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Non-Compete Agreement
What is a non-compete agreement?
A non-compete agreement is an agreement between the parties which prohibits one party from working with the competitor. This agreement is usually performed between the parties having employer-employee relationship. Moreover, the intention behind this agreement is to restrain the ex-employee from working with different organisation of same field. Thus, it depends upon the employer whether he includes non-compete clause in an employee agreement or ask employee to sign supplementary non-compete agreement.
What is the difference between non-solicitation and non-compete agreements?
Our Employment Lawyers in Dubai states that: There is no such vast difference between non-solicitation or non-compete agreements both mean one and the same thing. The object behind both the agreement is to restrain ex-employee from performing functions with different organization working in a same field, so that the confidentiality of the previous may not be curtailed. Therefore, the nature of non-solicitation agreement or clause is little different from non-compete agreement to understand the same diagram is mentioned below:
What is the legal framework of UAE regarding non-compete agreements?
Our Employment Lawyers in Dubai suggests that: Non-compete agreement and clause are recognised by the Labour law of UAE. Earlier it was regulated by Article 127 of Federal Law No. 8 of 1980, but recently this law has been totally replaced by Federal Decree Law No.33 of 2021 known as ‘UAE Employment Law’. Furthermore, Article 10 of the new Employment Law deals with non-compete clause and agreements and provides an elaborative procedure for its application.
Likewise various conditions have been laid down for the application of non-complete law such as there must be a specific duration for the operation of non-compete law, geographical limits must be there and most importantly the nature of work must be specified from which the employee shall be restrained. Moreover, certain exceptions to the non-compete agreement has also been provided by the new UAE Employment Law. Thus, it is important to have best and reliable legal advice from a Lawyers specializing in Employment Law.
What to do in situation where there is violation of non-compete agreements?
Our Lawyer Specializing in Employment Law suggests that: Violating non-compete agreements may lead you to suffer from heavy loss as the employer has the right to claim adequate compensation against the loss incurred to him due to violation of non-compete agreement by an ex-employee. The law provides right to an employer who has suffered loss to claim his compensation against the violator (ex-employee) before the concern Court of Law. As we all know litigation in courts are costly and time consuming.
Thereby NA Lawyers Firm advice its client indulged in business and commercial actives to add penalty clause in the non-compete agreement, which gives benefit to the employer to prove his claim because burden of proof shifts upon ex-employee to prove the fact that no loss has been incurred by his act. NA Lawyers Firm has a highly qualified team of employment lawyers in Dubai which have extensive experience in drafting and contesting matters relating to non-compete agreements.
Our law firm works in a highly proficient manner to secure the interest of our clients. Law is a double-edged weapon and can easily be used from both the sides. Thus, it depends upon you to choose best legal services in hard times so that your interest can be protected. NA Lawyers Firm is always committed to provide best advice and results to our clients. Therefore, in case if you need any suggestion or help in relation the matters related to non-compete agreements you can contact us freely. Our team is fully committed to perform their duty and in delivering out the positive results.
