Living In UAE

UAE: Can my employer enforce a non-compete clause against me?

The non-compete clause in the UAE Labour Law and the implications of breaching it

Published: September 21, 2020 09:28 Huda Tabrez, Living in UAE Editor

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If your UAE work contract has a non-compete clause, how does it affect your future work opportunities — Have a new job offer? Here is what the non-compete clause in your current contract means. Image Credit: Stock image

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My contract mentions that I cannot work for any other company in the same field for two years — The reader has been working in the company for four years. Image Credit: Stock image

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All my experience is in this field, and I have an offer from another company — He now has a better job offer. Image Credit: Stock image

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Gulf News raised the query with a legal expert. — Reda Hegazy, Senior Legal Advisor and Arbitrator at Al Suwaidi and Company. Image Credit: Stock image

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Article 127 deals with the non-compete clause in work agreements. — Image Credit: Stock image

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Text of Article 127 of the UAE Labour Law — Article 127 cover the aspects of protecting an employer business secrets. Image Credit: Stock image

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Text of Article 127 of UAE Labour Law — However, the non-compete clause has certain specific requirements, that need to be mentioned in the contract. Image Credit: Stock image

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Text of article 127 of the UAE LAbour Law — Image Credit: Stock image

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According to Hegazy, Article 127 has stipulated three elements, which should be determined in the contractual agreement — All these elements should be applicable at the same time for the clause to be valid. Image Credit: Stock image

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First element is the time period, the second is of the restriction of place, and the third is the determination of the work type — The aim of the clause is to protect the employer's interests. Image Credit: Stock image

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The clause is meant to protect employer, not punish employee for finding another job. — Image Credit: Stock image

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All these elements must be [applicable] collectively. — Image Credit: Stock image

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The former employer cannot stop you from joining a new company — You can still join the new company, however, your former employer may file a court case in certain cases. Image Credit: Stock image

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the onus is on the employer to prove that they suffered a financial loss — What happens if the employer files a court case? Image Credit: Stock image

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My advice to your reader is to join to the new company. — The former employer would need to prove in court that the employee's new job has led to financial loss for him. Image Credit: Stock image

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The burden of proof of that breach is on the ex-employer — If proven in court, the employee may need to pay some compensation comparative to the damages. Image Credit: Stock image

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