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An arbitrary non-compete clause in a labor contract. What to do?

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!

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KHE Legal Consultancy
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21 Mar 2023, 18:40

Dear questioner,

We find the terms of your contract to be arbitrary, particularly the non-compete clause which applies to all Emirates and the compensation provision.

We recommend that if you did not sign the contract, you should consider looking for another job opportunity.

Best regards,

22 Mar 2023, 14:03

While the non-compete clause here is general, is it still valid and enforceable?

If the company really files a case and makes complaint, what can be the worst consequence and the maximum amount of penalty please?

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Mohamed Bakheet Advocates & Legal Consultants
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22 Mar 2023, 04:38

Dear questioner,

Forget about all of these and follow the UAE labor law.

22 Mar 2023, 14:01

May I know what is the UAE labor law on this?

Can I join another company in the same industry?

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