« Back to Glossary IndexNon-Compete Clause
A non-compete clause is a contractual provision that restricts an employee or business partner from engaging in competitive activities within a specific industry, location, or timeframe after leaving a company. In the UAE, Federal Decree-Law No. 33 of 2021 on Labor Relations allows employers to enforce non-compete clauses, provided they are reasonable in duration, geographic scope, and nature of work. Courts in the UAE generally uphold non-compete agreements if they are proportionate and protect legitimate business interests, but excessively broad restrictions may be deemed unenforceable. In free zones such as DIFC and ADGM, employment laws also regulate non-compete provisions, ensuring fair business practices.
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