Non- Competition Clause
 

Hi,
I want to turn down an offer that I've previously accepted & accept another offer from another organisation within the same emirate but not if Abu Dhabi city.
I haven't started yet, or signed what I would call a full contract or applied for permits etc but have a completed licensing.

I signed the offer letter which says 'the offer letter is to be read in conjunction with & forms part of the contract of employment'

the non- competition clause:
during the term of employment you will not perform the same of substantially the same duties on behalf of any competitive business in the healthcare sector of Abu Dhabi for a period of 12 months after the termination thereof, regardless of the reason for the employment termination (article 127 UAE Labor Law)

Am I allowed to take up another offer?
Thanks!

Re: Non- Competition Clause
 

Sure, you are allowed to take up another offer, if the company you signed the first offer letter with, agrees to tear it up. These clauses do not get automatically enforced by anyone, a company/organisation has to request that it be enforced (the same with employment bans, a company has to file something, if they don't, there's no ban).

What are the reasons you want to take up the other offer?

If it's a very compelling reason and an exceptional circumstance - you probably have a shot at getting the company to tear up the offer letter and allow you to go to the other company.

If this is just a cash grab, you could, also, end up with no offers, if the second company finds out you're reneging on the first company - and they will find that out. At my organisation, I recommended offers be pulled in those circumstances, because if you will walk out on someone else, you will also walk out on us at the first convenience. But I also know of others who didn't care at all about that.

So, tread carefully, and weigh if it is worth the headache and potential consequences to bail on your offer letter.

Re: Non- Competition Clause
 

Thanks Carcajou,
Reason for changing my mind: i think the location would be better for the family, Al Ain rather than a big city like Abu Dhabi, and cost of living would also be cheaper.
The money is exactly the same.
The second company knows about it & doesn't think it'll be a problem- but I don't want to take their word for it! They've asked me to sign their contract & and write to the other citing personal reasons.

worst case scenario, can they enforce this clause? or are they likely to want to enforce it?

Re: Non- Competition Clause
 

They can enforce the clause.

Are they likely to? What is the precedent at your company? Have they allowed others to walk like this in the past, or did they enforce the ban? How angry have the bosses been, when this has come up before? All of that information together gives you a likely picture of how they will approach it.

Your reasons are not compelling or exceptional. It is partly financial as you cited "lower cost of living." How has your company reacted to that with others in the past?

I would personally do a year at the first company, then hit the market again at about the 9-10 month mark.

If you're feeling confident, go for it, but it is a gamble and you may end up with a ban.

Re: Non- Competition Clause
 

Thanks, thats very helpful.

The first place is a new venture, so there's no track record to look at...
I'll have to think it over, it sounds like a risk...

Re: Non- Competition Clause
 

A twelve month non-compete clause will not stand up in court here. See these articles on the topic.


Employer must have a solid case to sue over non-compete clause | The National

UAE non-competition clauses in employment contracts have legal limitations | The National

Re: Non- Competition Clause
 

Don't you wish people knew the law and advised correctly as opposed to giving on the fly "Facts" that are anything but that.

Re: Non- Competition Clause
 

Can you imagine worrying about a competition clause for a company you don't even work for?

Re: Non- Competition Clause
 

As I said in the other thread: feel free to roll the dice and see. I, too, have seen the result of some of these cases. If company owner has a little bit of wasta and is angry, OP won't be working anywhere.

Re: Non- Competition Clause
 

From your previous postings you seem very risk adverse. Even after offers accepted, air tickets and all that stuff I have seen countless people walk away from roles. Only to start somewhere else instead.

Re: Non- Competition Clause
 

Yes that's right.

I've also seen people walk (as mentioned in my post to OP) with no consequences and others get fried and scrambled.

There are a lot of variables to be considered. It's not a cut-and-dried matter.

Re: Non- Competition Clause
 

Says the one who included this gem in another thread about the UAE legal system: "Precedent has been set numerous times"....

Re: Non- Competition Clause
 

You work for the Daily Mail? Taking things out of context? And while the UAE Legal system is not based on precedent, when you get to the higher courts and compare case a with case b, the judges will usually go with what's happened before.

Re: Non- Competition Clause
 

surely an offer letter isn't fully contractual?
Once a contract of employment is signed, then i'd have assumed it'd get sticky.

Re: Non- Competition Clause
 

An offer letter isn't but the contract lodged with the Ministry is, expect that any terms that are contrary to UAE Labour Law are still not valid even if in a signed contract.