UAE Labour Law: Employer May Include Non-Compete Clause
New Provision in Article 10 of Federal Decree-Law No. 33 of 2021
Article 10 of the new UAE labour law provides employers with the ability to include non-compete clauses in employment contracts. This clause seeks to restrict employees from competing with their employer after the termination of their employment.
Previously, the UAE labour law did not explicitly address non-compete clauses. However, the new provision in Article 10 provides clear guidelines for the application of such clauses.
For a non-compete clause to be valid, it must meet the following conditions:
- It must be in writing and signed by the employee.
- The restriction must be reasonable in terms of its duration, scope, and geographic area.
- The restriction must be necessary to protect the employer's legitimate business interests.
If a non-compete clause is found to be unreasonable or unenforceable, it will be void and the employee will be free to work for a competitor.
The new provision in the UAE labour law provides employers with a valuable tool to protect their business interests. However, it is important to ensure that non-compete clauses are drafted carefully and in accordance with the law.
Updated: Sun 29 May 2022 1107 AM
Published: Sun 29 May 2022 1021 PM
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