Questions & Answers
Questions & Answers
9 available 9 • View allNon-competition agreement and its enforcement in the UAE
4
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?

Oct 24, 2017
4050
Forcing employees to sign a non-competition agreement upon resignation
3
Q: Hi,
I have been working in a free zone company for almost four years now. For the last six months, my salary was very irregular and I am receiving it around 25th of the next month. My issue is that I have decided to resign and move to another company.
However, I heard that my company is now asking all the employees who are resigning to sign a non-competition document. This document states that we shall not work with any competitor for three years, even though this clause is not mentioned in my employment contract.
Since I am working in a technical company and with my experience, I will only be able to find another job with a company which will be in one way or another a competitor.
Is this legal? Can the company force me to sign the non-competition document?
What will I do if they refuse to give my salary, end of service benefits and experience letter when I resign?

Dec 11, 2017
5192
Non-competition clause as a restrictive covenant in the employee's contract
0
Q: Good morning.
An American company is working as an advisor for the Dubai government. The company has got employees to sign a non-competition clause document, prohibiting them from working for the same clients for a period of 1 year.
Now, employees resigned and might work directly or indirectly with the same clients. The company is threatening to sue the former employees for non-compliance with that clause and make them obtain the company's legal authorization to do such work.
Can you please advise the level of legality and also what is the appropriate next step?

Dec 17, 2017
1492
Legal restrictions in case of resigning to work with a competitor

5
Q: Dear Sir,
I worked as a site engineer in a landscaping company for about 3 years.
Now, due to personal reasons, I have to quit the job (notice period given already) and move on to another competitive company.
But in my contract, it has been mentioned that I cannot join in any other competitive companies.
Please suggest to me if I can happily join another company as I have already given the notice period to my existing company or whether I might face any issues in future?
Please reply urgently.
Regards,


Dec 26, 2019
1568
Can an ex-employer take any legal action against an employee for joining a competitor?
4
Q: Can an ex-employer take any legal action against you for joining a competitor?
The work geographies are different in both organizations.

Nov 11, 2020
1326
Terminating an employee in case of working for a competitor without permission
1
Q: An employee was found to be working on his weekly day off for a competitor.
I (the employer) cannot prove that the employee received any monetary consideration for his work but the fact that he offered his services to a competitor itself is deeply disturbing to the environment of trust and integrity in the company.
Needless to say, this employee cannot be trusted in the future. The incident in question was witnessed by someone who knows me personally and the said person called me from the site and reported it to me.
It is possible that the employee has been doing this regularly over time but happened to get noticed this time. Can this employee be terminated under Article 120 of the UAE Labour Law?
If not, what remedies are available to the employer?

Mar 15, 2021
459
The effect of non-competition clause on resigning and working in the same industry
0
Q: Dear Sir/ Madam,
I was offered to work in the construction field of industry. I was on an unlimited contract and my contract has a Non-Compete clause. On that, it mentioned the period of 1 year and location.
My question is, my duties and work now are not related to the scope of work or industry of my visa. My job responsibility now is related to construction but on my contract, I am on a logistics company visa.
This is because my employer has 3 companies under his sponsorship (construction/logistics/trading).
Will I be liable if I resign and work for a construction company even though the Non-compete clause of my contract is for a Logistics Company?
Regards,
M.

Sep 6, 2021
331
Can the employer ban you from working for 2 years after the contract termination or expiry?

0
Q: Hi
My employer has sent me the new limited contract and asked me to sign and submit it as it's a new requirement of the MOL UAE.
I found Article 4 (additional terms) which is banning me for 2 years after the termination or expiry of the contract. Shall it be right or I can ask them to remove it?
If they do not agree, what shall I do as the unlimited contract is no more valid in the next few months?
Please advise.
Thanks


Dec 8, 2022
222
What are the effects of the non-compete clause in case of resignation?
1
Q: Hi
I have a question regarding my UAE employment contract.
I have a non-compete clause with my current employer and have received an offer/contract from a new employer in the same industry.
Please, can you kindly advise if this is at all enforceable?
I feel the period is too long and the scope of work is too misguiding to be enforceable by any court system.
"1) the employee shall not during the term of the contract for a period of 2 years after termination for any reason, be an owner, partner, or employee of any business/employment within the UAE, in the aviation/flight support services industry which may compete with the business of the employer or any of its subsidiaries, regardless of the grounds for termination.
2) The employee shall not compete/assist anyone to compete with the employer for 2 years in any way that harms the employer's business.
3) liable in case the employer interests suffered any materiality or moral damages as a result of this breach, and the employer is entitled to claim compensation which he deems fit."

Feb 21, 2023
75
Legal blog
1 available 1 • View allAn Overview of the New UAE Labor Law and Recent Amendments of 2024 233
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
90418
Laws & Regulations
3 available 3 • View allFederal Law No. (8) of 1980 Concerning the Regulation of Labor Relations 53
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
103606
Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates 96
The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.
Dec 15, 1985
148375
Federal Decree-Law No. (33) of 2021 On the Regulation of Labor Relations 34
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
26396

Other answers by
453 453 answers •
View allTerminating an employee after sick leave and claiming compensation 0
Hello,
My employer fired me under Article 44 for not showing up for work for 7 days in a row. But that’s not the case at all. I was sick and the management was aware and they let me go.
I went to another country to get treatment because it’s expensive in Dubai. My employer did not pay me my salary for the month I worked and fired me.
I have official sick leave from another country and there is correspondence where my employer sent me to another country for treatment.
The problem is that the employer says that he will take compensation for the training that was specified in the contract, but I did not undergo training at all; I immediately started work from the first day of work and there was no training.
Does my employer have the right to charge me such a fee and not pay my salary?
Feb 29, 2024
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How to make the seller hand over the tenant's security deposit to the buyer upon completing a sale? 0
Should the seller in Dubai hand over their tenant's security deposit to the buyer upon completing a sale?
Who is responsible for managing this process?
At the time of the exchange, the broker said he would follow up with the seller and collect the deposit.
He hasn’t, and the seller has not handed over the deposit.
Feb 8, 2024
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How to deal with in-laws provoking and recording reactions? 0
Dear Sir/Madam,
My husband's family constantly provokes me and then records my every exaggerated reaction.
Now I'm worried that they might use those things against me.
Feb 8, 2024
241
How to cancel the MoU to buy an apartment with the broker if the bank did not approve the loan? 0
Hi,
I have a situation where I signed an MoU and gave my security deposit to the seller's agent. However later, the bank valuation of the property is lower than the selling price.
On my MoU, it has a clause that “the buyer has a right to cancel/negotiate if the bank valuation is not the same as MoU.” I tried to negotiate, however, we didn't agree on the price so I asked to cancel.
Now the agent is threatening me that they will not cancel the MoU and that will deposit my cheque. Later I also came to know that the person I am dealing with is not the same person whose name is mentioned as a broker in the MoU.
The agent I am dealing with is constantly messaging me with threats. I decided not to speak to him and instead, I wrote an email to the broker whose name is mentioned on the MoU but received no response.
I am on a very tight timeline as I need to vacate my apartment in 3 weeks, I found another unit but I don't know if I can pursue this while the initial MoU still not canceled.
Please, I need advice.
Feb 8, 2024
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Employer asking for visa reimbursement after resignation: do I need to pay? 0
Hello Sir/Madam,
I have already finished my first year with my company and resigned.
My employer is asking me to reimburse the cost of my visa because I did not finish my two-year contract.
Do I need to pay? The cost is 7,000 AED.
Oct 20, 2023
811
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