Standard Non Compete Agreement for United Arab Emirates

Standard Non Compete Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that restricts an employee from engaging in competitive activities after their employment ends. This document aligns with UAE Labor Law (Federal Decree-Law No. 33 of 2021), particularly Article 10, which sets specific requirements for non-compete provisions. The agreement details the scope, duration, and geographical limitations of the restrictions, while ensuring compliance with UAE legal requirements including reasonable limitations on time (maximum 2 years) and geography. It includes provisions for protecting confidential information, trade secrets, and legitimate business interests, with specific consideration for UAE commercial and civil code requirements.

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What is a Standard Non Compete Agreement?

The Standard Non-Compete Agreement is a crucial document for businesses operating in the UAE who wish to protect their legitimate business interests, confidential information, and competitive advantage. This agreement becomes particularly important in the context of UAE's dynamic business environment and the mobility of skilled workforce across the region. The document must comply with UAE Labor Law (Federal Decree-Law No. 33 of 2021), which requires non-compete clauses to be limited in duration, geographical scope, and nature of work. It should be used when hiring employees who will have access to sensitive information, key client relationships, or specialized knowledge that could potentially harm the business if used by competitors. The agreement typically includes specific restrictions on post-employment activities, protection of confidential information, and remedies for breach, all structured within the framework of UAE legal requirements.

What sections should be included in a Standard Non Compete Agreement?

1. Parties: Identification of the employer and employee, including full legal names, addresses, and any relevant registration numbers

2. Background: Context of the agreement, employment relationship, and legitimate business interests being protected

3. Definitions: Key terms used throughout the agreement, including 'Confidential Information', 'Competitive Activity', 'Restricted Period', and 'Restricted Territory'

4. Scope of Restrictions: Detailed description of prohibited activities, including specific competitor types, roles, and activities

5. Duration of Restrictions: Time period for the non-compete obligations (maximum 2 years under UAE law)

6. Geographic Limitations: Specific geographical areas where restrictions apply

7. Confidentiality Obligations: Requirements regarding handling and protection of confidential information

8. Consideration: Compensation or benefits provided in exchange for the non-compete obligations

9. Acknowledgments: Employee's confirmation of understanding and agreement to terms

10. Remedies: Legal remedies available in case of breach, including injunctive relief and damages

11. Governing Law and Jurisdiction: Specification of UAE law application and relevant courts

What sections are optional to include in a Standard Non Compete Agreement?

1. Garden Leave: Optional provision for paid leave during notice period - recommended for senior executives

2. Non-Solicitation: Additional restrictions on soliciting customers or employees - recommended for client-facing roles

3. Training Costs Recovery: Provisions for recovering specialized training costs - useful when significant training investment is involved

4. Industry-Specific Restrictions: Additional restrictions specific to particular industries - recommended for specialized sectors

5. International Scope: Extended provisions for international operations - necessary for multinational companies

6. Severability: Provisions for partial enforcement if some terms are found invalid - recommended for complex restrictions

What schedules should be included in a Standard Non Compete Agreement?

1. Schedule 1 - Restricted Activities: Detailed list of specific activities, businesses, and roles that are restricted

2. Schedule 2 - Restricted Territory: Detailed maps or lists of geographical areas where restrictions apply

3. Schedule 3 - Competitor List: List of specific competitors or competitor types covered by the agreement

4. Schedule 4 - Consideration Details: Breakdown of any financial compensation or benefits provided

5. Appendix A - Confidential Information: Detailed categories of confidential information covered by the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Relevant Industries

Technology

Financial Services

Professional Services

Healthcare

Telecommunications

Manufacturing

Retail

Energy

Construction

Consulting

Pharmaceuticals

Media and Entertainment

Real Estate

Education

Logistics

Relevant Teams

Human Resources

Legal

Sales

Research & Development

Executive Leadership

Product Development

Client Services

Operations

Finance

Marketing

Business Development

Information Technology

Strategy

Innovation

Customer Success

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Sales Director

Senior Software Engineer

Product Manager

Business Development Manager

Research Scientist

Financial Controller

Marketing Director

Operations Manager

Senior Consultant

Account Manager

Technical Lead

Head of Innovation

Regional Manager

Client Relations Manager

Senior Analyst

Department Head

Project Manager

Executive Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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