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ARTICLE · 29 JULY 2024

United Arab Emirates: Restrictive Covenants

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In the United Arab Emirates (UAE), post-termination restrictive covenants are most common in employment contracts related to senior employees or those who have a material effect on the employer's business...

United Arab EmiratesEmployment and HR
Nanda Al Qazaz
Nanda Al Qazaz
Jad A. Taha
Jad A. Taha
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In the United Arab Emirates (UAE), post-termination restrictive covenants are most common in employment contracts related to senior employees or those who have a material effect on the employer's business, including valuable connections, relationships or access to confidential information.

General Principles

UAE courts would enforce restrictive covenants in limited cases. The scope of the restrictions must be limited and precise to the most extent possible, and it should not be wider than necessary to protect the employer's legitimate business interests.

UAE courts tend to apply a reasonableness test in cases relating to the enforceability of restrictive covenants. There are four main factors the courts rely upon in making their determination: (i) the applicability to the employee in question; (ii) the duration; (iii) the territory; and (iv) the scope/definition of each of the restrictive covenants in the underlying employment contract (e.g., "competing"). In

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