Question: I work in HR at a well-known company in Dubai. If I start my own HR consultancy as a side business, would this be a conflict of interest? Could it breach the non-compete clause with my current employer?
Answer: Employees can start a new business or join an existing one in the UAE if their employer provides a No Objection Certificate (NOC). So, if you plan to launch an HR consultancy while working for your current employer, securing an NOC is advisable.
Starting an HR consultancy with a similar focus to your current job might be seen as competition if your employment contract includes a non-compete clause.
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This is aligned with Article 10(1) of the Federal Decree Law No. 33 of 2021, which states, “When an employee accesses the employer’s clients or business secrets, the employer can include a non-compete clause in the contract. This clause should detail the location, duration, and nature of the restricted work and should not exceed two years after the contract ends.
However, the non-compete clause might not be applicable after you leave the job if you and your employer have a written agreement stating that the non-compete does not apply post-employment, as per Article 12 (4) of the Cabinet Resolution No. 1 of 2022.
Additionally, exemptions to the non-compete clause are possible as per Article 12 (5), including:
a. If you or your new employer compensates the former employer with up to three months’ salary, with the employer’s written consent.
b. If the contract ends during the probationary period.
c. Specific professional categories as determined by the Ministry based on the UAE job market needs.
If your current employer provides an NOC for your HR consultancy, it may not be considered a conflict. Otherwise, they might not issue a competition waiver.
Contact the Ministry of Human Resources and Emiratisation for further details.
Ashish Mehta, founder and Managing Partner of Ashish Mehta & Associates, is qualified to practice law in Dubai, the UK, and India. Visit www.amalawyers.com for more information. Send questions to news@khaleejtimes.com or Legal View, Khaleej Times, PO Box 11243, Dubai.
