# Dubai DMCC FREE ZONE VISA AND Non-Competition Undertaking



## rakesh-dubai (Jun 2, 2016)

Hello Experts,

I have joined dubai based IT company on limited visa for 3 year under dmcc free zone as an Senior software developer. At the time of signing contract ,My company also asked me to sign Non-Competition Undertaking agreement. My company is working for B2B market related product for sports industry .

Recent ally I have resigned from my company and they told me That as I have signed Non-Competition Undertaking agreement so I can not join any IT company in UAE as all IT companies are their competitor .

Is it really true Like I ca not join any company in uae according to non competition clause?

Is Employer can put one year ban on employee if limited contract will be break by employee before its expiration ?

Please provide you guidance 

1. To refrain from directly or indirectly *competing with the Employer or working for another competing organisation in the practice of Computer Software House within UAE for a period of 24 months *(not exceeding 24 calendar months) following the expiration or termination of the Employment Contract. 

2. To refrain from directly or indirectly soliciting business from, or attempt to sett, [license or provide the same or similar products or services as are provided to any customer or client of the Employer for a period of 24 months (not exceeding 24 calendar months) following the expiration or termination of the Employment Contract.


3. To refrain from directly or indirectly soliciting, inducing or attempt to induce any other employee of the Employer to terminate his/her employment with the Employer for a period of 24 months (not exceeding 24 calendar months) fottowing the expiration or termination of the Emptoyment Contract.


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## Stevesolar (Dec 21, 2012)

rakesh-dubai said:


> Hello Experts,
> 
> I have joined dubai based IT company on limited visa for 3 year under dmcc free zone as an Senior software developer. At the time of signing contract ,My company also asked me to sign Non-Competition Undertaking agreement. My company is working for B2B market related product for sports industry .
> 
> ...


Hi,
It's not worth the paper it is written on!
Firstly - non-compete clauses must be for a shorter period (6 months) and only in the Emirate of employment - Dubai.
Secondly - the company needs to prove a direct, definite loss as a result of employee taking up competitive employment.
Therefore - if employee goes to work for another company in a different Emirate and/or different business (with different client base) and no loss can be proven - then contract would not normally hold up in court.

Having said the above - be careful if you are going to work for a direct competitor that could see your present company losing business and also refrain from poaching existing employees when you move to new company.

Cheers
Steve


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## rakesh-dubai (Jun 2, 2016)

Stevesolar said:


> Hi,
> It's not worth the paper it is written on!
> Firstly - non-compete clauses must be for a shorter period (6 months) and only in the Emirate of employment - Dubai.
> Secondly - the company needs to prove a direct, definite loss as a result of employee taking up competitive employment.
> ...


Hello Steve,

Thanks for your prompt response. One more thing, my boss told me that If I will leave company than they will have one and half million AED loss as I am key developer . If i will go than they need to hire other candidate and needs to trained them. He told me he will file a case in that case as I am breaking limited contract and can put one year labor ban.

Please let me know is it possible for employer ?


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## Stevesolar (Dec 21, 2012)

Hi,
You are not responsible for indirect losses - so if you leave, they will need to find another developer.
Not sure they can impose a Labour ban - especially as you are in a Freezone.
If you are that important - it's now time for them to look after you and counter-offer, to keep you!
Cheers
Steve


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## insaned (Feb 13, 2016)

Regarding only the issue of the contract, I think if you break the contract with the employer you can get 1 year ban BUT from Ministry of Labor (6 months automatically from braking the contract + 6 months due to employer complain) however you are in the free-zone so things can go slightly different I think... But I'm not sure, so let's wait someone more knowledgeable on this to answer.

however,
The law over this matter is also changing swiftly, so be careful because sometimes people assume they can lift the ban with certain strategy and then they get a surprise because that is not applied anymore.


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## twowheelsgood (Feb 21, 2013)

insaned said:


> But I'm not sure, so let's wait someone more knowledgeable on this to answer..


Like all the people who have already answer the question on the posts above yours ?


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## rsinner (Feb 3, 2009)

also, while breaking a limited period contract there is some compensation to be paid - my recollection is up to 1.5 months salary, but do verify. Even consult the Ministry of Labour.


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