Non-Compete Agreement

An agreement on your letterhead, signed by the company and the employee, that limits competing work after the contract ends by type of work, place and a period of at most two years (Article 10), as PDF or DOCX.

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Article 10(1) allows the employer to require this undertaking only where the work lets the employee know its clients or access its work secrets, and only as far as is necessary to protect its legitimate business interests. The undertaking must name the type of work, the place and the period, and the period may not exceed two years from the end of the contract; the page refuses a longer one. Whether it can be enforced depends on these limits and on the facts: a dispute not settled amicably goes to the courts, and the employer must prove the damage it alleges (Cabinet Resolution No. 1 of 2022, Article 12(2)).

The undertaking does not bind the employee if the employer terminates the contract in violation of the Decree-Law (Article 10(2)) or if the reason for ending the contract is attributable to the employer or to its breach of its obligations (Article 12(3)). The employee is exempt if the contract ends during probation, or if the employee or a new employer pays the employer compensation of up to three months’ wage with its written consent (Article 12(5)(a) and (b)). The parties may also agree in writing that it does not apply (Article 12(4)). The agreement prints these exceptions. Article 12(5)(c) adds professional categories exempted by a resolution of the Minister; the agreement does not list them.

Letter details

Employee namePosition

Article 10(1) allows the undertaking only where the work gives knowledge of the employer’s clients or access to its work secrets.

Restricted type of workPrinted after “Type of work:” · 300 characters maxPlacePrinted after “Place:” · 200 characters maxPeriod (months)Counted from the end of the contract · at most 24 (Article 10(1))Consideration paid to the employeeAEDOptional · the law does not require it

Company

Company nameAddress

Company logo

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Signatory

Signer nameTitle

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Legal basis

Last reviewed: 2026-09-25

* A letter template you review, complete and sign — not legal advice. The employer who issues it is responsible for its content. Whether a non-compete undertaking can be enforced depends on its limits and on the facts. It is allowed only where the work gives knowledge of the employer’s clients or access to its work secrets, limited in time, place and type of work to what protects the employer’s legitimate interests, for at most two years after the contract ends (Article 10(1)). It does not apply after an unlawful termination by the employer or a termination attributable to the employer, after a termination during probation, or on payment of compensation of up to three months’ wage with the employer’s written consent (Article 10(2); Cabinet Resolution No. 1 of 2022, Article 12(3) and (5)). In a dispute the employer must prove the damage (Article 12(2)). The employment contract, the law that actually applies (the DIFC and ADGM free zones have their own employment laws) and any decision of MOHRE or a court prevail over this template — check it with MOHRE or a qualified adviser before you issue it.

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Your company name

[Company address]

To[Employee Name]Date25 September 2026

Non-Competition Agreement

This agreement is made between [Company] (the Company) and [Employee Name], [Position] (the Employee). It supplements the employment contract between the Company and the Employee and forms part of it.

The Employee’s work as [Position] allows the Employee to gain knowledge of the Company’s clients. The Company therefore requires the undertaking below, as Article 10(1) of Federal Decree-Law No. 33 of 2021 (the Decree-Law) permits.

For 12 months after the employment contract ends, the Employee shall not compete with the Company or be engaged in any competing project in the same sector, within the following limits:

Type of work: [Type of work].

Place: [Place].

Period: 12 months from the date the employment contract ends.

These limits go no further than is necessary to protect the Company’s legitimate business interests. The period does not exceed two years from the end of the contract (Article 10(1) of the Decree-Law; Article 12(1) of Cabinet Resolution No. 1 of 2022).

This undertaking is void if the Company terminates the employment contract in violation of the Decree-Law (Article 10(2)), and does not apply if the reason for terminating the contract is attributable to the Company or to its breach of its legal or contractual obligations (Article 12(3) of Cabinet Resolution No. 1 of 2022). The Employee is exempt from it if the contract is terminated during the probationary period, or if the Employee or a new employer pays the Company compensation of not more than three months of the Employee’s wage as agreed in the last contract, with the Company’s written consent (Article 12(5)). The parties may agree in writing that it does not apply after the contract ends (Article 12(4)).

A dispute over this undertaking that is not settled amicably is referred to the courts, and the Company bears the burden of proving the damage it alleges (Article 12(2)). A claim by the Company for a breach is not heard if one year has passed from the date the breach was discovered (Article 10(3) of the Decree-Law).

Each party keeps a signed copy of this agreement.

On Behalf of [Company]

[Signer]
[Title]

SEAL

Agreed by the Employee

I have read this agreement and I agree to the undertaking set out in it.

Signature:Date:

[Employee Name]
[Position]

This tool writes a non-competition agreement between a company and an employee, signed by both. It states why the employee’s work justifies the undertaking, the type of work the employee may not compete in, the place and the period after the contract ends, an optional payment for the undertaking, and the cases in which the law sets it aside. The page refuses a period longer than two years.

What Article 10 allows

Federal Decree-Law No. 33 of 2021, Article 10(1): “If the work assigned to the worker allows him to gain knowledge of the employer’s clients or have access to its work secrets, the employer may require that the worker under the employment contract shall not, after the expiry of the contract, compete with the employer or be engaged in any competing project in the same sector, provided that the requirement is specified, in terms of time, place and type of work, to the extent necessary to protect the legitimate business interests. The non-competition period shall not be more than two years from the expiry date of the contract.”

Cabinet Resolution No. 1 of 2022, Article 12(1) adds that the clause must set its geographical scope, its term, “provided that it does not exceed two years from the contract expiry date”, and the nature of the work. A dispute that is not settled amicably goes to the courts, “and the burden of proving the alleged damage shall lie with the employer” (Article 12(2)). Whether a court enforces the undertaking therefore depends on these limits and on the facts.

When the undertaking does not apply

Article 10(2): “This requirement shall be nullified if the employer terminates the employment contract in violation of the provisions hereof.” Cabinet Resolution No. 1 of 2022, Article 12(3): the clause “shall not apply if the reason for terminating the contract is attributed to the employer or the breach of his legal or contractual obligations.”

Under Article 12(5) the worker is exempted if the worker or the new employer pays the previous employer “compensation not exceeding three months of the worker’s wage as agreed upon in the last contract, subject to the previous employer’s written consent thereto”, or “If the contract is terminated during the probationary period”. Article 12(5)(c) adds professional categories determined by a resolution of the Minister; the agreement does not list them. The parties may also agree in writing not to apply the clause (Article 12(4)). The agreement prints these exceptions.

Frequently Asked Questions

How long can a non-compete last in the UAE?

At most two years from the end of the employment contract (Article 10(1) of Federal Decree-Law No. 33 of 2021; Cabinet Resolution No. 1 of 2022, Article 12(1)).

Does a non-compete apply if the employee leaves during probation?

No. Cabinet Resolution No. 1 of 2022, Article 12(5)(b) exempts the worker if the contract is terminated during the probationary period.

Does the employer have to pay for the undertaking?

Neither Article 10 nor Article 12 requires a payment. The agreement has an optional line for one if the parties agree it.

Is the information I enter stored?

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