Waiving Non Competition Clause for the Employee
S.S. Legal Consultants L.L.C.
Head of Legal Practitioner at S.S. Legal Consultants L.L.C.
An employee shall be exempted from the non-compete clause provided for in Article (10) of the Employment Law under the following conditions:
a. If the employee or the new employer pays compensation not exceeding three months of the employee's wage agreed upon in the last contract to the former employer, and the former employer's written consent thereto is required.
b. If the contract is terminated during the probationary period.
c. Any professional categories according to the needs of the employment market in the UAE, as determined by the decision of the Ministry under the employment classification approved by the Cabinet.”
Furthermore, an employer needs to initially cancel a work permit of an employee once an employee is terminated or resigns from employment. An employer needs to follow the procedures related to the cancellation of a work permit as per the guidelines of the Ministry of Human Resources and Emiratisation (MoHRE). This is in accordance with Article 7(3) of the Cabinet Resolution No. 1 of 2022, which states,
“Procedures for cancelling work permits:
a. The submission of an application for cancelling the work permit shall be through the channels specified by the Ministry.
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b. Completion of the required data and attached documents.
c. Payment of the fines for delays in issuing the work permit or for failure to renew it, if any.
d. Acknowledgement by the establishment of granting the employee all of his entitlements.
e. Any other conditions determined by resolution of the Minister or whomsoever he delegates."
Based on the provision above, you may not require an NOC from your employer. Furthermore, your employer should not deny cancelling your work permit and UAE residency visa because you are joining a competitor entity of your current employer in the UAE. If your employer does not cancel your work permit and UAE residency visa, you may file a complaint against your employer with MoHRE in accordance with the provisions laid down in Federal Decree Law No. 20 of 2023 Amending Certain Provisions of Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relationships.