Non Compete In Severance Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Non Compete In Severance Agreement

"I need a Non Compete In Severance Agreement for our Dubai-based Chief Technology Officer who will be leaving on March 1, 2025, with access to sensitive technical information and client relationships across the GCC region."

Document background
The Non-Compete in Severance Agreement is a critical document used in the UAE when terminating employment relationships where protection of business interests is essential. This agreement, governed by UAE Labor Law (Federal Decree-Law No. 33 of 2021), serves dual purposes: documenting the terms of employment termination and establishing post-employment restrictions. It is typically used for employees in sensitive positions or those with access to confidential information, combining severance benefits with legally enforceable non-compete provisions. The document must carefully balance the employer's need to protect legitimate business interests with the employee's right to work, ensuring compliance with UAE legal requirements, including the maximum 2-year restriction period and reasonable geographical limitations.
Suggested Sections

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

2. Background: Context of the employment relationship, reason for termination, and basis for the agreement

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

4. Termination and Severance: Details of employment termination date and severance package components

5. Non-Compete Obligations: Specific restrictions on competitive activities, duration (max 2 years per UAE law), and geographical scope

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

7. Confidentiality: Obligations regarding confidential information and trade secrets

8. Severance Payment Terms: Amount, timing, and method of severance payments

9. Return of Company Property: Requirements for returning company assets and information

10. Acknowledgments: Employee's confirmation of understanding and voluntary acceptance

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

12. General Provisions: Standard clauses including severability, entire agreement, and amendments

Optional Sections

1. Garden Leave: Used when implementing a paid non-work period before termination

2. International Restrictions: Include when the employee's activities span multiple jurisdictions

3. Intellectual Property Rights: Required when the employee had access to or created IP during employment

4. Post-Termination Assistance: Include when requiring employee cooperation for transition or pending matters

5. Tax Provisions: Include when tax implications need specific addressing or for international employees

6. Release of Claims: Optional mutual release of potential legal claims

7. Reference and Announcements: Include when parties agree on specific communication about the departure

Suggested Schedules

1. Schedule 1 - Severance Calculation: Detailed breakdown of severance payment components and calculations

2. Schedule 2 - Restricted Territory: Detailed map or list of geographical areas covered by non-compete restrictions

3. Schedule 3 - Restricted Customers: List of specific customers covered by non-solicitation provisions

4. Schedule 4 - Company Property: Itemized list of company property to be returned

5. Appendix A - Acknowledgment Form: Separate signature page confirming understanding of restrictions

6. Appendix B - Confidential Information: Detailed description of confidential information covered by 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

Telecommunications

Manufacturing

Retail

Energy

Real Estate

Consulting

Pharmaceuticals

Media and Entertainment

Relevant Teams

Human Resources

Legal

Finance

Executive Leadership

Sales

Business Development

Research and Development

Operations

Information Technology

Product Development

Customer Success

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Technology Officer

Sales Director

Business Development Manager

Senior Software Engineer

Product Manager

Account Executive

Regional Manager

Research Director

Technical Lead

Senior Consultant

Head of Operations

Marketing Director

Senior Investment Analyst

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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