Questions & Answers
The validity of a non-compete clause
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!
Dear questioner,
The rule you refer to is commonly known as a non-compete clause which is in accordance with UAE law. Furthermore, the clause is valid for a period of two (2) years from the date of termination of the employment contract, as per article 10 (1) of the employment law.
This clause does not apply if you resign during the probation period or if the employer terminates the employment contract.
In case of a breach of the non-compete clause, your employer may file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE) and may initiate a civil case against you; provided that it is within the statute of limitations period of one (1) year after such breach.
Regards,
Kha advocates
Welcome,
Unfortunately, the non-competition clause is a legal condition in force, so you have the right to adhere to it, but in most cases, the condition falls for a year, make sure of the duration of your contract.
