Q: Dear Sir, I'm Satheesh from Abu Dhabi. For the past 3 years, I was working for a free zone company in Dubai. Our company have clients from both Dubai and Abu Dhabi and doing medical billing services for hospitals and medical centres. I was working with one of the company's clients which is a government hospital in Abu Dhabi (please note - govt is removing our company by Sept.). My concern is that the hospital is interested to recruit me as their employee. But I already signed a limited contract with my company which has "Non-competition non-solicitation agreement". My contract states that I cannot join their clients or competitors for 24 months after my visa expiry or end of service. If I violate this law they will take legal actions and they can ask for compensation (Law no. 8 of 1980 for UAE and Law no. 5 of 1985 for Dubai). My visa is expiring by Aug 25th, so I'd like to join there. Can I join this Abu Dhabi government hospital or not? If I join, is there any legal issue I have to face from my company?

Q: Dear Madam, I was previously working as a manager in a company providing auditing & accounting services. I had a non-compete clause inserted into my labour contract. Currently, I have joined a company with a similar practice at a lower salary and designation as I was not able to get a better opportunity. I have informed my previous company regarding the same and they want an email from me stating that I won't indulge in direct competition. Will sending out such a letter have any implication in future?

Q: Recently, our management (Free zone company) asked us to sign a document. It mentions 3-month notice period as one clause. The other being if the resigned employee approaches or starts a business connection (as supplier and buyer) with one of the existing clients of the ex-employer, the ex-employer can file a case against the ex-employee for USD 100 K. What's the legal validity of this? I heard any document, or contract will not be valid once the employee visa is cancelled.

Q: Hi, Good morning! I just want to get information regards the non-competition clause on the labor contract. The company mentioned 2 years period after termination or resignation from the company. Kindly advise how to overcome this. Thanks!

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.

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.

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.

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).