Q: Hi. I have recently joined an organisation in the UAE. They have shared with me an offer letter on their company letterhead which prohibits me from joining the competitors for six months after leaving. Later, they shared the MOHRE Job Offer Letter which does not have a non-compete clause. Both the letters I had signed. I was told they would share the labour contract but they didn't; instead, they copied my signature from the Job Offer Letter to the Labour Contract without my knowledge. The labour contract also does not have a non-compete clause. Now I need to know whether the clause applies to me or not if I join another organisation.

Q: Dear Sir/Madam, I had a contract with my former employer that had a 3-year non-compete clause. This was an internal company contract. I later signed another contract with the Dubai Media City Authority, which only mentions that my non-compete is limited to the territory of Dubai. Which contract am I bound by? Additionally, the line of business is different between my former employer and my new employer. However, my former employer is saying that they will take legal action and file a case against me. My new employer has a business within their group umbrella that is similar to one of the products of my former employer. Can I be held legally liable?

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 been appointed to work as a freelancer with a registered company in the UAE. The company strictly advised me not to work or engage with a third party during my probation for the first six (6) months period, as a way of submitting to their rules. It is instructive to highlight that I'm on my own visa. Do they have to reserve this right of non-compete clause in the contract? Please advise

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).