A Non-Compete Disclosure Agreement is essential for businesses operating in the UAE to protect their legitimate interests and confidential information. This document is particularly relevant in the context of UAE's dynamic business environment and is structured to comply with local labor laws, including UAE Federal Decree-Law No. 33 of 2021 and Ministerial Resolution No. 297 of 2022. The agreement is typically used when engaging employees, consultants, or business partners who will have access to sensitive information or could potentially compete with the business. It combines both non-compete restrictions and confidentiality obligations, ensuring comprehensive protection while remaining enforceable under UAE law. The document is especially important given the UAE's status as a major business hub where employee mobility and competition are significant factors.
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Key Requirements PROMPT example:
Non Compete Disclosure Agreement
"I need a Non Compete Disclosure Agreement for a Dubai-based technology company, protecting our AI algorithms and client data, to be used for senior software developers who will have access to our source code and proprietary technology, with restrictions covering the UAE and Saudi Arabia."
1. Parties: Identifies the contracting parties - typically the employer/company and the employee/contractor
2. Background: Sets out the context of the agreement and the relationship between the parties
3. Definitions: Defines key terms including 'Confidential Information', 'Competitive Activities', 'Territory', and 'Restricted Period'
4. Confidentiality Obligations: Details the obligations regarding confidential information, including use, storage, and non-disclosure requirements
5. Non-Competition Covenant: Specifies the non-compete restrictions, including duration, geographical scope, and prohibited activities as per UAE Labor Law
6. Non-Solicitation: Prohibitions on soliciting employees, customers, or suppliers
7. Return of Confidential Information: Requirements for returning or destroying confidential information upon termination
8. Duration and Survival: Specifies the term of the agreement and which provisions survive termination
9. Remedies: Outlines available remedies including injunctive relief and damages under UAE law
10. General Provisions: Standard clauses including governing law, jurisdiction, and entire agreement provisions
1. Compensation for Restrictions: Required if specific compensation is provided for non-compete obligations as per UAE labor law
2. Exceptions and Permitted Activities: Defines specific activities or information excluded from restrictions
3. Assignment and Succession: Include if rights under the agreement may need to be transferred
4. Garden Leave: Include if applicable to senior executives or key employees
5. Monitoring and Compliance: Include for high-risk situations requiring specific compliance procedures
6. Third Party Rights: Include if agreement benefits need to extend to group companies or affiliates
7. Arabic Translation: Include if agreement needs to be bilingual for UAE court enforcement
1. Schedule 1 - Restricted Territory: Detailed description of geographical areas where restrictions apply
2. Schedule 2 - Competitive Business Activities: Detailed list of prohibited business activities and competitors
3. Schedule 3 - Confidential Information Categories: Comprehensive list of types of confidential information covered
4. Schedule 4 - Key Customers and Suppliers: List of specific customers and suppliers covered by non-solicitation provisions
5. Appendix A - Acknowledgment Form: Form for periodic acknowledgment of compliance with obligations
6. Appendix B - Exit Interview Checklist: Checklist for ensuring compliance upon termination of relationship
Authors
Relevant legal definitions
Clauses
Relevant Industries
Technology
Financial Services
Real Estate
Healthcare
Oil & Gas
Construction
Retail
Professional Services
Manufacturing
Telecommunications
Hospitality
Education
Maritime
Aviation
Media & Entertainment
Relevant Teams
Human Resources
Legal
Information Technology
Research & Development
Sales
Business Development
Operations
Finance
Marketing
Product Development
Engineering
Customer Service
Strategy
Executive Leadership
Relevant Roles
Chief Executive Officer
Chief Technology Officer
Senior Manager
Technical Director
Sales Manager
Business Development Executive
Research Scientist
Software Engineer
Product Manager
Financial Controller
Operations Director
Marketing Manager
Account Executive
Technical Specialist
Project Manager
Business Analyst
Department Head
Regional Manager
Consultant
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