Can a worker buy out a non-compete clause in the UAE?
Yes. Article 12 of Cabinet Resolution No. 1 of 2022 exempts the worker if the worker or the new employer pays the previous employer compensation of up to three months of the last contract wage, with the previous employer's written consent. The clause also does not apply if the contract ends during probation.
On this page
Other limits on the clause
The clause must set its geographic scope, may not exceed two years from the end of the contract, and must protect against significant harm to the employer's legitimate interests. It does not apply where the termination is due to the employer or its breach. The parties can agree in writing not to apply it. In a dispute, the employer must prove the damage.
What this means when hiring from a competitor
A contractor hiring an estimator or project manager from a competitor can negotiate a payment of up to three months' wage to release the clause, if the competitor agrees in writing.
How SupaJack Construct helps
Construction users can be limited to the projects they are assigned to, so tender pricing and supplier terms on other projects are not visible to them. That reduces the business information a departing employee could take.
Related tools and guides
See the UAE labour law guide for contractors, the final settlement calculator, the gratuity calculator, the annual leave calculator, the unpaid leave deduction calculator, payroll and WPS in SupaJack Construct, time and attendance and the meaning of basic salary.
Worked example
A quantity surveyor earning AED 18,000 a month leaves for a competitor that wants him to start immediately. The new employer pays the former employer AED 40,000 with its written consent. That is within three months' wage, AED 54,000, so the clause no longer applies.
Questions people ask
What is the maximum buyout?
Three months of the wage in the last contract.
Does the old employer have to agree?
Yes, in writing.
Who proves damage in a dispute?
The employer.