Two of the most important assets of any business are its confidential information and its employees. Companies stand to lose both when their employees defect to a competitor. In this bulletin we highlight some of the key legal, commercial and practical measures available to UAE employers when faced with a competitor poaching one or more of their employees.

Legal protection

UAE law expressly recognises an employer's need to protect its business interests in relation to business secrets and protection of clients. Non-compete restrictions are permissible provided they are reasonable in terms of scope, territory and duration and there are civil and criminal liabilities for employees who unlawfully disclose their employer's confidential information. UAE law also prohibits "unfair competition", which includes hiring an employee from a third party with a view to obtaining clients or confidential information from that third party.