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When can Dubai employers enforce non-compete clauses? What UAE law says
UAE law places limits on non-compete clauses, requiring employers to define key aspects of the restriction, like scope and duration
- PUBLISHED: Sun 27 Sept 2026, 9:28 AM UPDATED: Sun 27 Sept 2026, 11:31 AM
Question: How enforceable is a non-compete clause in a mainland Dubai company? I am planning to take up an offer with another company in the same industry. In what circumstances can my current employer enforce the clause or prevent me from joining the new company?
Answer: Pursuant to your queries raised, as you are employed by a mainland Dubai company, the provisions of the UAE employment law and the subsequent cabinet resolution are applicable.
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In the UAE, an employer may impose a non-compete restriction on an employee who has access to its customers or confidential business information. However, it must specify the relevant geographical area, duration and type of work. In any event, the non-compete period cannot exceed two years after the employment ends.
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This is in accordance with the Article 10(1) of the Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations (the ‘Employment Law’) which states:
"Where the employee performs a work which gives him access to employer's customers or business secrets, the Employer may make a provision in the employment contract that the employee shall not compete with or be engaged in any business which competes with him in the same sector after the expiry of the contract. Such clause shall specify the place, time, and type of work to the extent necessary to protect the legitimate business interests, and the non-competition period shall not exceed two years after the expiration of the contract.”
Further, if an employer unlawfully terminates an employee’s employment, the non-compete restriction will no longer apply. This is in accordance with the Article 10 (2) of the Employment Law, “This requirement shall be nullified if the employer terminates the employment contract in violation of the provisions hereof.”
If a former employee violates the provisions of the non-competition its former employer must file its claim against such former employee not later than one year from the date on which the violation was discovered.
This is in accordance with the Article 10 (3) of the Employment Law, “The claim filed by the employer for the worker’s violation of the provisions of this Article shall not be heard if one year has passed from the date of discovering the violation.”
However, a non-competition clause may not be applicable to an employee if he or she agrees with an employer in writing that non-competition clause in an employment contract does not apply on termination of an employment contract.
This is in accordance with Article 12 (4) of the Cabinet Resolution No.1 of 2022 on the Implementation of Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relations (the ‘Cabinet Resolution No. 1 of 2022’), which states, “If may be agreed in writing not to apply the non-competition clause after the termination of the employment contract.”
Further, Article 12(5) of the Cabinet Resolution No.1 of 2022 states that an employee shall be exempted from the non-compete clause under the following conditions:
“1. If the employee or the new employer pays compensation not exceeding three (3) months of the employee's wage agreed upon in the last contract to the former employer, and the former employer's written consent thereto is required
2. If the contract is terminated during the probationary period.
3. Any professional categories according to the needs of the employment market in the UAE, as determined by decision of the Ministry under the employment classification approved by the Cabinet.”
If you join a competitor of your employer, the burden is on your current employer to prove it in the courts which has jurisdiction stating that you are employed by a competitor and you have caused financial loss or damage to your current employer.
This is in accordance with Article 12(2) of the Cabinet Resolution No.1 of 2022, which states, “If a dispute arises over the non-competition clause and it is not settled amicably, the matter shall be referred to the judiciary and the burden of proving the alleged damage shall lie with the employer.”
Based on the aforementioned provisions of law, if you join the competitor of your current employer and if the current employer is able to prove in the court which has jurisdiction in the UAE that you have been employed with the competitor which has caused damage to your current employer, then you may have to pay compensation to your current employer as decided by the court.
Applicable law:
1. Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations.
2. Cabinet Resolution No.1 of 2022 on the Implementation of Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relations.
Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.
Disclaimer: The information provided above is intended for general guidance and does not constitute legal advice. It is recommended to seek formal legal counsel.