UAE Civil Transactions Law

Article 852

Book Two: Nominate Contracts · Section Three: Employment Contracts · Chapter Two: Employment Contract · Part Two: Effects of the Employment Contract · First: Obligations of the Employee

If a penalty clause is agreed upon in case of breach of the non-competition clause, and this clause is exaggerated to the extent that it becomes a means of compelling the employee to remain with the employer for a period longer than that agreed, the court may annul or amend the clause.

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