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Non-Compete Provision

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There are new changes introduced to the Labour Laws in UAE. Those have been implemented from the second of February 2022. There has been a massive replacements made in the existing Labour Law along with new additions. Labour and Employment Lawyers and the Legal Consultants in Dubai, are the professionals to be hired for a better understanding, and elaborative explanations. Non-Competitions, Non-Disclosures, New Fixed Contracts, New Employment Systems etc, there are several things, which are revised and need to be understood. We are going to throw the light on Non-Competition Provision. As of the summary, we know that, Non-Competition means, not to join the competitor in the same industry, same region, same area for certain period of time.    

  • The modification is made in various ways. One of the most contentious agreements was always the employment agreement. It is the legality of restrictive covenant clauses.  Under the non-compete provision, an employee is forbidden to be a worker with the rival firm or company once their employment finishes. This restricts the worker to work with the business rivals in the marketplace.
  • Under the non-compete agreement, the worker is prohibited to work with the competitor. Under it, a restriction is imposed upon the employee for its employees which is included as a clause in the job contract.  Under the clause, an employee is not allowed to engage in any activity that is directly linked to the competition for their employer. There is a limited period attached to it.
  • It forbids the worker or the employee to work with previous employees’ competitors. In addition, they are prohibited from conducting business with the former employer’s clientele.
  • Moreover, the new labor laws of UAE also lay out the process that enables full-time employees to transfer to another company that might be a competitor. It also explains the foundation requirement that a non-compete agreement in the employee’s labor contract should meet.
  • Moreover, the new labor laws of UAE also illustrate that the employment non-compete contract provision states that the employee must not compete with the businesses. Furthermore, it also illustrates that it engages with any company or employer within the same sector.  Once the contract expires unless the natural worker’s work allows him access to the employer.
  • The non-compete competition clause is invalid or not enforceable if the employer violates the terms of an employment contract. It is also not enforceable in case of arbitrary dismissal. Furthermore, if it is agreed in wiring, non-compete provisions will not be enforced. Learn about Arbitrary Dismissal here.
  • This is enforceable where the employee has sensitive information which may harm the business or its activities. If the information is revealed it may result in financial harm to the business. In addition, it is also as per the new rule, if the employer or the business wants to maintain its economic interests, it should enter into a non-compete agreement.
  • The negotiations can take place over the non-compete agreement. Although the negotiations are purely based on whether the employee has sensitive information with him or not.
  • The labor lawyers have the full-fledged information concerning the alterations being introduced to the Labor laws in UAE. Furthermore, if you intend to explore more about the non-compete provision, lawyers can provide you with detailed information. Competent and composed lawyers are there to provide you with legal guidance. They are capable of offering the best quality services at affordable prices. 
  • Now, if it is mentioned in the contract, then there will be no Non-Competition implementation. By default the general Non-Competition for the two years will be applicable. Employer and Employee must check with each other and reach to a consensus. 
  • Arbitrary Dismissal is another new debate in revised UAE Labour Law. Now the Law is also not like before. Its validity and the true happening of the event need to be proved by the employee. If employee is not able to prove then he will be deprived of getting compensation. Please check with Labour and Employment Lawyers in Dubai for further help. The recommendation is Ask The Law – Al Shaiba Advocates and Legal Consultants. 

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