Non Compete Agreement For 1099 Employee Template for United Arab Emirates

This Non-Compete Agreement For 1099 Employee is essential for UAE businesses engaging independent contractors in roles involving access to sensitive business information, trade secrets, or valuable client relationships. The document is structured to comply with UAE Federal Decree-Law No. 33 of 2021 and related commercial regulations, ensuring enforceability while protecting legitimate business interests. It's particularly relevant in today's growing gig economy where companies increasingly rely on skilled independent contractors. The agreement includes specific provisions for duration (maximum 2 years under UAE law), geographical scope, and prohibited activities, while acknowledging the contractor's independent status. It's designed to protect the company's competitive advantage while remaining reasonable and enforceable under UAE jurisdiction.

1. Parties: Identification of the contracting parties - the company and the independent contractor, including full legal names and addresses

2. Background: Context of the agreement, nature of the business relationship, and legitimate business interests being protected

3. Definitions: Key terms including Confidential Information, Competitive Business, Restricted Territory, and Restricted Period

4. Scope of Non-Compete: Detailed description of prohibited competitive activities, specific industry sectors, and types of work covered

5. Duration and Territory: Specification of the time period (up to 2 years per UAE law) and geographical scope of the restrictions

6. Independent Contractor Status: Clear statement of 1099 status and independence of the contractor from the company

7. Consideration: Specific benefits or compensation provided in exchange for the non-compete obligations

8. Confidentiality Obligations: Protection of confidential information and trade secrets

9. Non-Solicitation: Restrictions on soliciting employees, customers, or suppliers

10. Acknowledgments: Contractor's acknowledgment of restrictions' reasonableness and receipt of consideration

11. Remedies: Available remedies in case of breach, including injunctive relief and damages

12. Governing Law and Jurisdiction: Specification of UAE law application and jurisdiction for disputes

13. Signature Block: Execution section with date and signatures of all parties