# Non Compete Issue



## helloJ (Feb 21, 2018)

Hi,

I worked for a DMCC freezone company for 3 years+ where my contract moved from limited contract to unlimited contract.

I got an offer from my client and resigned my company and joined them indirectly through a consultancy. Now they are threatening me that they will ban me.

I have a non-compete clause in my contract as well as there is a clause that I could not join directly or indirectly at their clients.

What can I do now?


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## Stevesolar (Dec 21, 2012)

helloJ said:


> Hi,
> 
> I worked for a DMCC freezone company for 3 years+ where my contract moved from limited contract to unlimited contract.
> 
> ...


Hi,
What was the wording of the anti-compete clause?
How long was it for?
Which locations did it specify? - Dubai, UAE, MENA, Whole world?
What were the penalties mentioned?
Did you sign and agree the clause in your contract?
Cheers
Steve


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## helloJ (Feb 21, 2018)

Stevesolar said:


> Hi,
> What was the wording of the anti-compete clause?
> How long was it for?
> Which locations did it specify? - Dubai, UAE, MENA, Whole world?
> ...


Thanks Steve for your swift response.

To refrain from directly or idirectly competing with Employer or working for another competing organization in the practice of IT Consultants / Computer Software House with in UAE for a period of 12 months following the expiration or termination of Employment Contract

To refrain from directly ot indirectly soliciting business from,or attempt to sell, license or provide the same or similar products or services as are provided to any customer or client of the employer for a perid of 12 months following the expiration or termination of Employment Contract

I signed this contract.


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## Stevesolar (Dec 21, 2012)

helloJ said:


> Thanks Steve for your swift response.
> 
> To refrain from directly or idirectly competing with Employer or working for another competing organization in the practice of IT Consultants / Computer Software House with in UAE for a period of 12 months following the expiration or termination of Employment Contract
> 
> ...


Hi,
To be enforceable - these clauses need to be less restrictive, typically 6 months in the same Emirate as well as the employee needs to be in possesion of company secrets and the company needs to prove loss of income - as a result of employee moving to a competitor.
Cheers
Steve


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## XDoodlebugger (Jan 24, 2012)

Isn't a freezone visa pretty much exempt from these non-compete agreements as well?

I have heard it needs to specify an Emirate. ie; Dubai or Abu Dhabi, etc, and cannot be the entire UAE.


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## rsinner (Feb 3, 2009)

First off, the courts will decide on the day whether a non compete is enforceable or not. Precedents mean nothing.

A lot of organisations use non competes for their nuisance value and send threats of court action to the employee and the new employer etc - a number of time it works.

In any case OP has already joined a new organisation. So the only thing to do is to wait and watch what happens (and be prepared for the worst).

This is not an MOL matter though - it is for the courts to decide (since your joining a competitor is not in violation of clause 127 of the labour law)


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