# No compete clause and free Zones



## davo1 (Jun 25, 2013)

Can anyone recommend a good employment lawyer in Dubai.

I work for a building contruction company in Kizad Industrial zone (though the company is not registered in A free zone) and would like to break my fixed term contract aftet 4 yrs and start my own business in a trade free zone such as JLT. I wont be competing directly with the company I worked for but there may be some cross over of services that I will be offering as a consultant in the same field (building industry).

Question is does the No Compete clause apply if I base myself in a free zone as a consultant? Keep in mind I will have dealings with a very small number of clients that my old company also serviced. 

Any advice greatly appreciated.

Davo


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## Chocoholic (Oct 29, 2012)

It's very very hard to make a non-competitive clause stand up in court, mainly because it's illegal to inhibit someone from earning a living through their skills, experience etc. They come as standard in most contracts, but most employers would never do anything about it.


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## saraswat (Apr 28, 2012)

Actually a non-compete clause is not illegal per se. It is hard to make it stand up in court yes, but if the clause is drafted properly and follows the mandates provided by the Labor Law then it will be considered a legal and binding clause.
Most of the clauses do not follow the guidelines in terms of scope of work, length etc.. they are just too generic, and hence don't stand up in court.

@OP I would speak to a lawyer or the MOL, to find out how the law applies to your specific situation ...


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## rsinner (Feb 3, 2009)

saraswat said:


> Actually a non-compete clause is not illegal per se. It is hard to make it stand up in court yes, but if the clause is drafted properly and follows the mandates provided by the Labor Law then it will be considered a legal and binding clause.
> Most of the clauses do not follow the guidelines in terms of scope of work, length etc.. they are just too generic, and hence don't stand up in court.
> 
> @OP I would speak to a lawyer or the MOL, to find out how the law applies to your specific situation ...


Agreed. Non compete clauses are actually enforceable in UAE if the items that Saraswat mentioned are there.
OP, does your contract have something mentioned? Also, consult a lawyer.


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