UAE Non-Compete Agreements: Are They Enforceable?

Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021), an employer can ask an employee to sign a non-compete clause that restricts them from working for a competitor after leaving — but only within strict limits.

To be enforceable, the restriction must be no longer than two years, and must be limited in geographic area and in the type of work covered. A blanket, open-ended ban will not hold up.

The clause must protect a legitimate interest — such as confidential information or client relationships the employee had access to — rather than simply preventing the person from earning a living.

A non-compete usually cannot be enforced if the employer terminated the employee unlawfully, or if the role did not give the employee access to sensitive information or clients.

Employers and employees can also agree to waive or shorten a non-compete in writing, and many do so as part of an exit settlement to keep the separation clean.