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Non Compete Employment Contract Template for United Arab Emirates

A comprehensive employment agreement governed by UAE law that incorporates specific non-compete provisions to protect the employer's legitimate business interests. The document complies with UAE Federal Decree-Law No. 33 of 2021 and includes detailed terms regarding post-employment restrictions, geographical limitations, and time duration of non-compete obligations. It balances the employer's need to protect confidential information, customer relationships, and business interests with the employee's right to work, ensuring enforceability under UAE jurisdiction while maintaining compliance with local labor laws and regulations.

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What is a Non Compete Employment Contract?

The Non-Compete Employment Contract is designed for use in the United Arab Emirates when hiring employees in positions with access to sensitive business information, significant client relationships, or valuable intellectual property. This document combines standard employment terms with specific non-compete provisions that comply with UAE Federal Decree-Law No. 33 of 2021, particularly Article 10 regarding non-compete clauses. It is essential for protecting legitimate business interests while ensuring enforceability under UAE law, which requires non-compete provisions to be limited in duration, geographical scope, and business activities. The contract typically includes detailed terms about compensation, benefits, confidentiality obligations, and post-employment restrictions, making it particularly suitable for senior positions, technical roles, or client-facing positions where protection of business interests is crucial.

What sections should be included in a Non Compete Employment Contract?

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Context of the employment relationship and reason for the non-compete provisions

3. Definitions: Key terms used throughout the agreement, including Confidential Information, Restricted Business, Territory, etc.

4. Term of Employment: Duration of employment, probation period, and notice requirements

5. Role and Duties: Detailed description of the employee's position, responsibilities, and reporting structure

6. Compensation and Benefits: Salary, allowances, and other benefits as per UAE Labor Law requirements

7. Non-Compete Obligations: Specific restrictions during and post-employment, including duration and geographical scope

8. Confidentiality: Obligations regarding company confidential information and trade secrets

9. Intellectual Property: Ownership and rights to work product and innovations created during employment

10. Termination: Grounds for termination, notice periods, and consequences of termination

11. Post-Termination Obligations: Continuing obligations after employment ends, including return of company property

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

13. General Provisions: Standard contractual clauses including amendments, severability, and entire agreement

What sections are optional to include in a Non Compete Employment Contract?

1. Garden Leave: Provisions for putting employee on paid leave during notice period - include for senior positions

2. Commission Structure: Detailed commission calculations and terms - include for sales roles

3. International Travel: Terms for international assignments and travel - include if role requires travel

4. Training Obligations: Specific training requirements and cost recovery - include if significant training investment

5. Non-Solicitation: Additional restrictions on soliciting employees/clients - include for client-facing roles

6. Specific Performance: Rights to injunctive relief - include for highly sensitive positions

7. Language Provisions: Dual language provisions and controlling version - include if contract in multiple languages

What schedules should be included in a Non Compete Employment Contract?

1. Schedule 1 - Job Description: Detailed outline of role, responsibilities, and performance expectations

2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits

3. Schedule 3 - Restricted Territory: Map or detailed description of geographical restrictions

4. Schedule 4 - Restricted Business Activities: Specific activities and business areas covered by non-compete

5. Schedule 5 - Company Policies: Reference to applicable company policies and procedures

6. Appendix A - Confidential Information: Categories and examples of confidential information

7. Appendix B - Return of Company Property: Checklist of items to be returned upon termination

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Document Type

Employment Contract

Cost

Free to use

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