Last updated: Sun 2 Jul 2023, 8:55 AM
Question: Is non-compete clause enforced in Dubai? I had signed the clause when I took up my current job. Now, I have a better offer from another company. What happens if I take the new job? Will I get a ban? Is there anything I can do to prevent this or any other consequence?
Answer: Pursuant to your queries, it is assumed that you are currently employed by a mainland employer in Dubai. Therefore, the provisions of Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations and Cabinet Resolution No. 1 of 2022 on the implementation of Federal Decree-Law No. 33 of 2021 regarding the Regulation of Employment Relations are applicable.
In the UAE, an employer may include a non-competition clause in an employment contract of an employee to avoid him or her joining a competitor upon termination or resignation of an employment contract. A non-competition clause mentioned in an employment contract of an employee is valid for not more than two years from the last working day of the employee with an employer. This is in accordance with Article 10(1) of the Employment Law, which states, “Where the employee performs a work which gives him access to employer's customers or business secrets, the employer may make a provision in the Employment Contract that the employee shall not compete with or be engaged in any business which competes...
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