Can a UAE employment contract stop me working for a competitor?
Non-compete clauses appear in most UAE employment contracts and in many contractor and platform agreements. The Labour Law allows them, but only within set limits, and it voids any condition that gives the worker less than the law does.
What the Labour Law allows
Article 10 of the Labour Law lets an employer include a non-compete condition only where the job gives the worker access to the employer's clients or work secrets. The condition must be specific in time, place and kind of work, and only to the extent needed to protect the employer's legitimate business interests. The non-compete period may not exceed two years from the expiry of the contract.
The same article says the condition is null if the employer ends the contract in breach of the law, and that a claim by the employer for breach of the non-compete is not heard after one year from the date the breach was discovered. The Executive Regulation can exclude certain skill levels or professions from the condition altogether.
What a signer looks for
A clause that names no territory, no period, or no kind of work is wider than Article 10 describes. So is one that runs for longer than two years, or that covers a job with no access to clients or secrets. Article 65 adds that the law's rights are a minimum: any condition that gives the worker less is null unless it is more beneficial to the worker, and so is any waiver of those rights.
Where the agreement is a standard form the worker could not negotiate, Article 223 of the Civil Transactions Law also applies: a court may modify unfair conditions in a contract of adhesion or exempt the adhering party from them, and an agreement to the contrary is void.
Questions
- How long can a UAE non-compete last?
- Article 10 of the Labour Law caps the period at two years from the expiry of the employment contract.
- Does the non-compete survive if the employer dismisses me unlawfully?
- No. Article 10(2) says the condition is null if the employer terminates the contract in violation of the law.
- Can the contract say I waive my rights under the Labour Law?
- Article 65 treats any release, reconciliation or waiver of the worker's rights under the law as null if it violates its provisions.
Articles on this page
- Article 10Labour LawThis article lets an employer put a non-competition condition in a work contract.
- Article 65Labour LawCited in Fahm reportsThis article gathers final provisions that protect the worker.
- Article 223Civil Transactions LawCited in Fahm reportsThis article deals with unfair conditions in a contract of adhesion, meaning a contract whose terms one side effectively had to accept as offered.