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Moheb Hassan
Lawyer
الأسئلة المجابة 63652 | نسبة الرضا 98.2%
Lawyer
Is anti competition law applicable in Fujairah...
Is anti competition law applicable in Fujairah free zone
Lawyer's Assistant: Where are you located? It matters because laws vary by location
Fujairah free zone
Lawyer's Assistant: Has anything been filed or reported?
Not yet
Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?
No
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إجابة الخبير: Moheb Hassan
Moheb Hassan
Lawyer
الأسئلة المجابة 63652 | نسبة الرضا 98.2%
We would like to inform you that if your inquiry is related to the condition of non-competition stipulated in the employment contract, here are the following information:
The UAE labor law has stipulated that the worker does not compete the employer and grant the right to the employer to set a condition that obliges the worker not to work in any competing company.
The duration of the enforcement of this condition shall be reasonable and appropriate in the appropriate place in consistency with preserving the rights of the employer. Also, this condition is applicable in the free zones.
Here is also the text of the UAE Labor Law related to your inquiry:
Article 127:
Where the work assigned to a worker allows him to become acquainted with the employer's clients or to have access to his business secrets, the employer may require him to undertake not to compete with him or participate in any enterprise competing with his own, after the termination of his contract. For such an undertaking to be valid, the worker must be at least 21 Gregorian years of age at the time the agreement is concluded, and the agreement must be confined, in terms of time, place and the nature of the business, to the extent necessary to safeguard the employer's legitimate interests.
The UAE labor law has stipulated that the worker does not compete the employer and grant the right to the employer to set a condition that obliges the worker not to work in any competing company.
The duration of the enforcement of this condition shall be reasonable and appropriate in the appropriate place in consistency with preserving the rights of the employer. Also, this condition is applicable in the free zones.
Here is also the text of the UAE Labor Law related to your inquiry:
Article 127:
Where the work assigned to a worker allows him to become acquainted with the employer's clients or to have access to his business secrets, the employer may require him to undertake not to compete with him or participate in any enterprise competing with his own, after the termination of his contract. For such an undertaking to be valid, the worker must be at least 21 Gregorian years of age at the time the agreement is concluded, and the agreement must be confined, in terms of time, place and the nature of the business, to the extent necessary to safeguard the employer's legitimate interests.
الرد من العميل
Thank you sir. Is 2 years restriction by employer is reasonable ?
إجابة الخبير: Moheb Hassan
Moheb Hassan
Lawyer
الأسئلة المجابة 63652 | نسبة الرضا 98.2%
Indeed, it is a reasonable time
الرد من العميل
If I have joined a company which produces cement and have plan to start cement products like cement mortar which compete my old company products and new company products quantity and value is not competing my old company and still the product not yet launched in market ,is it competitor company?
إجابة الخبير: Moheb Hassan
Moheb Hassan
Lawyer
الأسئلة المجابة 63652 | نسبة الرضا 98.2%
The old company is a competitor to the new one and vice versa. As long as the activities and products are alike and the kind of the employee's job is the same, it is a competitor. Also, if the financial capacity of the two companies are not close to each other, it is not a term or a condition for competition.
The ONLY thing that matters is the products of the two companies as the main standard of competition
The ONLY thing that matters is the products of the two companies as the main standard of competition
الرد من العميل
Thank you Sir, is there any chance for employee to clarify their position against employer's sue. Court is listening one side or both?
الرد من العميل
Secondly whether the court or Labour ministry will verify the employer claim , verify new employer business and new position of employee? Also status of lost to former employer with proofs?
إجابة الخبير: Moheb Hassan
Moheb Hassan
Lawyer
الأسئلة المجابة 63652 | نسبة الرضا 98.2%
Indeed, the court will verify all of what you have mentioned with collecting all the evidence supporting the validity of each party's application.
الرد من العميل
Thank you for all dear sir
الرد من العميل
Dear Sir, I have completed 5 years 8 months with my previous company ,can they sue me on anti competition law? Some people say its only for begening 2 years.
إجابة الخبير: Moheb Hassan
Moheb Hassan
Lawyer
الأسئلة المجابة 63652 | نسبة الرضا 98.2%
We would like to inform you that the condition of non-competition is adhered to by the previous employer after the end of the previous employment contract. Also, the period during which the employer adheres to protection and non-competition begins after the date of the end of the previous employment contract. That period is subject to the discretion power of the labor court judge.
الرد من العميل
Dear Sir, Can you make it easy for me to understand , will be grateful.
إجابة الخبير: Moheb Hassan
Moheb Hassan
Lawyer
الأسئلة المجابة 63652 | نسبة الرضا 98.2%
If you have already completed five years and Eight months at work at the former company, then the former employer has the right to claim a legal case against you for not competing with his company
الرد من العميل
Dear Sir, I have joined a company which is supplier of my previous company. Now my previous company is pressuring my new company to oust me from job otherwise they will stop purchasing from them? What legally steps I have to take if my new company accept pressure and ousting me from my job?
إجابة الخبير: Moheb Hassan
Moheb Hassan
Lawyer
الأسئلة المجابة 63652 | نسبة الرضا 98.2%
The UAE Labor Law has given the employer the right to terminate the work contract without notifying the employee or paying remuneration during the probation period.
Knowing that, the probation period must not be more than six months.
If the first six months pass, and the new employer agrees to respond to the pressure of the former employer, and he / she ends the work contract with you. Then, you can file a complaint against the employer.
The complaint can be filed at the Ministry of Resources for Humanity and Emiratisation in order to obtain compensation for the arbitrary dismissal, which is of a maximum salary of three months.
The UAE Labor Law, related to your inquiry:
Article 123
1. Where a worker is arbitrarily dismissed, the competent court may order the employer to pay him a compensation, to be assessed by the court with due regard to the nature of the work, the extent of damage sustained by the worker and his period of service, and after investigating the work circumstances, provided that such compensation shall in no case exceed the worker's wage for three months, calculated on the basis of his last wage.
2. The provisions of the preceding paragraph shall not prejudice the worker's right to the gratuity he is entitled to and the compensation in lieu of notice provided for in this law.
Knowing that, the probation period must not be more than six months.
If the first six months pass, and the new employer agrees to respond to the pressure of the former employer, and he / she ends the work contract with you. Then, you can file a complaint against the employer.
The complaint can be filed at the Ministry of Resources for Humanity and Emiratisation in order to obtain compensation for the arbitrary dismissal, which is of a maximum salary of three months.
The UAE Labor Law, related to your inquiry:
Article 123
1. Where a worker is arbitrarily dismissed, the competent court may order the employer to pay him a compensation, to be assessed by the court with due regard to the nature of the work, the extent of damage sustained by the worker and his period of service, and after investigating the work circumstances, provided that such compensation shall in no case exceed the worker's wage for three months, calculated on the basis of his last wage.
2. The provisions of the preceding paragraph shall not prejudice the worker's right to the gratuity he is entitled to and the compensation in lieu of notice provided for in this law.
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Moheb Hassan
Lawyer
الأسئلة المجابة 63652 | نسبة الرضا 98.2%
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