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Restraint period employment contract in Dubai: Essential Term

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restraint period employment contract

A restraint period employment contract is a contractual provision that restricts an employee’s activities after the termination of their employment.

This term is essential to protect the employer’s business interests by preventing former employees from disclosing confidential information or competing with the employer.

In the UAE, the new labour law has introduced significant changes to the non-compete clause, making it mandatory for employers to enter into a non-compete agreement with their employees.

This article will discuss the restraint period in an employment contract and the changes introduced by the new labour law in the UAE.

Office of Al Mulla. Whatsapp: Click here. Location: Dubai. Phone: 00971501961291.

What Is Restraint Period Employment Contract?

A restraint period in an employment contract is a provision that restricts an employee’s activities after they leave their current employer.

The purpose of this provision is to protect the employer’s business interests by preventing former employees from disclosing confidential information or competing with the employer.

A restraint lasts for a specified period, during which the employee is prohibited from engaging in certain activities.

Changes Introduced by the New Labour Law in the UAE.

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.

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 geographic area within which the employee is prohibited from taking up employment and the types of work that the employee is prohibited from doing during the specified period to protect the former employee’s business interests must also be specified in the agreement.

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.

Contract of Employment UAE.

A contract of employment is a legal agreement between an employer and an employee that outlines the terms and conditions of the employment relationship.

This agreement is mandatory under the UAE labour law, and employers must provide their employees with a written employment contract that complies with the UAE labour law.

The employment contract must include several essential terms, including the job title, duties and responsibilities, remuneration, working hours, leave entitlements, and termination provisions.

Employers must ensure that the employment contract complies with the UAE labour law and the new labour law’s provisions regarding the non-compete clause.

Al Mulla Labour Lawyer & Legal Consultant

Regarding labour contract cases in the UAE, Al Mulla Labour Lawyer & Legal Consultant is the best in the business. With over a decade of experience in labour law, they have extensive knowledge of local legislation and procedures.

Their skilled attorneys offer excellent service while following international standards, making them unrivalled in the industry.

FAQs about restraint period employment contract.

A restraint period employment contract is a provision that restricts an employee's activities after they leave their current employer, aimed at protecting the employer's business interests.
A restraint period can last for a specified period, as agreed upon in the employment contract.
In the UAE, the new labour law specifies that the non-compete agreement must specify a period not exceeding two years.

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 the office of Al Mulla via Whatsapp. Click here. Or visit us at our law firms: Dubai. You can also call us on phone: 00971501961291.

We recommend you learn about the Best Employment contract review service from labour lawyer Dubai UAE. Also, read about the Employment contracts domestic workers in UAE in Dubai 2023 and the limited contract UAE Dubai.

Furthermore, find the Best employment contract attorney near you in Dubai 2023.

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