Question: I work with a firm in mainland Dubai. I’m looking to start out a business in the UAE. Are there any legal guidelines I need to pay attention to? Are there any legal complications so far as starting a business whereas working is concerned? Conflict of curiosity, for example.

Response: Pursuant to your queries, as you’re employed by a mainland agency in Dubai, the provisions of Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations (the ‘Employment Law’) and those of Cabinet Decision No. 1 of 2022 on the Implementation of Federal Decree Legislation No. 33 of 2021 Regarding the Regulation of Employment Relations (the ‘Cabinet Resolution No. 1 of 2022’) are applicable.

An employee might set up an entity or be a companion or shareholder in an current one in the UAE, offered the employer points a no objection certificate (NOC). Subsequently, it is best to acquire an NOC from your current employer before beginning your own enterprise.

Additional, if the activities of your proposed entity are much like your present role, your employer may consider the entity as a competitor. That is in accordance with Article 10(1) of the Employment Law, which states: «The place the worker performs a work which provides him entry to employer’s customers or business secrets, the Employer could make a provision within the employment contract that the employee shall not compete with or be engaged in any business which competes with him in the identical sector after the expiry of the contract. Such clause shall specify the place, time, and type of labor to the extent mandatory to guard the respectable enterprise pursuits, and the non-competitors interval shall not exceed two years after the expiration of the contract.»

Nonetheless, a non-competition clause might not be relevant if you happen to and your employer will agree in writing that it does not apply on termination of your present contract. This is in accordance with Article 12 (4) of the Cabinet Decision No. 1 of 2022, which states: «If could also be agreed in writing not to use the non-competition clause after the termination of the employment contract.»

Additional, the provisions of non-competitors could also be exempted as mentioned in Article 12 (5) of the Cabinet Resolution No. 1 of 2022, which states: «An worker shall be exempted from the non-compete clause offered for in Article (10) of the Employment Legislation under the following conditions:

a. If the worker or the new employer pays compensation not exceeding three months of the employee’s wage agreed upon within the last contract to the former employer, and the former employer’s written consent thereto is required.

b. If the contract is terminated throughout the probationary period.

c. Any skilled classes in response to the wants of the employment market in the UAE, as determined by decision of the Ministry beneath the employment classification approved by the Cabinet.»

Therefore, ドバイ 法人設立 代行 based on the aforementioned choices and provisions of regulation, you could consider resigning from your employment by serving the stipulated discover period. Thereafter, upon completion of your discover period and cancellation of work permit/residence visa, you may establish your enterprise entity in the UAE to avoid any legal penalties.

Nonetheless, if you establish an entity which will conduct related activities as your earlier employer, the previous employer may file a complaint/civil case against you. Article 12(2) of the Cabinet Resolution No. 1 of 2022 states: «If a dispute arises over the non-competitors clause and it’s not settled amicably, the matter shall be referred to the judiciary and the burden of proving the alleged injury shall lie with the employer.»

It’s possible you’ll contact the Ministry of Human Resources & Emiratisation for extra clarifications related to this matter.

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He’s qualified to practise legislation in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: information@khaleejtimes.com or ship them to Legal View, Khaleej Occasions, PO Box 11243, Dubai.