‘Is a non-compete clause valid if I quit during the probation period?’

The non-compete clause should not be used as a way of preventing any departing employee from taking another job. Getty Images

Question: I started a new job in April and am still in my probation period of up to six months. I am not happy, so plan to resign as soon as I find another job. Do I need to give notice in my probation period? For how long?

When I started, they made me sign a non-compete clause even though I am only an accounts clerk and am not involved in the sales side at all. Will this cause a problem, and can this company stop me from taking a new job? What if the new job is for a similar business? NR, Dubai

Answer: NR is required to give his employer written notice of his resignation. This always applies, even if someone is on probation.

This is covered in UAE labour law, Article (9), which states: “If the worker wishes to move during the probationary period, to work for another employer in the State, he shall notify the original employer of the same in writing within not less than one month from the date of his wish to terminate the contract.”

The same clause adds: “And unless agreed otherwise, the new employer shall compensate the first employer for recruitment or contract costs.” Note that costs are borne by the employers, not the employee.

In this situation, the non-compete clause will not be enforceable. This was covered in the follow-up legalisation to the main labour law, Cabinet Resolution No. (1) of 2022 Concerning the Executive Regulations of Federal Decree-Law No. (33) of 2021 Regulating Labour Relations. Article (12) of this states: “The worker shall be exempted from the non-compete clause … in accordance with the following conditions: b. If the contract is terminated during the probation period.”

The non-compete clause protects the interest of a business and should not be used as a way of preventing any departing employee from taking another job. It does not apply to all employees in any business and for such a clause to be upheld in a court, the company would need to demonstrate that there would be genuine harm to their business in some way.

The burden of proof is on the employer. This is made clear in the executive regulations, which state that such a clause is only relevant if it can be demonstrated that “the work’s nature … causes gross damage to the employer’s legitimate interests”.

To clarify, NR must give one month’s written notice, will not be bound by a non-compete clause, and all costs must be borne by his employers.

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Q: I work for an international company with an ADGM visa and transferred to them at the start of 2024. It was a very busy year, so I did not take my entire annual leave.

I have asked for all eight days to be added to this year’s leave, but the HR department is not letting me do that. I was able to carry days forward when working for the company in Hong Kong, so it seems unfair that the rules are different. What does the law say so I have all details before I make my complaint? HC, Abu Dhabi

A: HC is a permanent employee with a contract of employment under ADGM, so the provisions of this employment law are the only ones that apply. He should have signed a contract that states this.

The provisions that apply are those set out in the latest rules, Employment regulations 2024, which came into effect on April 1, 2025.

Section 21 covers annual leave and clause 2 states: “An employee is entitled to carry forward accrued but untaken vacation leave into the next vacation leave year for a maximum period of 12 months, after which any unused vacation leave carried forward from the previous vacation leave year shall expire. The amount of accrued but untaken vacation leave to be carried forward may be agreed between the employer and the employee, provided that nothing shall prevent an employee from carrying forward at least five days of vacation leave in each vacation leave year.”

All employers must apply the provisions in the relevant law as a minimum, although they can choose to offer benefits above the minimum required. Five days is the amount stated in law but the employer can choose to permit more.

If the reason is due to pressures of work, HC should speak to his manager to request special dispensation to carry forward additional days of annual leave, although there is no legal obligation to do so.

Should the company refuse to permit his request, there are no grounds for a complaint under the ADGM employment regulations.

Contact Keren Bobker at [e-mail] or at www.financialuae.com

The advice provided in our columns does not constitute legal advice and is provided for information only