Questions & Answers
What are the consequences of non-competition agreement after contract expiry?
Hi Ma'am,
My 2-year contract will soon finish in November this year. So I submitted a letter stating that I'm not going to renew my contract anymore. It was a 3 months notice.
Recently, she spoke with me and informed me that there is a non-compete clause in my contract and that I'm not allowed to seek another employer unless they allow me to.
The clause states that "The Second Party shall be committed not to work in the same competing business of the First Party in the UAE for a period of two years, if the employee has terminated the employment contract or if the contract has expired as per article 127."
I want to know if there is a way that I can still find and transfer to another employer. Any advice would be appreciated.
Thank you.
Dear Questioner,
I would like to review the non-competition clause to give you accurate advice.
However, from the quote which you have given here, I understand that the non-competition clause is invalid and unenforceable.
Article 127 of UAE labor law refers to post-termination restriction. It states as follows,
"If work assigned to the employee allows to acquaint with the employer's clients or have access to the secrets of his work, the employer may oblige the employee that after the termination of the contract he may not compete with him or take part in any business interest competitive to the employer's. Such agreement shall be valid only if the employee has reached the age of 21 years at the time of its being executed and if the agreement is limited with respect to the place, time and nature of work to the extent as is necessary to safeguard the lawful interest of the business."
It strictly lays down that the restrictions shall be adequate to protect the business interest of the employer.
However, it seems your employer has put a restriction that applies all over UAE which is arbitrary.
Regards,
Rajasree Ravivarma
