Is a non-compete enforceable in the UAE?

Article 10 of Federal Decree-Law No. 33 of 2021 permits one, but on conditions. The work must have given the employee knowledge of the employer's clients or access to work secrets, and the clause must be limited in time, place and type of work to what is necessary to protect the legitimate business interests. A clause drafted without those limits is not the restriction the statute authorises.

What is the maximum non-compete period in the UAE?

Two years. Article 10(1) of Federal Decree-Law No. 33 of 2021 states that the non-competition period shall not be more than two years from the expiry date of the contract. The UAE Government Portal repeats the same two-year ceiling in its guidance on private-sector employment contracts.

Does the restriction survive if the employer terminates unlawfully?

No. Article 10(2) of Federal Decree-Law No. 33 of 2021 provides that the requirement is nullified if the employer terminates the employment contract in violation of the Decree-Law. Separately, Article 10(3) bars the employer's claim for breach once a year has passed from the date the violation was discovered.

Non-Compete Agreement in the UAE

A UAE non-compete is not a free-standing bargain. Article 10 of Federal Decree-Law No. 33 of 2021 lets the employer impose one only where the job gave the worker knowledge of the employer's clients or access to its work secrets, and only if the clause is limited in time, place and type of work to what is necessary to protect legitimate business interests. The ceiling is two years from the expiry of the contract, and the restriction is nullified outright if the employer terminates the contract in breach of the law.

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Governing law

Article 10 of Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships is the operative provision for post-termination non-competition in onshore private-sector employment, with detail left to the Implementing Regulation.

Federal Decree-Law No. 33 of 2021, Art. 10

What a non-compete agreement has to contain in the UAE

The clause is available only where the work assigned to the worker allows him to gain knowledge of the employer's clients or to access its work secrets.
Federal Decree-Law No. 33 of 2021, Art. 10(1)
The restriction must be specified in terms of time, place and type of work, to the extent necessary to protect the legitimate business interests, and the non-competition period may not exceed two years from the date the contract expires.
Federal Decree-Law No. 33 of 2021, Art. 10(1)
The requirement is nullified if the employer terminates the employment contract in violation of the Decree-Law.
Federal Decree-Law No. 33 of 2021, Art. 10(2)
An employer's claim that the worker breached the clause will not be heard once one year has passed from the date the employer discovered the violation.
Federal Decree-Law No. 33 of 2021, Art. 10(3)
The Implementing Regulation defines the provisions regulating Article 10 and may exclude skill levels or occupations from the non-competition requirement altogether.
Federal Decree-Law No. 33 of 2021, Art. 10(4)

What catches drafters out

A non-compete does not control mobility on its own. Article 27 of Cabinet Resolution No. 1 of 2022 lets a worker move to another employer where the agreed term expired without renewal, where the contract ended under Articles 42 or 45, or where the employer terminated without fault on the worker's part.
Terminating employment contracts and arbitrary dismissal (citing Cabinet Resolution No. 1 of 2022, Art. 27), UAE Government Portal
Confidentiality has its own separate remedy. Article 44(5) allows dismissal without notice where the worker discloses a work secret related to industrial or intellectual property that causes the employer loss, a missed opportunity, or personal benefit for the worker, after a written investigation.
Federal Decree-Law No. 33 of 2021, Art. 44(5)