does not match my labor contract role? If yes, can the old employer prevent me (ban) from moving to the new role and can they file a law case?
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Oct 7, 2021
The applicability of non-compete clause when moving from a mainland to a Freezone company
Q: Good morning, I am writing to inquire regarding the non-compete clause. I just resigned from my previous company. I worked as admin staff and I did not have any supervisory roles, nor handle any financial responsibilities. I work for a mainland company in Dubai. Recently, I received a job offer from a competitor to do the same role. The competitor is DMCC and I will be under a Freezone visa. My employment entry permit has already been issued and I am just waiting for my residence visa to be printed. My previous employer threatened me that they will sue me because I signed a non-compete clause with them that should be effective for two years after I resigned. I am wondering if the non-compete restriction will apply to me given that I will be joining a Freezone company this time? I held a non-supervisory/admin level position in my previous company.
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Oct 25, 2021
Joining a competitor in the UAE after terminating a labor contract in Finland
Q: Dear lawyers, If my contract is terminated by a Finnish company, can I join a competitor in the Middle East if I have a clause in the contract saying I can not join a competitor?
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Jan 13, 2022
Terminating an employee's contract due to establishing a competing company
Q: Dear sir/madam, We have an employee who has set up a conflicting company where his wife is a partner. We have seen that our sales have dropped in the last few months drastically. I want to understand if we can terminate this employee considering he has cheated the organization and also are we required to pay him his end of service and pending salary?
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Jun 15, 2022
Warning to stop convincing colleagues from previous company to leave their job
Q: Warning to stop attempts to incite employees of the foreboding company to leave their work. I received the above legal notice from my ex-employer.
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Nov 14, 2022
If a DIFC employer requires a non-compete agreement, should they compensate the employee?
Q: Dear Lawyers, If my employer in DIFC requires a non-compete agreement that prohibits me from working in my specialty at another company, should they compensate me for this downtime? What else can I do if I have spent my entire life developing in my field? Which law regulates this issue in the DIFC zone?
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Jul 9, 2024
Legal blog
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An Overview of the New UAE Labor Law and Recent Amendments of 2024
The UAE has adopted a major reform in its legislative system that brought about 40 new laws and amendments to the company law, criminal law, personal status, among others. The amendments aim to develop the legislative structure in various sectors, the labor law being one of these, was the most recent. We try in this article to shed light on the changes introduced with the new labor law and their significance on both, the employer and employee.
Sep 10, 2024
Laws & Regulations
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Federal Law No. (8) of 1980 Concerning the Regulation of Labor Relations
The provisions of this Law, known as "UAE Labour Law", govern the relationship between employers and employees and other labour matters in the United Arab Emirates. There are special labour related regulations applicable in some of the free zones in the UAE.
Apr 20, 1980
Federal Decree-Law No. (33) of 2021 On the Regulation of Labor Relations
The provisions of this Decree-Law, known as "New UAE Labor Law", govern labour relations in the private sector of the United Arab Emirates. The New Labor Law repeals the previous UAE Labor Law (Federal Law No. (8) of 1980).
Sep 20, 2021
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Ahmed Elnaggar
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How can I vacate my tenant if the rental agreement ends before the eviction notice deadline?
My Dubai tenant's rental agreement is ending by the end of September 2024 and the completion of 12 months of legally served Eviction Notice is the end of December 2024. I have two questions: (a) Can I send a rent increase notice 3 months before as the rent has increased as per the RERA rent calculator? (b) The second question is, do I have to renew the rental agreement for 3 months (until December 2024) or not? Thank you.
May 1, 2024
How can I reach a settlement with the bank for a mortgage of a jointly owned property?
I have a jointly owned property in Abu Dhabi. The mortgage was defaulted on as I had to leave the property with my children following an assault by my ex-husband. He left the country in 2018 and never paid the mortgage. As I was in the country, the bank filed a criminal case against me, and I was sentenced to 3 years. I won the appeal against the bank and then filed another criminal case a few months later in Dubai. Again, I won and paid a fine. In 2019, the bank started a civil case against me and my ex-husband to have the property repossessed. However, at the time of the purchase of the property, there were no Title Deeds, the bank requires this. I cannot give them the Title Deeds to sell the property and pay back the amount owed to them as my ex-husband refuses to provide a POA. The bank has filed another criminal case against me only for our jointly owned property. I wish to resolve this and pay off the bank and receive any money left from the sale. How can I resolve this issue of the Title Deeds?
Oct 4, 2022
The procedures for filing for divorce on mutual consent
Dear sir/madam, I am separated from my wife due to compatibility reasons. We got married in the Indian consulate in Dubai on December, 23rd. We would like to file a divorce on mutual consent as soon as possible. May I get some advice here on the procedures?
Sep 13, 2022
My previous employer failed to pay my gratuity. Can I file a case 6 months after resignation?
My previous employer failed to pay my gratuity six months past now since I resigned, Is it possible to file a case against him after a 6 months period?
May 31, 2022
Can a real estate agency hold a percentage of a property sale until transfer is done?
A real estate agency has signed an MOU stating that a 10% security deposit from the buyer and the seller will be kept in the real estate agency and will be released upon transferring the property. The transfer of the property was blocked due to the court order. According to my colleagues, the real estate agency is not a trustee and they are not allowed to have taken my security check in the first place, is this correct?
Jun 28, 2021
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