Can my old employer sue me for a non-compete clause that's only in the offer letter?

Dear Sir/Madam,

Thank you for your question regarding the enforceability of a non-compete clause concerning your previous employment with a DMCC-based company.

Legal Position:

- Non-Compete Clause Validity:

Under UAE law, a non-compete clause is only enforceable if it is expressly included in the signed employment contract. Clauses contained solely in an offer letter, without being incorporated into the final contract, are generally not legally binding.

- Requirements for Enforceability:

For a non-compete clause to be enforceable, it must be reasonable in terms of duration (not exceeding two years), geographic scope, and the nature of restricted activities. It must also protect the employer’s legitimate business interests.

- Your Situation:

Since your DMCC employment contract does not contain a non-compete clause, and only your offer letter does, it is unlikely that your previous employer could successfully pursue legal action against you for engaging with former clients, unless you expressly agreed to such terms in your signed contract.

- Potential Liability:

Even if a non-compete exists, your former employer would need to demonstrate that your activities are causing direct harm to their legitimate business interests and that the clause is reasonable and not overly broad.

Conclusion:

Based on the information provided, you are unlikely to face legal action from your previous employer regarding business dealings with former customers, unless a valid non-compete clause exists in your signed employment contract.

For complete assurance, it is advisable to review your contractual documents with a qualified legal professional.

Should you require further clarification or legal assistance, please feel free to contact us.

Kind regards,

Greetings,

Thank you for your inquiry!

If your signed employment contract with the DMCC company does not contain a non-compete clause, it is generally the binding document, and you are less likely to face legal action.

However, if the offer letter was signed and clearly mentions non-compete terms, it may still have some legal weight depending on its wording and the circumstances.

Enforcement of non-compete clauses in the UAE depends on several factors, including the scope, duration, and geographic limitations.

To properly assess your risk and protect yourself, we strongly recommend booking a consultation with us. Our team can review your documents and assist you in handling any potential claims from your previous employer.

Hello,

The signed employment contract filed with the free zone authority (DMCC, in this case) is what carries legal weight, not the offer letter.

Offer letters are not enforceable in court unless their terms are included in the final signed contract. So if the non-compete is only in the offer letter and not in the final DMCC contract, your ex-employer will struggle to enforce it legally.