A restraint period employment contract is a clause in a contract that prevents former employees from disclosing confidential information or competing with the employer.
The duration of the restriction should be between 3 and 12 months, clearly stated in the contract.
This article will discuss the restraint period in UAE employment contracts, their duration, the changes introduced by the new labor law, and related legal services for 2024.
Contact Al Mulla Labor Lawyer in Dubai. Click the WhatsApp icon below or go to the Contact Us page. Locations: Dubai, Abu Dhabi and Ras Al Khaimah.
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Restraint Period Employment Contract
A restraint period in an employment contract restricts an employee’s activities after they leave their current employer.
This provision protects the employer’s business interests by preventing former employees from disclosing confidential information or competing with the employer.
The non-compete clause should be included in the employment contract and not in any additional or supplementary agreement. This clause should clearly state the duration of the restriction, which must be between 3 to 12 months.
New Labour Law NON Compete Clause UAE 2024
Currently, in 2024, it’s mandatory for employers to enter into a non-compete agreement with their employees.
Under Article 10 of the new labour law, an employer can require an employee not to compete with their employer or engage in any competing project in the same sector after the contract expires.
Provided that the requirement is specified in terms of time, place, and type of work to the extent necessary to protect the legitimate business.
The non-compete agreement must specify a period, not exceeding two years, during which the employee is prohibited from working for a prospective employer that competes with the former employer.
The agreement must specify the prohibited geographic area and work types during the specified period to protect the former employee’s business interests.
Employers must comply with the new labour law and enter a non-compete agreement with their employees to safeguard their commercial interests.
Failure to comply with the new law can result in legal consequences, including fines and legal action.
Legal Services related to Post Termination Restrictions UAE
Looking for legal counsel regarding restraint periods in UAE employment contracts? Al Mulla Lawyers offers expert guidance tailored to your needs.
Al Mulla Lawyers’ legal services related post-termination contract restrictions include:
- Consultation: Gain clarity on restraint period clauses and their enforceability in UAE labor law.
- Drafting and Review: Ensure your employment contracts comply with local regulations, minimizing legal risks.
- Negotiation: We advocate for fair and reasonable restraint terms protecting employers and employees.
- Dispute Resolution: Facing a disagreement over a restraint clause? Our experienced team can help resolve disputes efficiently.
- Legal Representation: Trust our skilled attorneys to represent your interests in negotiations, mediation, or court proceedings.
Al Mulla Lawyers prioritizes client satisfaction and legal excellence in navigating restraint period matters in UAE employment contracts. Contact us today for reliable legal support tailored to your specific situation.
FAQs about restraint period employment contract
Conclusion
The restraint period in an employment contract is a crucial provision that protects an employer’s business interests by preventing former employees from disclosing confidential information or competing with the employer.
The new labour law in the UAE has introduced significant changes to the non-compete clause, making it mandatory for employers to enter into a non-compete agreement with their employees.
Employers must comply with the new law and enter a non-compete agreement with their employees to safeguard their commercial interests.
To ensure compliance with the UAE labour law and the new labour law’s provisions, employers should seek legal guidance from reputable labour law firms such as Al Mulla Labour Lawyer & Legal Consultant.
Contact Al Mulla Lawyers today! Click the Whatsapp icon below or visit our Contact Us page.
Find us at these locations:
- Dubai: Deira, Port Saeed, Street 8, City Avenue Building, Office 705-708.
- Abu Dhabi: Corniche Street, Golden Tower, Office 22.
- Ras Al Khaimah: Al Nakheel, Al Maamoura Building (Emirates NBD Bank Building), Fourth Floor.
We recommend you learn about the best Employment contract review service from a labor lawyer and find the Best employment contract attorney near you in Dubai, Abu Dhabi, or RAK.
A legal consultant specializing in UAE labor law. He regularly publishes articles on the website and writes on various areas of UAE law, with a specific focus on labor law.
