What can the employer do if an employee with a non-competition clause joins a competitor?

You can claim compensation from him and he can be banned from working in the UAE for violating the terms of the contract.

Dear User,

First, it is important to understand the non-compete clause according to UAE law. It shall not be applied if the employee has been terminated rather than resigning from the job.

The non-compete clause should also specify the geographical area, time period, and the kind of business activities that are prohibited to take part.

Furthermore, the non-compete clause shall only be valid it if meets the conditions specified in articles 127 of the Labor Law and 909 of the Civil Code.

In the case that the employee has breached the non-compete clause, the employer can only claim for damages incurred by him due to the breach of the terms specified in the non-compete clause.

Such a claim may be made within one (1) year from the date that the breach occurred. An employer can raise a claim as long as they can establish to the Court that the damages incurred are a direct consequence of the breach.

However, an employer may not receive a court order prohibiting the employee from joining a competitor's company. It shall also be kept in mind that the employee may join a business in a similar sector of business by obtaining a different role.

Regards,

KHA Advocates