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!

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?

Q: Hi, I have signed a non-compete clause (under unlimited contract) with my previous company. After working for 8 years with them, they terminated me. I have now joined a competitor considering there was no other job available in the market. Now after 7 months, my previous company has filed a legal suit asking for compensation considering I am in a similar role and in the same territory. What is the available remedy?

Q: Hi, I am a golden visa holder and am currently unemployed. I have received an overseas job offer with a B2B contract instead of traditional employment. I need advice on how this is handled in the UAE.

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).