Questions & Answers
Non-competition agreement and its enforcement in the UAE
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?
It would be advisable to read your agreement to advise you appropriately. Kindly email me your agreement at nikhat@kochhardubai.com.
The non-competition clause must be clearly mentioned in your contract (Article 127 of the UAE Labour law) along with the period of non-competition and territory (Articles 909 and 910 of the UAE Civil Code). And if all is done ...the employer has to prove his loss unless a specific amount of compensation is mentioned.
Regarding the contract between your previous employer and the government hospital (client) has been canceled: Depends on the definition of a Client in the contract whether it means past and present client.
Joining a government sector: Joining a government entity is safe.
"Is there a chance my previous employer can make a case against me": He can if the contract is drafted properly but if the compensation amount is not mentioned he has to prove his loss which will be difficult.
"If they raise a case then how to survive": Appoint a good advocate.
