DUBAI: If you’re planning to switch jobs in the UAE, understanding what your contract says — especially about non-compete clauses — is crucial. While the UAE Labor Law gives employees the freedom to move between jobs, there are legal limits to consider when your previous employer claims you can’t work in the same industry elsewhere.
A Reader’s Question: Can I Take a New Job?
A fitness instructor with four years of experience recently asked whether a non-compete clause in their contract could stop them from accepting a job at another gym in a different emirate. The clause stated they couldn’t work in a similar field for 12 months after leaving the company — not just in the UAE, but globally. 
They gave proper notice before the contract expired and are now worried about potential legal trouble or a labor ban if they join another fitness company.
What the UAE Labour Law Says
Legal consultant Dr. Hassan Elhais from Awatif Mohammad Shoqi Advocates explained that non-compete clauses are allowed only in specific cases — particularly when the employee has access to sensitive business data or client relationships.
A non-compete clause must include provisions under Article 10 of the UAE Labor Law (Federal Decree-Law No. 33 of 2021), as further clarified by Cabinet Decision No. 1 of 2022.
- A reasonable time limit, not exceeding two years
- A specific geographic location
- A clear type of work that poses a legitimate business risk to the employer if competed against
If any of these elements are missing or overly broad — like banning work anywhere in the world — the clause is not enforceable under UAE law.
Why the Clause Might Not Hold Up
In the reader’s case, the clause failed on multiple fronts:
- It covers an unrealistic global scope
- It lacks a clearly defined job role
- The new job is in a different emirate with a different customer base
According to Article 909 of the UAE Civil Code, such broad clauses can be ruled invalid, as they unfairly restrict a person’s right to earn a living.
Elhais clarified: “This clause exceeds all reasonable limitations. It is not enforceable under the law because it restricts the employee far beyond what’s needed to protect the employer’s business.”
Can You Still Get a Labor Ban?
Not necessarily. Labor bans are not automatic in non-compete disputes. As per Article 12(2) of the Executive Regulation, if the employer wants to enforce the clause, they must go to court and prove actual harm caused by the employee’s new job. If the employer fails to do so, no penalties can be imposed.
Elhais adds, “There is no specific clause in the Labour Law that mandates a labor ban in such cases.”
Final Word
If you’re facing a similar situation, know your rights. The law aims to balance business protection with employee freedom. Unreasonably broad non-compete clauses — especially those trying to stop you from working across the UAE or globally — will not hold up legally.
