Non-Compete Clauses Under UAE Laws

One of the most debated issues in an employment agreement is the legality of restrictive covenant provisions, such as a non-compete clause which prevents employees from working for a competitor upon termination of their employment agreement. Courts are generally reluctant in enforcing non-compete clauses where they impose an unfair set of conditions on the former employee. Non-compete clauses are examined taking into consideration the factual background specific to each employment agreement.

Definition of a non-compete clause

A non-compete clause is a written restrictive clause placed on the employee within an employment contract or ancillary agreement. Under this clause, the employee agrees to refrain from engaging in any activity which is directly in competition with that of the employer, for a limited period of time, within a limited geographical area and within defined fields of activity upon the termination of his employment contract, regardless of the