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According to below mentioned clause ,Am I allowed to join other IT company in the practice Computer Software House or not

"To refrain from directly or indirectly competing with the Employer or working for another competing organisation in the practice of Computer Software House within UAE for a period of 24 months (not exceeding 24 calendar months) following the expiration or termination of the Employment Contract."

Nate Eldredge
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2 Answers2

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Anti-competition clauses are legal under UAE law, see here and here. Article 127 of UAE Labour Law specifically allows non-compete clauses related to access to clients of business secrets, provided that

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.

which means there is no fixed upper duration of the restriction. This article analyzes some of the nuances of UAE law on this point, and they observe

Concerning the timely limitation, a reasonable duration for a non-competition clause normally ranges between 3 months to 2 years from the date of termination of the employment contract. In the past, it was often held that the (previous) automatic employment ban of 6 months after termination have a similar effect as a non-competition clause i.e. preventing the employee to enter the country during this time; hence, it was concluded that a specific non-competition clauses included in the employment agreement should only be limited to 6 months as well.

Under a ruling by the Dubai Court of Cassation, Petition NO. 58/2008 (as summarized in the preceding analysis), violating a non-compete clause with a duration of 2 years can be enforced, but the onus is on the employer (plaintiff) to prove that they have suffered the alleged damage.

user6726
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No

It means what it says, however, restraint of trade clauses are often subject to a test of reasonableness given that they affect a person's ability to make a living, I am not familiar at all with UAE law to know if this is applicable. I can say that 24 months across all industries would be unenforceable in Australia.

Dale M
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