Q: We have an employee who has set up a conflicting company. Our sales have dropped in the last few months drastically… A: If you are able to prove the competition, then this is a reason to terminate his work, but his dues must be settled so that he does not file a lawsuit against you…

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Terminating an employee's contract due to establishing a competing company

Dear sir/madam,

We have an employee who has set up a conflicting company where his wife is a partner. We have seen that our sales have dropped in the last few months drastically.

I want to understand if we can terminate this employee considering he has cheated the organization and also are we required to pay him his end of service and pending salary?

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Khaled Ebid

Laila Hamza Al Mulla Advocates and Legal Consultants

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15 Jun 2022, 04:53

Dear questioner,

If you are able to prove the competition, then this is a reason to terminate his work, but his dues must be settled so that he does not file a lawsuit against you.

Kindly contact me via phone or email for further assistance.

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