# signed contract - not started job yet - want to change jobs - free zone -



## dvldvl3 (Dec 16, 2011)

Hello, my first post here. Please advise. I have looked through various threads and postings for a few hours and have not really found a concrete answer. The info always differs and sometimes contradicts.

In summary;

I agreed to a job a week ago with company1 and am due to start in a few weeks. (they have not paid airfare or anything yet).

They did not agree to the salary I asked for. But I accepted the lower amount they offered as I have worked for the company previously in the US, and they have a Dubai office. I had a better offer for a different region within the Middle East (non UAE) from a different company but decided to stick with the company I knew.

I signed a contract from the company1 Dubai office in English through email and returned it in English to the Dubai office by email. It states a 12 month non compete clause upon termination of contract within the UAE.

The company is in a free zone.

I have sent them copy of my passport/degree already for processing of visa.

- - - - 
ISSUE
- - - - -

Another company2 in the same free zone who I have also worked for in the past and whom I have a good reputation with have offered me a position with +35% base salary. (all other allowances are same). This amount is what I originally aksed for from company1.

Company2 & Company1 are true competitors within the industry. Both large companies.
- - - - - - 

Question. 

Can I quit company1 before I move to Dubai and join company2?

It is the same freezone, and I signed the contract in english already with company1.

My thoughts - 

The contract was not in Arabic (not sure if needs to be for a freezone?) and I have not started yet, so technically am not in the country and they have wasted no expense...

Could they take me to court in UAE? (it falls within Freezone so no they cant?)

Could they ban me from working in UAE or that freezone? (it falls within the freezone so no they cant?)

Would I have any issues starting a job with company2 in a few weeks?

- - - - 

WORK AROUNDS?
- - - - - 

If there are issues above that will prevent me from joining company2 (apart from ethical ones), please let me know.

If there are issues, I thought perhaps company2 could employ me in a different middle east country - e.g. saudi/qatar etc as they have offices there. I would just 'live' in dubai and work remotely for 'saudi' or 'dubai'. I would technically not be working in the UAE and the 'non compete' clause would therefore be invalid/not applicable ???

More creative - They offer the contract to my wife and pay the salary to her. She "works" for company2 while I stay at home...

Would those 2 workarounds work?? (assuming company2 agreed to them..)


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## nm62 (Dec 11, 2008)

Only if you have got a offer letter from company 2 and you have signed it then call/mail company 1 immediately and tell them officially that you will not be able to join. 

Actually you can call company 1 right now itself and speak to them informally.
If they have not started of the process, then everything is ok...

Currently due to holiday season they will take 1 month to process visa... 

Now i do not want you to refuse company 1 and company 2 never comes back with an offer letter...


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## dvldvl3 (Dec 16, 2011)

Thanks NM62.

Getting the company2 job is not an issue. My friend knows the CEO. It is a guaranteed job regardless of what happens. I could sign the offer letter at any time and it would be fine.


My worry is that even if I have a new contract with company2 could company1 / freezone block me from working?

I dont want to quit company1, accept company2 and then move to Dubai and OOPS... you are banned/not allowed to work for company2 and company1 are taking you to court...


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## BedouGirl (Sep 15, 2011)

There is no ban on a free zone visa, to the best of my knowledge. If the visa is in process, it can be cancelled. Perhaps, as a gesture of goodwill from your side, you may want to offer to pay company one for any expenses they jncur up to and including cancellation? Did you send them any documents yet? If not, I don't think they can have started your visa. As you haven't started working for the company, I am not sure the non-competition clause is effective yet. You have not received any salary, you have not accessed any of their records, so how could it be? In this country, your employment is really covered by your Arabic contract although anything you agree to by signing it would probably stand in court but, in this case, you don't yet work for them.


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## dvldvl3 (Dec 16, 2011)

Thanks BedouGirl.

I think they may have already started the visa process, as I had to email them a copy of my passport and copy of my attested degree from the UAE embassy/office (in my local country).


will the company2 visa application automatically cancel the visa application from company1?

What happens if company1 dont cancel it, just to leave me in limbo (effectively blocking me from getting a visa elsewhere).. can they do that?


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## BedouGirl (Sep 15, 2011)

The application from company 2 could not be started till the other one is stopped and cancelled. Each company is allowed x number of visas on their trade licence. To use a visa space in the way you are asking about is not viable - firstly, it wastes a place that they could use for business. Secondly, they cannot deliberately do that without completing the visa process including your medical which you wouldn't be doing, thirdly, each company has to prove that they pay the people on their visas each month otherwise their visas can be blocked for renewals and new applications and they risk being fined. You need to bite the bullet and tell the first company that you don't want to work for them. Dubai is a small place and you could end up tarnishing your reputation in your field if company 1 were to choose to put the word out which may affect you in the marketplace. Last, but not least, your new company would be a good source of assistance for you in all of this.


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## dvldvl3 (Dec 16, 2011)

OK - now just playing Devils Advocate.

Could I still move jobs after 6 months? (e.g. quit the day before my 6 month probation period ends) ?

Any ban? (no because freezone?)
Could they enforce the 12 month no competitor rule?a


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## BedouGirl (Sep 15, 2011)

dvldvl3 said:


> OK - now just playing Devils Advocate.
> 
> Could I still move jobs after 6 months? (e.g. quit the day before my 6 month probation period ends) ?
> 
> ...


For the last question, I would say yes. I will now teach you your first Arabic word - challas. That means finished, enough . Good luck.


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## dvldvl3 (Dec 16, 2011)

BedouGirl said:


> For the last question, I would say yes. I will now teach you your first Arabic word - challas. That means finished, enough . Good luck.



sorry i did not understand what you meant... 'yes'.

Yes they could enforce the ban?

or Yes I can leave just before my probation ends within 6 months and no negative consequences because it is a 'free' zone.. (i know free does not mean that connotation..)


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## BedouGirl (Sep 15, 2011)

Yes, they can enforce the no competition clause because you have worked for them.


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## fcjb1970 (Apr 30, 2010)

You have not actually signed a contract but really signed job offer agreement or a Letter of Intent. Something that basically describes the details of the main conditions of employment which will be in the formal contract.

While I would say it is bad form to have agreed to the terms of employment and then turn around and change your mind, I don't think they can enforce a non-competition clause. At best it is a stretch, and doubt they would see it as worth the cost and effort to try. Like BedouGirl pointed out, I would be more concerned about my reputation.


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## Rutilius (Jan 22, 2011)

fcjb1970 said:


> ......I would be more concerned about my reputation.


That works both ways. They would tend to lose their reputation too, Not likely that they can do a thing unless he is already in the UAE on their visa and as long as he has not signed the Arabic employment contract (The one that is presented to the MoL).


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## Kawasutra (May 2, 2011)

> Another company2 in the same free zone who I have also worked for in the past and whom I have a good reputation with have offered me a position with +35% base salary. (all other allowances are same). This amount is what I originally aksed for from company



You accepted a salary 35% below your expectations in the first place..
Don`t get it.


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## katiepotato (Apr 29, 2008)

Just picking up on a few points made above:

Bedougirl mentioned that companies have to prove that they are paying their employees each month. Outside free zones, this is known as the Wage Protection System (WPS) and MOL keeps track of transfers made to employee bank accounts to ensure that they are as per the salary mention in contracts. As far as I am aware, WPS does not apply to free zones (yet). Employers are required to keep records but are not routinely required to produce these. 

A dispute raised between a free zone employer and employee would first go to the relevant free zone's mediation department (similar to that at MOL) but if not resolved there could still go to court. Free zones are governed by the same laws and legal system as onshore companies, they just don't have the direct relationship with MOL. 

In practise, non-compete clauses (unless for a board member or shareholder) are virtually unenforceable. They cannot be applied in a way that causes the employee to lose their living, so unless the employer is so concerned about the level of information the employee has access to and the damage they could do in the market that they are willing to put the employee gardening leave for a year, chances are some agreement can be reached about departure. 

Going back to the OP - your new company would be unable to process your visa without a signed dual language contract (most free zones have a set format) so they might have started preparing forms but it's unlikely they have started processing. Even if they had, it is possible to bring this process to a halt. If the start date mentioned in your offer letter/contract has not been reached then the contract has not come into effect. I agree with Bedougirl that you just need to bite the bullet and tell Company 1 that you will not be joining them.


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