Non Compete Contract Template for United Arab Emirates

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Key Requirements PROMPT example:

Non Compete Contract

"I need a Non Compete Contract for a senior software developer in Dubai who will have access to our proprietary AI algorithms and client data, with restrictions covering the UAE and Saudi Arabia for 18 months after employment termination."

Document background
This Non-Compete Contract is essential for businesses operating in the UAE who need to protect their legitimate business interests, trade secrets, and client relationships from competitive activities by former employees. The document is structured in accordance with UAE Federal Decree-Law No. 33 of 2021 and related employment regulations, ensuring that restrictions are reasonable and enforceable under UAE law. It should be used when hiring employees who will have access to sensitive information, important client relationships, or trade secrets. The agreement typically includes specific provisions about geographical limitations (usually within the UAE or specific emirates), duration of restrictions (typically not exceeding two years), and detailed scope of prohibited activities. It's particularly important to note that under UAE law, the restrictions must be limited in time, place, and type of work, and the employee must receive compensation for the non-compete period.
Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names and addresses

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

3. Definitions: Key terms used in the agreement, including 'Confidential Information', 'Competing Business', 'Restricted Territory', etc.

4. Scope of Restrictions: Detailed description of prohibited activities, including specific industry sectors and roles

5. Duration: Time period for which the non-compete obligations will apply (must be reasonable under UAE law, typically not exceeding 2 years)

6. Geographic Limitations: Specific territories where the restrictions apply, ensuring compliance with UAE reasonable geographical limitation requirements

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

8. Employee Acknowledgments: Employee's confirmation of the reasonableness of restrictions and receipt of consideration

9. Remedies: Consequences of breach, including injunctive relief and damages

10. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant courts for dispute resolution

Optional Sections

1. Garden Leave: Provisions for paid leave during notice period, used when immediate removal from business activities is desired

2. Training Costs Recovery: Include when the employer has invested in significant training and wishes to recover costs if the employee leaves

3. Client Non-Solicitation: Additional restrictions specifically regarding client relationships, used for client-facing roles

4. Employee Non-Solicitation: Restrictions on recruiting other employees, important for management-level positions

5. Severability: Provisions for maintaining validity of remaining clauses if some are found unenforceable, particularly important in complex agreements

6. Post-Termination Notification Requirements: Requirements for the employee to inform new employers of restrictions, used in sensitive industries

Suggested Schedules

1. Schedule 1: Restricted Territory: Detailed map or list of geographical areas where restrictions apply

2. Schedule 2: Competing Businesses: Comprehensive list of competitors and competing business activities

3. Schedule 3: Consideration Details: Breakdown of any financial compensation or benefits provided

4. Schedule 4: Confidential Information: Detailed list of types of confidential information covered by the agreement

5. Appendix A: Employee's Role and Access: Description of employee's position and access to sensitive information justifying restrictions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Relevant Industries

Technology

Financial Services

Professional Services

Healthcare

Manufacturing

Telecommunications

Consulting

Real Estate

Energy

Retail

Pharmaceuticals

Media and Entertainment

Education

Aviation

Relevant Teams

Executive Leadership

Sales

Research and Development

Information Technology

Product Development

Business Development

Client Services

Operations

Finance

Strategy

Marketing

Human Resources

Legal

Engineering

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Sales Director

Senior Software Engineer

Account Manager

Business Development Manager

Research Scientist

Product Manager

Financial Controller

Operations Director

Senior Consultant

Technical Lead

Regional Manager

Head of Strategy

Senior Account Executive

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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