New Labour law

UAE Labour Law: Non-Compete Provisions

Under the changes enacted in the New Labour Law in effect from 2nd February 2022, specific changes have been made to provisions governing non-compete restrictive covenants that protect employers’ business once an employee leaves the company.

These protections are designed to offer employers some rights to prohibit harmful repercussions when an employee leaves the business such as breach of confidentiality and solicitation of business.

Specifically, this subject, the provisions of the Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations (the ‘Employment Law‘) and those of Cabinet Resolution No. 1 of 2022 Concerning the Executive Regulations of Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations (the ‘Cabinet Resolution No. 1 of 2022) are applicable.

These provisions provide greater clarity to this scenario and in this blog, we seek to answer the most common questions affecting employer and employee obligations.

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