Since Hadef & Partners’ article on the enforceability of non-compete clauses in our November 2009 Hadef Highlights newsletter, there have been several court decisions on the subject, notably among them a judgment of the Dubai Court of Cassation on 22 December 2008 where the court ruled, amongst other things, that the absolute prohibition of an employee from working for a competitor is tantamount to a restriction of the employee’s liberty.

In brief

• Non-compete clauses, which are often included in contracts of employment to protect the interests of employers, may not always be enforceable.

• This may seem contrary to the expressly agreed intentions of the parties, as set out in the contract. However, a non-compete clause may be rendered unenforceable by the actions of the employer resulting in a waiver of rights.