Non-Competition Clause in Employment Contract

By Suneesh | April 23 , 2018 | 01

Whereas Article 127 of Law No. 8 for 1980 and amending laws had given the employer the right to require that the worker (who works for him and is permitted within the scope of his work to know his clients or have access to his secrets) may not compete with him or participate in a competitive work upon the completion of the contract. In order to set a unified base for the execution of the mentioned article, the following shall be taken into account:

The employer, upon the ratification of the labour contract, may add the non-competition condition, provided that the following is specified in the contract:

1- Place: Does not exceed the borders of the United Arab Emirates and may include one or two emirates, or the entire state.

2- Time: The validity of the non-competition condition may not exceed two years from the date of the contract termination.

3- Type of Work: Determine the type of work that may not be practised as a condition for non-competition.

4- The competent employees at the Ministry may not ratify the labour contract if the above-mentioned requirements were not present in the contract.

The employer may not set a condition to prevent the worker from working in the country (except in accordance with the provisions of Article 127 and if all conditions apply).