Dubai Forums Dubai Expat Forums Dubai Expat Help Forum

I know this issue has been discussed ad nauseam on these boards, and I've asked a similar question in the past myself, but trawling through the archives it seems that everyone has a different answer. Anyhow, let's give it another go.

I work for a company in a Free Zone (DIFC). I've only been here for a couple of months, in fact my residence visa was only issued a month ago. The residence visa states that my employer is DIFC. For various reasons my job has not worked out as I'd hoped I want to leave my current employer. I am looking at a couple of alternative options, which include a company that's in DIFC and a company in another Free Zone.

Does anyone have any well-informed opinion on whether (diregarding additional issues related to non-compete clauses and so on) I will be able to change jobs to either of these employers? And will I need a NOC from my current employer in both cases?

If you are a freezone employee, there is no ban as you do not deal with the labour office, Immigration does not have any bans now.

DIFC might not let you move to another company within DIFC but I am sure you can move to another freezone..

I'm curious about this as well. I am working in a company registered in a FZ and for some reason, there is a non-compete clause in my contract even though my peers, managers and directors do not have such in their contracts.

Granted, I may have overlooked this at the point of signing, but I would like to understand if this is truly binding. While I do not currently have any plans to leave my current company, I am somewhat concerned if this prohibition will prevent me from eventually moving on to another organization in the same field (e.g. partner/competitor).

While I can understand if this is an effort to protect the intellectual property and proprietary information of the organization, one can argue that a wayward employee can compromise confidential information, while someone who has been employed by a competitor for his skills may respect such information and contribute to the new employer using skills and experience gained over the past years.

Anyway, back to the point -- if, in the course of a year or two, I should be offered to take on a regional role with a partner or competitor, how would I be able to move on professionally with this restriction in place?

With regards to the restraint of trade/ non-competition clauses.

Firstly my experience is with companies outside of the Free Zones’ so I can’t comment on it at this stage; if someone perhaps has a copy of a Labour Contract from a FZ company and wanted to share it ….

With regards to Labour Department contracts outside of the FZ its clear cut, if it is not included in the original Labour Contract (single, double sided) document that is lodged with the Department of Labour then it is not enforceable.

I’ve pointed this out before, but perhaps should summarise. The officially recognised labour contract is a single double sided page, English and Arabic. All amendments (such as non-competition clauses) have to be noted under the “Other” portion of the contract, attached and ratified by the Labour Department in order to be legally recognised by the Labour Department. From a “Western” perspective a company will normally present a new employee with an Offer of Employment letter and follow it up with a Letter of Appointment. The Letter of Employment would contain the information pertaining to the position, hours of work and contractual obligations by both parties. In most “western” countries this is legally binding once both parties have signed it.

In the UAE the only contract that is recognised by the Labour Department is the double sided page and any ratified appendages! Any form of Letter of Employment that you may be presented by your company is not legally binding and can really be construed as guidelines of employment! Most companies will take the salient points from the Letter of Employment and transcribe them as best as possible into the official Labour Contract which is a “boiler plate” document (for the Department of Labour).

Strictly speaking the official document is scanned into the Labour Departments database, any personnel issues pertaining to an employee during his contract term are then supposed to be lodged with the department and appended to the contract file in their system – this includes warnings, salary and position adjustments etc. In practical terms very few PRO’s follow this procedure as it is very time consuming especially if you have a number of employees. In a situation where a dispute arises between employer and employee they will normally consult their on-line data first!

dbxsoul wrote:Firstly my experience is with companies outside of the Free Zones’ so I can’t comment on it at this stage; if someone perhaps has a copy of a Labour Contract from a FZ company and wanted to share it ….

Been working for one year with a company in DIC FZ, I don't have govt labour contract except the company's own offer letter/contract (where contains non-competition clause).

Though, I happened to ask salary certificate from FZA office for sponsoring my relative a visit visa (therefore I know my employment is legal/registered). However, should I worry and ask the contract? What would be the effects (advantage/dis) with or without contract in terms of resignation, gratuity, switching jobs, law suit, etc?

Doesn't seem to be a problem, xty. When I had to sponsor our maid they required an employment contract or simply a letter from the Free Zone confirming my employment and salary.

jayzed wrote:Doesn't seem to be a problem, xty. When I had to sponsor our maid they required an employment contract or simply a letter from the Free Zone confirming my employment and salary.

I know about sponsoring requirements because I had sponsored 2 times for my relative and friend to come. Both with copy of salary letter from FZA.

What I was asking is regarding gratuity, switching jobs, law suit with/without government/FZ contract.

xty wrote:

jayzed wrote:Doesn't seem to be a problem, xty. When I had to sponsor our maid they required an employment contract or simply a letter from the Free Zone confirming my employment and salary.

I know about sponsoring requirements because I had sponsored 2 times for my relative and friend to come. Both with copy of salary letter from FZA.

What I was asking is regarding gratuity, switching jobs, law suit with/without government/FZ contract.

Oh, I see. Sorry, can't help you there - I'm in the same position and I would love to know the answer, but nobody seems to know!

hamadl wrote:If you are a freezone employee, there is no ban as you do not deal with the labour office, Immigration does not have any bans now.

DIFC might not let you move to another company within DIFC but I am sure you can move to another freezone..

Does this mean that if we join one company in DIFC we may not work for any other company in DIFC immediately after that?

What are the conditions under which one can move from one company in DIFC to another company in DIFC?

Also what are the implications of DIFC being a free zone?

look at the other posting immediatly above this one (at the moment).
it is about the ban in place if transfering between companies within the airport free zone.

i suggest that if you have a query you ask the free zone authority office in the particular free zone, as it seesm they all have slightly different interpretations of the ban issue