# Moving jobs after termination



## Skem432 (Sep 22, 2011)

Hi Guys 

I have just lost my job because of the bad economic situation in my company, I just finished my first year. There is a clause in my contract that I cannot work for any competitors for 2 years.

Can my employer stop me from joining the competitor company. My argument is that I did not leave the job I was terminated.


Regards
Skem


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## Ogri750 (Feb 14, 2008)

Have you got an NOC from your previous employer?


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## Skem432 (Sep 22, 2011)

Ogri750 said:


> Have you got an NOC from your previous employer?


Hi Ogri750 Thanks for replying, I was just told about the termination by my boss, It will take some time I guess to get the official process finished.

I don't know whether they will give me a NOC or not.

Regards
Skem432


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## fcjb1970 (Apr 30, 2010)

They terminated you, they cannot enforce a no compete clause. You do not need a NOC either. Plus if it is over the year mark they have to pay you the full 21 days of EOS . Also one way ticket home if you want.


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## Elphaba (Jan 24, 2008)

fcjb1970 said:


> They terminated you, they cannot enforce a no compete clause. You do not need a NOC either. Plus if it is over the year mark they have to pay you the full 21 days of EOS . Also one way ticket home if you want.


Correct


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## Skem432 (Sep 22, 2011)

Thank you 

Can you give me any references to ministry of labor website where I can get the details.

Regards
Skem432


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## rsinner (Feb 3, 2009)

Skem432 said:


> Thank you
> 
> Can you give me any references to ministry of labor website where I can get the details.
> 
> ...


this is the labour law - will come in handy, esp. clause 127. http://www.deg.gov.ae/sitecollectionimages/content/pubdocs/uae_labour_law_eng.pdf

This website will come in handy. Non-Compete Clauses Under UAE Laws - Employment and HR - United Arab Emirates

Not sure if you can see this without registering, but you should note this paragraph: Article (909) of the Civil Code states:
3.	It shall not be permissible for the employer to rely on that agreement if he terminates the contract without any act on the part of the worker justifying that course, and likewise it shall not be permissible for him to rely on the agreement if he commits any act which justifies the worker in terminating the contract."

Seems like the advice above is correct. 

other useful links
Hadef & Partners - UAE LEGAL DEVELOPMENTS, NEWS AND ANALYSIS - NON-COMPETE CLAUSES IN EMPLOYMENT CONTRACTS IN THE UAE
the civil code http://www.expatforum.com/expats/du...-dubai/53117-uae-civil-code-2.html#post583691


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## Skem432 (Sep 22, 2011)

Hi Thanks for the information. In my contract it states that

1)Employee to abstain joining other competitive company inside UAE for 2 years after end or

Termination of services from Co article 127 of labor law no 8 of year 1980

I am confused about the second line does that mean even in case of my termination from the company I cannot work for the competitor company.

How can they enforce this.

Regards
Skem432


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## fcjb1970 (Apr 30, 2010)

You asked a question. The question was answered, and everyone that has posted agreed with the answer. You asked where you could find information, multiple links were given or you could have tried  Labor Law Information.

So what are you still asking?


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## saraswat (Apr 28, 2012)

Skem432 said:


> Hi Thanks for the information. In my contract it states that
> 
> 1)Employee to abstain joining other competitive company inside UAE for 2 years after end or
> 
> ...


The specific article you have mentioned is as follows:

"If work assigned to the employee allows to acquaint with the employer's clients or have access to the secrets of his work, the employer may oblige the employee that after termination of the contract he may not compete with him or take part in any business interest competitive to the employer's. Such agreement shall be valid only if the employee has reached the age of 21 years at the time of its being executed and if the agreement is limited with respect to the place, time and nature of work to the extent as is necessary to safeguard the lawful interest of business."

Source: http://www.mol.gov.ae/newcontrolpanel/Attachments/21062012/labour law no.8 year 1980.pdf

Sounds like your non-compete clause would still be in effect even though you are terminated, that is if you are above the age of 21 and on a limited contract (which i am assuming), contrary to what you have been told on the forum. Of course that is from my reading of the above mentioned text, it would be best to confirm such from a lawyer to be sure... hope that helps..


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## fcjb1970 (Apr 30, 2010)

@saraswat...read the second part you underlined. 

_and if the agreement is limited with respect to the place, time and nature of work to the extent as is necessary to safeguard the lawful interest of business_

Basically is saying there have to be very specific cases defined where this is upheld. So the employer could argue that this guy cannot work on some particular part of a project for another company because he knows x,y,z.

Very different from being able to say, you cannot work for another company in this field

In general, non-compete clauses are very difficult to enforce and except at the very highest levels would a company even waste their time and money pursuing. They exist so that someone cannot take their clients/projects with them when they leave. I am pretty confident that if this guy had to post the question on a forum he is not at that level and not stealing customers from his previous company.


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## Guest (Oct 3, 2012)

I am pretty confident that if this guy had to post the question on a forum he is not at that level and not stealing customers from his previous company.[/QUOTE]

A rather unecessary and derisory comment. The guy asks a reasonable question and rather than falling foul of the red tape and the numerous hidden laws of this country, he then seeks to double check. I don't think that called for unhelpful responses.


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## saraswat (Apr 28, 2012)

True non-compete clauses are difficult and actually pretty complicated to enforce. But he did say, his contract is governed by this specific clause, also I took the meaning of 'limited in nature of work etc..' to mean a limited basis contract, which is usually reserved for professionals/individuals with a specific skill set. Maybe I'm wrong, and it is what you are inferring it to be. That is why I recommended for him to seek legal advice as there is a lot of ambiguity here..


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## Skem432 (Sep 22, 2011)

Hi Saraswat

Thank you again for clearing up, my contract was a unlimited term contract. Can you suggest me any reasonable solicitor.

Regards
Skem432


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## fcjb1970 (Apr 30, 2010)

MOL is not going to refuse issuing a new visa based on a nebulous section of the Labour Law mentioned in someones contract. The non-compete clause would need to be enforced by the company.

To the OP, ask yourself, will my former company spend AED 250K to try and keep me from working at a competitor and maybe lose the fight?

My guess, if they let you go because business is slow, the answer is no. Hopefully that does not offend @sandstorm's sensibilities


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## saraswat (Apr 28, 2012)

Skem432 said:


> Hi Saraswat
> 
> Thank you again for clearing up, my contract was a unlimited term contract. Can you suggest me any reasonable solicitor.
> 
> ...


Sorry Skem432, I personally cannot recommend a solicitor as I have not had any experience personal/professional in this regard. A google search and round of phone calls might be the order of the day... Here's something to help you get started though:

Dubai, United Arab Emirates Labor Law Firms, Lawyers

Hope that helps, oh and good luck...


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