UAE | General
Ex-employee to compensate company
technological and industrial company has won Dh120,000 in compensation from its former production manager after he was found working for a competing company.
- By Bassam Za'za', Senior Reporter
- Published: 00:10 July 3, 2008
Dubai: A technological and industrial company has won Dh120,000 in compensation from its former production manager after he was found working for a competing company.
Dubai Civil Court ordered the Indian production manager, S.S., to pay his former sponsor Dh120,000 plus nine per cent legal interest. He had signed a written undertaking with the technological and industrial company promising to pay the amount in case he was found working for a competitor.
The claimant's lawyer Dr Habib Al Mulla, of Dr Habib Al Mulla and Co Advocates and Legal Consultants, said in his civil lawsuit: "The production manager worked for our client until he resigned in 2005. He handed his former employer a written undertaking and promised not to work for a competitor for two years. The undertaking included a clause which said he will pay Dh120,000 in case he was discovered to be working for a competitor."
Court records said the Jebel Ali Free Zone Area (Jafza) administration discovered that the accused was working for a competitor and so it cancelled his visa and banned him from working or entering Jafza for a year.
Outsmarting ban
The claimant discovered later that he outsmarted the ban and joined a Fujairah-based company, which was among the group of companies for which he worked after his resignation.
S.S. also obtained a permission to enter Jafza and he re-entered Jafza and contacted eight of his former employer's clients and carried out a number of projects for them.
Dr Al Mulla said: "The claimant discovered the defendant's behaviour which cost our client major financial losses. Thereafter we lodged civil lawsuit against S.S. and asked him to pay Dh120,000."
The production manager's lawyer asked the Civil Court to dismiss the lawsuit but Presiding Judge Samir Abdul Hamid turned down his plea and ordered the accused to pay Dh120,000 plus legal interest.
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