Does a non-compete agreement outside the MOHRE contract still apply?

Dear Questioner,

It doesn't matter whether the condition is in the contract or a separate document. However, this condition is not applied as employers expect.

Dear Questioner,

Separate non-competition or non-disclosure agreements apply even if it is not included in the employment contract.

Can you share the agreement so that we can review it and advise you about its legal implications?

For further inquiries about your topic, you can reach our office or contact us via WhatsApp or email.

Hello dear,

Regarding the non-compete declaration, yes, it does still apply.

However, for the non-compete clause to be legal, it must specify the city, for example, in Dubai, and specify the period, with a condition that it does not exceed 3 years.

Dear questioner,

Yes, it is still applicable for two years and is mentioned in the Labor Law. However, there are certain exceptions.

To impose the non-compete clause, the employee must be working with a company that is competing with your current employer, and you will be dealing with the same profession and scope of work.

If you need further clarification, please share your WhatsApp number.

Dear Questioner,

In the scenario where an employee signs a non-compete agreement in a separate document that is not explicitly mentioned in their labor contract from MOHRE (Ministry of Human Resources and Emiratisation), the enforceability of the non-compete agreement may still apply depending on various factors.

1. Validity of Non-Compete Agreement:

The validity of a non-compete agreement typically depends on the laws and regulations governing employment contracts in the relevant jurisdiction.

In the United Arab Emirates (UAE), including Dubai where MOHRE operates, non-compete agreements are generally enforceable if they meet certain criteria such as being reasonable in scope, duration, and geographic area.

2. UAE Labor Law Perspective:

Under UAE labor law, non-compete agreements are recognized but must adhere to specific conditions to be considered valid.

These conditions include protecting a legitimate interest of the employer, specifying a limited duration (usually up to 6 months post-employment), and defining a reasonable geographic scope.

If these conditions are met, the non-compete agreement may be enforceable even if it is not explicitly mentioned in the labor contract registered with MOHRE.

3. Separate Document vs. Labor Contract:

The fact that the non-compete agreement is contained in a separate document rather than within the labor contract itself does not necessarily invalidate its terms.

As long as both parties have willingly signed the non-compete agreement and it complies with applicable laws, it can still be binding on the employee.

4. Legal Advice and Dispute Resolution:

If there is uncertainty regarding the applicability or enforceability of a non-compete agreement signed outside of the main labor contract, seeking legal advice from employment law experts or consulting with MOHRE directly can provide clarity on the matter.

In case of any disputes or disagreements related to the non-compete agreement, resolution mechanisms outlined in UAE labor laws can be utilized.

Therefore, even if a non-compete agreement is not explicitly included in an employee’s labor contract registered with MOHRE, it may still be enforceable under UAE laws if it meets legal requirements and is agreed upon by both parties.

- Top 3 Authoritative Sources Used:

• Ministry of Human Resources & Emiratisation (MOHRE): Official government entity responsible for regulating labor relations in the UAE.
• UAE Labor Law: The Federal Law No. 8 of 1980 on Regulation of Labour Relations governs employment matters in the UAE.
• Legal Consultation: Insights from legal professionals specializing in UAE employment law were considered to ensure accuracy and relevance in addressing non-compete agreements outside of labor contracts.

These sources were instrumental in providing accurate information on non-compete agreements and their enforceability within the context of UAE labor regulations.