How long can a non-compete clause last in the UAE?

Last updated

Up to two years after the contract ends. Article 10 of Federal Decree-Law No. 33 of 2021 allows a non-compete only where the worker's job gives knowledge of clients or access to business secrets, and it must be limited in time, place and type of work to what protects legitimate business interests.

When the clause falls away

The clause is void if the employer ends the contract in breach of the law. An employer's claim for a breach of the clause cannot be heard after one year from discovering the breach. The Implementing Regulation sets further rules and exceptions by skill level.

Who it is relevant for in construction

Estimators, quantity surveyors, procurement leads and project managers handle tender prices, supplier terms and client relationships. Site labour rarely does, so a blanket non-compete across a workforce is unlikely to meet the Article 10 test.

How SupaJack Construct helps

Role-based permissions keep tender costing, supplier pricing and client data visible only to the staff who need it, which is the practical protection a non-compete is meant to back up.

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 contractor's chief estimator signs a one-year non-compete limited to tendering for fit-out work in Dubai. She resigns lawfully. The clause can apply for one year. If the contractor had dismissed her in breach of the law, the clause would be void.

Questions people ask

What is the maximum length?

Two years from the end of the contract.

Does it apply to all workers?

Only where the work gives knowledge of clients or business secrets.

How long does the employer have to sue?

One year from discovering the breach.

Sources

  1. Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationship (MOHRE, consolidated)
  2. Employment laws and regulations in the private sector (u.ae)

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