The Employee Restrictive Covenant Agreement is a crucial document used in the UAE to protect an employer's legitimate business interests after an employee's departure. This agreement becomes particularly important when employees have access to sensitive information, key client relationships, or specialized knowledge that could be harmful to the business if used by competitors. The document must comply with UAE Federal Law No. 33 of 2021 and related legislation, which sets specific parameters for restrictive covenants, including maximum duration periods and requirements for reasonable geographic scope. The agreement typically includes provisions for non-competition, non-solicitation, and confidentiality obligations, tailored to the specific role and industry while ensuring enforceability under UAE law. It's essential for businesses operating in the UAE's competitive market environment, particularly in knowledge-intensive sectors or when dealing with senior employees who have significant access to business-critical information or relationships.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Context of the agreement, including the employee's role and rationale for the restrictive covenants
3. Definitions: Key terms used throughout the agreement, including 'Confidential Information', 'Restricted Business', 'Restricted Period', and 'Restricted Territory'
4. Confidentiality Obligations: Detailed provisions regarding the protection and non-disclosure of confidential information during and after employment
5. Non-Competition: Restrictions on working with competitors, including geographic and temporal scope as per UAE Labor Law
6. Non-Solicitation of Customers: Restrictions on approaching or dealing with company customers or prospective customers
7. Non-Solicitation of Employees: Restrictions on recruiting or attempting to recruit company employees
8. Intellectual Property Rights: Provisions regarding ownership and protection of IP created during employment
9. Duration and Geographic Scope: Specific timeframes and geographical limitations for the restrictions, ensuring compliance with UAE law
10. Acknowledgments: Employee's confirmation of the reasonableness of restrictions and receipt of consideration
11. Remedies: Legal remedies available to the employer in case of breach, including injunctive relief
12. Governing Law and Jurisdiction: Specification of UAE law as governing law and UAE courts' jurisdiction
1. Garden Leave: Optional provisions for placing employee on paid leave during notice period - relevant for senior executives
2. Post-Termination Assistance: Requirements for employee to assist with handover and transition - useful for key personnel
3. Training Costs Reimbursement: Provisions for recovering training costs if employee leaves within specified period - relevant where significant training investment made
4. Moral Rights Waiver: Specific waiver of moral rights in intellectual property - relevant for creative/technical roles
5. Special Considerations for Free Zones: Additional provisions required if employer operates in DIFC or ADGM
6. Assignment and Transfer: Rights to assign the agreement - relevant for companies anticipating corporate restructuring
1. Schedule 1 - Restricted Territory: Detailed map or list of geographical areas covered by restrictions
2. Schedule 2 - Restricted Customers: List of specific customers or customer categories covered by non-solicitation provisions
3. Schedule 3 - Confidential Information: Detailed categorization of confidential information and trade secrets
4. Appendix A - Employee's Position and Duties: Detailed description of employee's role and access to confidential information
5. Appendix B - Consideration: Details of any specific consideration provided for the restrictive covenants
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