Legal Question in Employment Law in United Arab Emirates

i have a valid residence permit and labour card for UAE. My contract with the company states that I cannot join any company competing with them or in the same trade in the Middle East for 1 year after I leave the current job. Is such a contract legal and tenable ... I do not have much choice because I have already signed the contract. Also, what happens in the event the company becomes defunct or closes. Is the contract still valid.


Asked on 8/16/10, 1:46 am

1 Answer from Attorneys
Shaji Natarajan Salam Advocates & Legal Consultants

From the facts mentioned, it is understood that your Employer had incorporated the "Non-Competitive" clause in your Contract. You have not mentioned your nature of Employment and the nature of Business of your Company.

In my view, there is no reason for you to be so perturbed. The said Contract will in normal circumstances, be legal and tenable. In the event of the Company becoming defunct or closed, the said terms of the Contract gets extinct.

You may understand that in the event of you resigning from the present Company and joining any other Company, it is for your present Company to file a Case and convince the Court that the new Company is their direct Competitors and that you have weaned away their business and caused direct loss to them, otherwise their case will get dismissed.

For any further clarification, you may mail to [email protected] or call on 050 2104389.

Best Regards,

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Answered on 8/21/10, 2:42 am


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