5 controls that preserve the worker’s right to “non-compete”

The Ministry of Human Resources and Emiratisation stated that the Law Regulating Labor Relationships and its executive regulations permitted the employer to add the “non-competition” clause in the work contract, but this condition is “relative” and is restricted by time, place and type of work in a way that protects and takes into account the rights of both parties in a balanced manner.

The ministry clarified, in an indicative publication broadcast on its official pages on social media platforms, that there are five controls that preserve the rights of workers in the non-competition condition, including “that the agreement be specific in terms of time and place, the possibility of having a written agreement not to implement the condition after the expiry of the contract. Work, the term of the agreement does not exceed a maximum of two years from the date of expiry of the work contract. The condition is invalidated if the facility terminates the work contract in violation of the Labor Law. The lawsuit filed by the facility against the worker for violating the condition is not heard after one year from the date of discovery of the violation.

Article 12 of the Executive Regulations of the Law Regulating Labor Relations in the Private Sector stipulates that in the event of a dispute over the competition clause and the failure to settle it amicably, the matter shall be referred to the judiciary, and the burden of proving the damage shall be on the employer, and the non-competition clause does not apply if the reason for terminating the contract is due to The employer or his breach of his legal and contractual obligations.

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