DCC 2/2008
Type
Case
Court
Dubai Court of Cassation
Jurisdiction
Dubai
Taxonomy
Rights & Duties of Employees & Employers
Copyright
LexisNexis
Decision date
24 Feb 2008
Catchwords
Restraint of Trade – Work for a competitor – Compensation – Employee – Evidence of Damage
This case involved an employee who had left a company and moved to a competitor despite the fact their contract of employment included anti-competitive clause which prevented them from working in the same field for two years. The court refused to award compensation as there was no evidence that this had caused damage to the company.
Background
A company filed a case against an employee and requested the court cancel the employee's sponsorship and order her to pay 100000 AED in compensation for the damage she had caused. The company stated the employee had worked as a developer and then had moved to a competitor violating the contract of employment since the contract included a clause which stated the employee should not work in the same field for two years after leaving the position.
The court rejected the case.
The company appealed the ruling before the court of appeal. The court upheld the appealed ruling.
Decision