Probationers join competitor, UAE firm seeks action

Question: I own a private company. Four months ago, I made work permit for two employees and brought them from their country. Upon their arrival, I trained them and spent money on them.

Now, the two have submitted their resignation on the pretext that they are still on probation and that according to the UAE Labour Law, they have the right to leave. I know that they will be joining another competing company, our employment contract stipulates a non-competition clause. What are their rights, and mine?

Answer: They do have the right to resign within the probation period, according to Article 9 of the Federal Labour Law, under two conditions: Notify you at least one month prior, or pay you the salary amount and compensate you with the costs of recruiting or contracting.

The mentioned Article 9 states that in the event that the worker wishes to move, during the probation period, to work for another employer in the state, he must notify the original employer in writing within a period not less than one month as of the date of his desire to terminate the contract.

The new employer shall compensate the original employer with the costs of recruiting or contracting with the worker, unless agreed otherwise. If either party terminates the employment contract without observing the provisions of this Article, it shall pay the second party a compensation equal to the worker’s wage for the notice period or the remaining period of the notice period.

Regarding working for a competitor, the duo has the right to do so since they are still in the probation period according to Article 12 of the Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree No. 33 of 2021.

The worker shall be exempted from the non-competition clause stipulated in Article 10 of the Decree-Law under the following conditions:

a. If the worker or the new employer pays to the previous employer compensation not exceeding three months of the worker’s wage as agreed upon in the last contract, subject to the previous employer’s written consent thereto.

b. If the contract is terminated during the probationary period.

c. Any professional categories that are in demand in the national labour market and determined by resolution in accordance with the workers’ classification approved by the Cabinet.