Q: I have signed a labour contract with the non-competing clause for 12 months. I would like to know, how this can be enforced if I join another company whose activities are not exactly the same but are similar. I'm working for a manufacturing company and would like to join the trading company, which is my former employer. My current employer is not comfortable with me going back to my former employer and is asking me to refrain from this based on the clause in my contract. Kumar

Q: Is the non-competition clause applicable in case an employer terminates an employee? In this case, can you work for a competitor and take your existing clients to your new employer?

Q: Good morning. An American company is working as an advisor for the Dubai government. The company has got employees to sign a non-competition clause document, prohibiting them from working for the same clients for a period of 1 year. Now, employees resigned and might work directly or indirectly with the same clients. The company is threatening to sue the former employees for non-compliance with that clause and make them obtain the company's legal authorization to do such work. Can you please advise the level of legality and also what is the appropriate next step?

Q: Hi I have a question regarding my UAE employment contract. I have a non-compete clause with my current employer and have received an offer/contract from a new employer in the same industry. Please, can you kindly advise if this is at all enforceable? I feel the period is too long and the scope of work is too misguiding to be enforceable by any court system. "1) the employee shall not during the term of the contract for a period of 2 years after termination for any reason, be an owner, partner, or employee of any business/employment within the UAE, in the aviation/flight support services industry which may compete with the business of the employer or any of its subsidiaries, regardless of the grounds for termination. 2) The employee shall not compete/assist anyone to compete with the employer for 2 years in any way that harms the employer's business. 3) liable in case the employer interests suffered any materiality or moral damages as a result of this breach, and the employer is entitled to claim compensation which he deems fit."

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).

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.