# Non compete in UAE



## rsinner (Feb 3, 2009)

Here is my situation.
I work in the corporate development (mergers and acquisitions) team in a specialized industry. I am looking to change jobs, but have a 6 months non compete in my clause. Does anyone have any experience on the enforceability of non compete clause in UAE?
I am not being an a$$hole by breaching the contract, but here are a couple of things which may force my hand:
a) This non compete was not there in the original contract I signed. However, when I started the job, and during my probation period, they substituted the old contract with this new contract (and back dated it), and I signed it because I had no choice (I was new here, and just been laid off from my previous job)
b) Normally I would have followed the proper procedure for the non compete. I can look for a job in either a direct competitor, or a bank. I have recently found out that my boss has been calling up the banks we do business with to not hire from our firm (or else they lose business from us). So that leaves me with very few options (just about 3-4 other firms that can directly hire me). So now that he has started it, I want to dish it back to him

c) I have completed almost 3.5 years in this job.
I have had a VERY good relation up till now in the company and with my boss. However, the company has been sitting on our increments and bonuses for some time, and I feel taken advantage of. The pay hikes are not going to be what they should be despite a VERY good 2011 for us, and despite me getting VERY good reviews and working my a$$ off. I think that they have a feeling that they will get more people from India or China if any of us decides to leave. I am from a VERY good school, but unfortunately people moving from India don't benchmark their salaries against the globally accepted standards for my job profile

Thanks for any response. 

/rant


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## ziokendo (Jan 7, 2012)

Has the non-compete been compensated with a premium ? Ie, have you a specific compensation to make up for the clause ?

Should be not enforceable otherwise, as far as the feedback I've got in this regard, but of course being a legal matter until this is not tried in a court, it's not possible to tell for sure.


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## rsinner (Feb 3, 2009)

ziokendo said:


> Has the non-compete been compensated with a premium ? Ie, have you a specific compensation to make up for the clause ?
> 
> Should be not enforceable otherwise, as far as the feedback I've got in this regard, but of course being a legal matter until this is not tried in a court, it's not possible to tell for sure.


There is no premium. If the company fires me, there is no non compete.
I guess it would be a legal matter, but just trying to understand if the MOL would take any stance on it or not. If it becomes messy, i can always threaten about the contract substitution which i think is supposed to be illegal.


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## ziokendo (Jan 7, 2012)

rsinner said:


> There is no premium. If the company fires me, there is no non compete.
> I guess it would be a legal matter, but just trying to understand if the MOL would take any stance on it or not. If it becomes messy, i can always threaten about the contract substitution which i think is supposed to be illegal.


If I were you I would be confident they are not going to waste their time on such a ground, especially if - as you say - they think would be so easy to replace you.

Just out of curiosity, would the industry in Dubai being such tied-up that they are going to know before 6 months that you have moved to a direct competitor ?

p.s. : extrema ratio, you could always have them to fire you, just do your strict working hours, show no motivation ecc. If you are already doing this and they keep you on board please forward the company name


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## md000 (Dec 16, 2008)

There is a clear explanation through Gulfnews:

Quote from Gulf News Article at gulfnews : Competition clause

“Where the worker assigned to a worker allows him to become acquainted with the employer’s clients or to become familiar with the secrets of his business, the employer may require him to refrain, after the termination of his contract, from competing with him or participating in any enterprise competing with his own.
“Such an agreement shall be valid only on condition that the worker is at least 21 years of age at the time of its conclusion that the agreement is limited, as regards the time, the place and the nature of the business, to the extent necessary to safeguard the employer’s lawful interest”.

-md000/Mike


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## rsinner (Feb 3, 2009)

Thanks guys. Now that I have had a chance to be a little less hysterical, the clause actually says that I cannot join a competitor for 6 months without the employer's written permission, such permisison not to be unreasonably withheld. so as long as I do not work on a competitive project for which the other company is also bidding, this should not be a problem (we do not have clients). 
In any case, I think the relationship with the employer is good enough to talk things over. My performance has been extremely good up till now, but in the last two months I have been so demotivated by the whole bonus issue that it shows in my work these days (and people are noticing). So I guess I need to not burn bridges while I look for the next job.


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