Non Compete Agreement Uae

“A contract that is actually concluded is binding on the parties. It can only be amended or terminated in accordance with its terms and conditions or by agreement or by other provisions of this Act.¬†Find out how our employment and incentive practice provides legal advice and services to impose non-compete clauses against former employees in UAE competition clauses at the time of termination of the employment contract after notification of notice. In the absence of notice, this restrictive contract applies from the date the worker is effectively no longer employed by his former employer. Restrictive non-competition, confidentiality and non-invitation agreements are a common practice in the United Arab Emirates to protect sensitive business data. Over the years, several alliance changes and the inclusion of restrictions have been made, with encouragement and support, to compensate for the interests of all parties involved. As a result, the United Arab Emirates has attracted expatriates to work and build lives in this robust economy, making it a majority of the workforce. While UAE labour laws clearly state the conditions of competition in an employment agreement, it is only if they are supported by expertise and experience that the various provisions of UAE laws that allow these inclusion clauses for trading partners and shareholders can be inherited. In the event of ineffectiveness of the incompetent provision, the courts remove it entirely, when they are considered unreasonable in time, place and/or business, rather than a “blue pencil” of such agreements. In summary, employers must ensure that competition bans provide for a small geographic restriction, short duration and a specified activity.

Where a worker violates a non-competition obligation, the employer can go to the courts of the United Arab Emirates for compensation for the injury suffered, provided that the employer can prove that he or she suffered the damage directly as a result of the offence3. In Light of this risk, Section 127 of UAE Federal Law 8 of 1980, as dended (“UAE Labour Law”) allows UAE companies to impose restrictions on their employees after they cease to operate in order to prohibit them from competing with the company for a certain period after the termination of their activity. Article 127 provides that non-competition obligations are imposed only to the extent necessary to protect the legitimate business interests of the company and, therefore, restrictions on the time, place and nature of the work must be limited.