# Non-compete clause in employment contract



## Jay21 (Jul 7, 2014)

Hello,
I was wondering if anyone here has come across a so-called 'Non-competition agreement' which my prospective new employer has informed that I will have to sign. My background is medical and the prospective employer is a private hospital in Dubai. As per this clause within the contract, if you resign, complete your contract, or if you are terminated, you cannot practice in any of the following Emirates – Dubai, Abu Dhabi and Sharjah for a period of 2 years. You can practice in any other of the remaining Emirates and in any other country. Should you practice in any of the above stated Emirates, you can buy out the non-compete clause by paying an amount of 1.5 million Dhs or approx 408,000 USD! 
This seems ridiculous and simply not feasible as I would not like to be bonded into a contract in case my, my daughters, or other circumstances change and i have the need to leave that employment. 
I understand an employer wanting payment for an initial outlay such as visa fees and relocation expenses, but no one i know has 408,000 USD to pay back an employer! 
Has anyone here come across such a clause, and can you tell me whether this allowable/enforceable under employment law in the UAE?
Thanks in advance!


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## Stevesolar (Dec 21, 2012)

Hi jay,
There was a good discussion about non-compete clauses a while back - that included a link to a newspaper article about the same subject.
Link here:- 
http://www.expatforum.com/expats/dubai-expat-forum-expats-living-dubai/138774-any-doctor-forum.html
Cheers
Steve


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## A.Abbass (Jun 28, 2014)

I am a doctor, just signed for a Dubai hospital and there is no such clause in my contract.


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## mehranR (Jul 27, 2013)

I read somewhere that the Dubai law doesn't allow the non-compete clause, but the employer could still sue you for that money. Which is not going to be good.
I personally would never sign such a non-compete clause as yours unless the employers are willing to compensate me very very very well. 
Really do check your alternative plans. I moved here last year and I still live in a state of shock. Things are completely different from back home,
Cost of living is extremely high, customer service is almost non- existent. Quality of life in America could be a lot better than here. It's a tax free country, but you will end up paying so much on fees and at the end of the day your income will still get reported to the US gov. 
Good luck


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## BedouGirl (Sep 15, 2011)

mehranR said:


> I read somewhere that the Dubai law doesn't allow the non-compete clause, but the employer could still sue you for that money. Which is not going to be good. I personally would never sign such a non-compete clause as yours unless the employers are willing to compensate me very very very well. Really do check your alternative plans. I moved here last year and I still live in a state of shock. Things are completely different from back home, Cost of living is extremely high, customer service is almost non- existent. Quality of life in America could be a lot better than here. It's a tax free country, but you will end up paying so much on fees and at the end of the day your income will still get reported to the US gov. Good luck


I also think the non-compete clause is not legal but if you sign something to say you agree to their terms, they probably would have a case because, technically, you agreed to it.


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## Jay21 (Jul 7, 2014)

Thanks all, thats given me a lot to think about. 

Steve, if I remember right you had mentioned this to me earlier but I've just had a proposed contract and so only now realised the implications of this.

From what the others have said as well this sounds like a potentially sticky situation and to be honest I prefer to keep my freedom to go anywhere I please, and certainly my qualifications and experience should allow me to choose where I work rather than the other way round.

Abbass, thanks - its seems this clause is specific to this particular hospital, which is strange. 

I think that's helped me make my mind up! thanks everyone.


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## Stevesolar (Dec 21, 2012)

Jay21 said:


> Thanks all, thats given me a lot to think about.
> 
> Steve, if I remember right you had mentioned this to me earlier but I've just had a proposed contract and so only now realised the implications of this.
> 
> ...


Hi jay,
There are plenty of hospitals with excellent working conditions, salary packages, accomodation and reputation - that don't have anti-compete clauses.
You simply need to find a job in one of these establishments - rather than taking one at a place that will hinder your exit, if you ever want to leave and practice elsewhere in the UAE.
In general, government hospitals have better pay (30,000 AED per month more), shorter working hours (40 vs 48 per week), longer holidays (also calculated as working days, not calendar days - this makes a huge difference!) and being government - far longer breaks for public holidays (again, this makes a huge difference).
They also have far simpler and fairer contracts!
At a consultant level - government is also more similar to working in the NHS.
The only two downsides that i can forsee is that government hospitals do not contribute towards school fees for your daughter (this would only normally be around 30,000 AED per year - so no big deal, given the salary difference) and there is a risk that sometime in the future your job will be Emiratised by employing a local (again, no big deal - because nobody intends to stay here forever and you could always then go and work in the private sector).
The recruitment process also takes a little longer as you also need security clearance in addition to your health authority licence - but the wait would normally be worth it!
Hope the above helps!
Cheers
Steve


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