Q: I have a non-competition agreement signed with my previous company. Based on that, I cannot work in the same field or anything related. I was an office assistant but I was given a title as sales so the agreement can be effective on me. I want to know, will that agreement get me into trouble if I work with a competitor?

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.

Q: Hi, I am working for a company in the Media City as a developer and I have a non-compete clause in my contract. I want to join a competitor who is also in Dubai but because of this non-compete clause, I cannot join the competitor. Is there any way to leave my current company and join the competitor?

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.

Q: Hi, I am writing to inquire regarding the non-compete clause. I resigned from a Dubai-based mainland LLC company in July 2021 and from then, they were not canceling my visa and not giving me EoSB. I filed a labor case and finally won the case after 6 months. I worked 7 years in a sales position with them. Recently, I received a job offer from a competitor to do the same role. The competitor is in Sharjah Freezone and I will be under a Freezone visa. There was a competition clause in my job offer letter which I signed 7 years ago but there was no such clause in the contract. And that time I hold a technician position and my recent position was sales. The clause written in the offer letter says: "should you terminate your employment contract, you shall not join any competitor in the UAE conducting the same activity as the company, before a period of one year following such termination". I am wondering if the non-compete restriction will apply to me given that I will be joining a Freezone company this time?

Q: Dear sir/madam, I have been working in a gas company for about 6 years. It is our company's rule that one cannot switch to another gas company in any scenario within 2 years of resignation from the company. They think that it may cause leaking secrets about customers and suppliers, procedures, and policies to the competitors. Is there any legal value of such imposition? Can a company hold an experience/character certificate or any other valued document or payment in such a case? Thanks!

Q: Hello, I have a question regarding the non-compete clause. Do note that this non-compete clause was only mentioned in the offer letter and not in the labor contract. The current situation is I am looking to start my own training consultancy. The nature of the business is to partner with companies that provide e-learning products, I will then consult with HR leaders in companies and advise and sell that e-learning software to them. The previous organization that I worked for was not a consultancy but rather had its own e-learning software that is being sold in the market. However do note that the contract I signed with them was released by their company in New Jersey, USA, as they do not have an office in the UAE. However, my visa was issued by their partner company, whom I had to sign a labor contract with as well as an offer letter that did not have a non-compete clause. I want to know If I will get into any trouble if I start my own company considering the above. Thank you

Q: Hello, I have questions regarding the non-compete agreement which was written in a contract: The employee will be committed not to work in the same competing business of the company in the UAE for the period of 2 years if the employee has terminated the contract or if their employment contract had expired as per Article 127 of the Federal Labor Law no. 8 of 1980 without prejudice to the companies legal or contractual obligations. In such case, the additional conditions shall not breach Applicable Laws, or the articles stipulated in this contract or the Annex hereof. In case of adding such conditions, this contract and the annex hereof must be referred to the relevant labor relations authority within MOHRE for review prior to approval thereof. Is this law in reality enforceable or unenforceable? My position is not a high senior position (I’m a swimming coach). Does this mean that I am not entitled to work in the UAE for 2 years after my resignation or after my contract ends? Thanks!

Q: Dear Sir/Madam, I have two questions; one is about the non-compete clause term and another is about predetermined compensation. 1) My contract includes a non-compete clause stating that an employee cannot "in any capacity be engaged, interested or employed in a competitor's business in the UAE during 12 months after termination of the contract." I don't work in sales. I am working at a managerial level, I won't take clients or secrets with me when I leave. Is it valid when I join a competitor in a similar position? Can changing the job title/department avoid this clause? 2) My contract states that if an employee breaches any provisions of the clause, "the employee agrees to pay the damages equivalent to the employee's monthly salary for each month for the entire period." Does the company need to prove that I caused the damages to the company to file a case? Can they file a case as long as I join any competitor? Do I need to prove I didn't cause any damage to the company? Thanks in advance for your help!

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.

This Decree sets the rules and conditions for the termination of fixed-term (limited) or unlimited (not term-bound) employment contract between employer and worker in the United Arab Emirates.

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).