Non-compete clauses are an essential aspect of employment agreements in the UAE, especially in restricted period employment agreement.
These clauses protect employers’ business interests by prohibiting employees from engaging in similar activities for a restricted period after the employment agreement’s termination.
This article will explore the UAE’s Labor Law’s non-compete provisions and answer some of the most common related questions.
Office of Al Mulla. Whatsapp: Click here. Location: Dubai. Phone: 00971501961291.
Table of Contents
When Do Non-Compete Terms Apply in Restricted Period Employment Agreement?
In restricted-period work agreements, an employee may only be compelled to honour non-compete terms if these terms are mentioned in the employment contract.
The non-compete clause should specify the time, place, and type of work necessary to protect the employer’s legitimate business interests.
The non-compete period should not exceed two years after the employment agreement’s expiration, which is the maximum restrictive period.
Exceptions to Non-Compete Clause.
There are exceptions to the non-compete clause in restricted-period employment contracts.
For instance, if the employer terminates the employment agreement violating the law, the non-compete clause will be void.
Similarly, an employee will be exempted from the non-compete clause if the contract is terminated during the probation period or with the former employer’s written consent.
If an employee resigns, they may seek an exemption from the non-compete clause from the former employer.
Enforcing Non-Compete Clauses.
Employers can enforce their non-compete rights by filing a complaint with the Ministry of Human Resources and Emiratisation (MOHRE) and subsequently starting civil case proceedings.
This process must be conducted within one year from the date of discovering the violation.
Al Mulla, a labour lawyer and legal consultant in the UAE, is well-versed in labour cases, including restrictive covenants.
Employers and employees can seek his expert guidance and representation to ensure compliance with the UAE’s Labor Law’s non-compete provisions.
FAQs about restricted period work agreement.
Conclusion.
Restricted period employment agreement in the UAE require that non-compete clauses be properly drafted and agreed upon by employees to protect employers’ business interests.
Employers must understand the rules surrounding non-compete clauses to enforce their rights, while employees must understand those post-termination restrictions to avoid legal consequences.
By adhering to the UAE’s Labor Law’s non-compete provisions and seeking legal guidance from experts like Al Mulla, employers and employees can contribute to a fair and just employment environment.
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 read about the Top Employee Rights and Obligations to Know in the UAE Law Dubai. Defend Your Rights with the Best Employment Lawyers Dubai.
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.