# non compete clause effect on a government hosp.



## coder123 (Jul 31, 2015)

Hi.. hope u guys can help me with my dilemma, i am a coder working as an outsource in a private company, just recently applied to cleveland and fortunately waiting for my papers to be processed, all is well until our company release an agreement and involves a non-compete clause that I will not be able to be employed by another company with the same business as my current company. I have read in the net, that if I am a employee from a private company going to a government, the non compete clause will not take effect,? Is this true? Thank you in advance. P.s. i believe that my cleveland clinic is a different business to my current outsource private company.


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## Stevesolar (Dec 21, 2012)

Hi,
Whilst it is normally the case that transferring from private company to government makes it harder to enforce a non-compete clause - be careful on definitions as to whether a new company that you wish to join is truly defined as being part of the UAE government.

Cheers
Steve


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## coder123 (Jul 31, 2015)

Thank you very much for your kind reply.. hmm.. i have asked about cleveland clinic, they say it is a semi govt hosp.. will that constitute a govt hosp? Thank you in advance. Follow up ques, i have not yet signed the agreement, ive read that I can decline signing the agreement and my employer cannot obliged me to sign it. Is this true? Thank u..


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## Stevesolar (Dec 21, 2012)

coder123 said:


> Thank you very much for your kind reply.. hmm.. i have asked about cleveland clinic, they say it is a semi govt hosp.. will that constitute a govt hosp? Thank you in advance. Follow up ques, i have not yet signed the agreement, ive read that I can decline signing the agreement and my employer cannot obliged me to sign it. Is this true? Thank u..


Hi,
Which agreement are you referring to - existing employer or potential new company?
If you are talking about your existing employer - they cannot get you to sign a non-compete clause just as you are about to leave them!
If they wanted to have a non-compete clause as part of your employment conditions then it should have been included in your original signed contract.
If you don't already have a signed contract with a non-compete clause - then they can't enforce such a clause (unless you are silly enough to sign one now!!!).
The only paper you should be signing now is the visa cancellation form that states that you want you visa cancelled and that the company have paid all outstanding monies to you.
Whatever you do - don't let them trick you into signing anything more onerous than that!
Cheers
Steve


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## rsinner (Feb 3, 2009)

I am guessing that your present employers do not know yet that you are leaving and that they are revising the employment agreement. DO NOT SIGN IT. You should try and delay the signing as much as possible. If they want to fire you for not signing it, you can always approach the MOL.

Non compete is NOT the same as NOC and the related labour ban. Non compete is contractual; the whole NOC thing is a matter of law/regulation. Your non compete will still be applicable if you join a govt. company and the employer can sue you. (I had the exact same situation and this was the informal legal advice I had received)


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## Stevesolar (Dec 21, 2012)

rsinner said:


> Your non compete will still be applicable if you join a govt. company and the employer can sue you. (I had the exact same situation and this was the informal legal advice I had received)


In my opinion - you were badly advised.


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## coder123 (Jul 31, 2015)

Yes, my company does not know I am leaving them, they suddenly issued this agreement using big words to confuse us but I clearly notice the part of non compete clause. For 1 year I have been with the company, no clause was ever been in my contract. At the mean time I am still waiting for my security check that is why I cannot resign yet,. Thank you very much for your replies. Jus wondering even though my company is a healthcare company providing outsource help and cleveland clinic is a different business entity which is a semi govt hosp providing a different service. I am just thinking that they are a differnt business class and will not validate competition between them. What dyou think guys?


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## Stevesolar (Dec 21, 2012)

Hi,
May I suggest that you have a good read of the text from Al Tamimi (a local specialist law firm). Interestingly, it is actually written with the employers view in mind - rather than the employees.
POST TERMINATION RESTRICTIONS: HOW USEFUL IS A STICK WITHOUT A CARROT? - Al Tamimi & Company
It shows that for a non-compete clause to be properly enforced - it needs to fulfil certain criteria.
You need to compare this "checklist" to your exact circumstances - then you can take a view on it.
Cheers
Steve


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## rsinner (Feb 3, 2009)

Stevesolar said:


> In my opinion - you were badly advised.


Actually I will be happy to be wrong - if you have the time and do not mind, can you point me to anything online if possible?

My non compete was limited in industry, time and geography. I was told by the GC of my new employer as well as by the informal advice (from the friend of a friend) that the non compete will be enforceable even though I was joining a govt. company. 

I am very sure my previous employer had tried to find out if they could have put a labour ban on me and were not able to.


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## Stevesolar (Dec 21, 2012)

rsinner said:


> Actually I will be happy to be wrong - if you have the time and do not mind, can you point me to anything online if possible?
> 
> My non compete was limited in industry, time and geography. I was told by the GC of my new employer as well as by the informal advice (from the friend of a friend) that the non compete will be enforceable even though I was joining a govt. company.
> 
> I am very sure my previous employer had tried to find out if they could have put a labour ban on me and were not able to.


Hi,
Companies cannot by definition compete with governments (as they are a monopoly).
Government employees are not under UAE labour law.
Companies need to prove loss of revenue in order to successfully prove a non-compete case - they would not be able to prove loss of income against a government.
The list goes on........
Gulf news legal section had a question a while back. Details here:-
Non-competition clause in labour contract | GulfNews.com
Cheers
Steve


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## rsinner (Feb 3, 2009)

Stevesolar said:


> Hi,
> Companies cannot by definition compete with governments (as they are a monopoly).
> Government employees are not under UAE labour law.
> Companies need to prove loss of revenue in order to successfully prove a non-compete case - they would not be able to prove loss of income against a government.
> ...


Thanks Steve. I actually work for a commercial company rather than a government department, so probably most of the arguments that apply for the govt. will not work for us. 
In any case, an academic exercise as the boat has sailed for me a few years back...


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## coder123 (Jul 31, 2015)

Hi.. thank u for your responses... I already resigned without signing the agreement. And now the company is threatening me that the will file for against me because I did not complete 2 years as stated in my contract.. i reread my contract.. it states that the duration of the contract is 2 years but i am not bound to the company for 2 years..


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