How enforceable is a non-compete clause in a mainland Dubai company? I am planning to take up an offer with another company in the same industry. In what circumstances can my current employer enforce the clause or prevent me from joining the new company?

Answer: Pursuant to your queries raised, as you are employed by a mainland Dubai company, the provisions of the UAE employment law and the subsequent cabinet resolution are applicable.

In the UAE, an employer may impose a non-compete restriction on an employee who has access to its customers or confidential business information. However, it must specify the relevant geographical area, duration and type of work. In any event, the non-compete period cannot exceed two years after the employment ends.

This is in accordance with the Article 10(1) of the Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations (the 'Employment Law') which states:  

"Where the employee performs a work which gives him access to employer's customers or business secrets, the Employer may make a provision in the employment contract that the employee shall not compete with or be engaged in any business which competes with him in the same sector after the expiry of the contract. Such clause shall specify the place, time, and type of work to the extent necessary to protect the legitimate business interests, and the non-competition period shall not exceed two years after the expiration of the contract."

Further, if an employer unlawfully terminates an employee's employment, the non-compete restriction will no longer apply. This is in accordance with the Article 10 (2) of the Employment Law, "This requirement shall be nullified if the employer terminates the employment contract in violation of the provisions hereof."

(Source: Khaleej Times)