Non-competition clause in labour contract

Clause is not applicable if the employee is moving to a government position

  • Posted by Bassam Za' Za', Legal and Court Correspondent
  • Published: 16:19 February 14, 2013

Questioner from Sharjah asks: I have worked with the company for more than 2 years with unlimited contract. Now I have an offer with a governmental department with better salary and I want to submit my resignation. But the manager informed me that the employment contract signed between me and the company includes the article “non-competition” and not to work with any body in UAE for 2 years, besides, he told me that he will ask the Ministry of Labor to impose one year ban as well as claim compensation if I worked with a competitor. I told him that I’m going to work with the government not a company but he is rejecting. Please advice.

I would like to clarify to the questioner that the threats of the employer are untrue, and the questioner may submit his resignation if he wants and non-competition clause mentioned in the employment contract does not have any consideration in the event that the questioner worked with any governmental department, no ban will be imposed on the questioner and the questioner is not obliged to compensate the employer, where the employer himself will give the questioner all his rights.