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 an employer-employee relationship. Moreover, the intention behind this agreement is to restrain the ex-employee from working with different organisations in 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 state 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 organisations working in the same field, so that the confidentiality of the previous may not be curtailed. Therefore, the nature of a non-solicitation agreement or clause is little different from a 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 suggest that:

Non-compete agreements and clauses are recognized by the Labour law of the 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 clauses 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 have also been provided by the new UAE Employment Law.

Thus, it is important to have the best and most reliable legal advice from Lawyers specializing in Employment Law.

What to do in a situation where there is a 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 the non-compete agreement by an ex-employee. The law provides the right to an employer who has suffered a loss to claim his compensation against the violator (ex-employee) before the concerned Court of Law.

As we all know litigation in courts is costly and time-consuming. Thereby Nour Attorneys Law Firm advice its client indulged in business and commercial activities to add a penalty clause in the non-compete agreement, which gives benefit the employer to prove his claim because the burden of proof shifts upon the ex-employee to prove the fact that no loss has been incurred by his act.

EuroMea Legal Services has a highly qualified team of lawyers and legal consultants which have extensive experience in drafting Shareholders Agreements. Our law firm works in a highly proficient manner in order to secure the interest of our clients.

Law is a double-edged weapon and can easily be used from both sides. Thus, it depends upon you to choose the best legal services in hard times so that your interest can be protected.

EuroMea Legal Services is always committed to providing the best advice and results to our clients. Therefore, in case you need any suggestions or help in relation to the matters related to Shareholders Agreements you can contact us freely. Our team is fully committed in order to perform their duty and in delivering the best results.