Questions & Answers
Questions & Answers
8 available 8 • View allForcing an employee to sign an undertaking letter of non compete
1
Q: Hi,
I have an employment contract with a clause: non compete for 2 years in case of resignation.
But, this clause was not mentioned in my offer letter when they hired me. My question is: do I have to sign now an undertaking letter of non compete clause while leaving the company by resigning because HR is forcing me to sign the undertaking letter now?

Oct 7, 2020
3079
Non-compete clauses in the employment contract
3
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?

Jul 30, 2017
10715
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
1635
The validity of a non-compete clause

1
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!


Nov 17, 2022
307
The applicability of the non-compete agreement on a swimming coach



2
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!




Jan 26, 2023
283
An arbitrary non-compete clause in a labor contract. What to do?

2
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!


Mar 22, 2023
195
If a DIFC employer requires a non-compete agreement, should they compensate the employee?




1
Q: Dear Lawyers,
If my employer in DIFC requires a non-compete agreement that prohibits me from working in my specialty at another company, should they compensate me for this downtime?
What else can I do if I have spent my entire life developing in my field?
Which law regulates this issue in the DIFC zone?





Jul 9, 2024
172
Employer says I can't work in the same emirate at a competitor after resigning. Is this correct?




1
Q: Hello,
In my current job contract, I have a 30-day notice period. I have already submitted my resignation, but I want to resign early; it’s 5 days before the end of my notice period.
I requested early resignation and am willing to pay any liabilities in this matter.
However, my company is saying I can't work in the same emirate within two years at any competing similar facility, as per Labour Contract Law No. 33 of 2021.





+2
Mar 7, 2025
95
Legal blog
1 available 1 • View allAn Overview of the New UAE Labor Law and Recent Amendments of 2024 235
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
93870
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
103828
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
148612
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
27369

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