Under the revised New Labour Law, effective from February 2nd, 2022, significant amendments have been introduced regarding non-compete restrictive covenants aimed at safeguarding employers’ interests post-employee departure.
Exploring Non-Compete Provisions
Employers rely on non-compete clauses to shield their businesses from potential harm caused by departing employees, such as breaches of confidentiality and solicitation of clientele.
Legislative Framework
The alterations outlined in the Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations (referred to as the ‘Employment Law’) and Cabinet Resolution No. 1 of 2022, which pertains to the Executive Regulations of Federal Decree Law No. 33 of 2021, govern these provisions.
Clarity and Guidance
These revisions offer enhanced clarity regarding non-compete agreements, addressing various concerns that impact both employers and employees. Let’s delve into some common queries to shed light on employer and employee responsibilities.