Understanding the Digital Signature Lawfulness for Non-Compete Agreement in UAE

How to eSign a document: digital signature lawfulness for Non-Compete Agreement in UAE

non-compete Clause some of you might have seen this clause in your labor employment contract but do you know what this Clause signifies the employer uses this Clause to prevent its employee from joining a competitor company after the termination of the contract in UAE the non-compete clauses are enforceable as long as it is not unreasonable that is it should be limited in the scope of time place and scope of work so the first aspect is the location now the employer can only restrict the Clause to a specified location like for example say Dubai it cannot restrict a employee from entering into a competitor business or joining a competitor company uh in the entire of U that won't be allowed let us come to the time aspect now the duration of this Clause it should not exit 2 years the third aspect is legitimate interest now the employer has to show that their business has suffered some actual damage they have to show some evidence this Clause it cannot be enforced merely on the basis of assumption of some harm there has to be some actual harm that is caused to the employer you should also know that this Clause should strike a balance between the leg legitimate interest of an employer and the rights of the employee moreover the employer can only claim damages for the loss suffered by him after he shows some real evidence and he cannot restrain the employee from joining a competitor company however the employer has only one year to file a case for the violation of its employee hope after watching this video you are well informed about the non-compete Clause now whether you are an employer or an employee who is facing this kind of troubles then you can reach out to us on the number provided below