The Dubai International Financial Centre (DIFC) has a standalone and distinct employment regime governed by DIFC Law No. 2/2019 DIFC Employment Law. This Practice Note analyses the use of post termination covenants by parties in the DIFC and their legal and practical implications under DIFC Law No. 2/2019. Similar to any other jurisdiction, employers subject to DIFC Law No. 2/2019 typically incorporate certain post termination covenants in their employment contracts so as to safeguard their commercial interests. Post termination covenants protect businesses and ensure that the terminated employee is unable to injure neither the commercial interests nor the reputation of the concerned business.

For this purpose, as a matter of practice, employers include post termination covenants within contracts in order to restrict the terminated employee from circulating any sensitive or confidential information or information which may provide an undue advantage either to the competitors of the business or to the general public. This information may have been obtained by the employee during the period of his employment. With the help of post termination covenants, employers also ensure that the terminated employee is unable to compete with the business, directly or indirectly.