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Non Compete Clause / Agreement

Last activity 26 August 2021 by Rodrigo Del Rosario

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khanmazher

Hi,

I have resigned from my current company and have got my Iqama transferred to the new company.

I am spending my last few day of notice period, today my HR told me to sign a Non-compete agreement that I cannot join the competition in KSA for next 2 years.

This clause was not in my contract which I signed 5 years ago, it was not communicated to me when I resigned or when the transfer of Iqama happened.

I don't want to sign this, any one with legal expertise who can tell me the implications of not signing it.

Thanks,

live.ali

You don't happen to be working for any of the Juffali companies? I was asked to do the same by a previous employer however because i did not have an iqama I told them they could not withheld my final payment.

In general, people sign it and continue to work elsewhere not directly in competition with the company.

khanmazher

No I don't work for Juffali group or any of their companies.
I don't want to sign it, It was never communicated to me and just today (being my last 2 days on notice period) I was asked to do this.

My Iqama is already transferred to the new company, Can they legally block my end of service benefit payout if I don't sign this letter?

live.ali

khanmazher wrote:

No I don't work for Juffali group or any of their companies.
I don't want to sign it, It was never communicated to me and just today (being my last 2 days on notice period) I was asked to do this.

My Iqama is already transferred to the new company, Can they legally block my end of service benefit payout if I don't sign this letter?


Yes they can block your EOS benefits is what they try to blackmail with mostly. Try speaking to a legal counsel for your legal options.

khanmazher

live.ali wrote:
khanmazher wrote:

No I don't work for Juffali group or any of their companies.
I don't want to sign it, It was never communicated to me and just today (being my last 2 days on notice period) I was asked to do this.

My Iqama is already transferred to the new company, Can they legally block my end of service benefit payout if I don't sign this letter?


Yes they can block your EOS benefits is what they try to blackmail with mostly. Try speaking to a legal counsel for your legal options.


Legally are can they withhold this?

live.ali

khanmazher wrote:
live.ali wrote:
khanmazher wrote:

No I don't work for Juffali group or any of their companies.
I don't want to sign it, It was never communicated to me and just today (being my last 2 days on notice period) I was asked to do this.

My Iqama is already transferred to the new company, Can they legally block my end of service benefit payout if I don't sign this letter?


Yes they can block your EOS benefits is what they try to blackmail with mostly. Try speaking to a legal counsel for your legal options.


Legally are can they withhold this?


If they have not mentioned a no competition clause in your initial contract then i don't think they can. However, a legal counsel can give better advise.

In my case i refused to sign any agreement and had already flown out. My threatening them with legal action worked in my favour.

Ehtesham

You never mentioned about transferring to a competitor.
Have you asked them the purpose of signing this letter? You are already transferred, is it only for the purpose of formalities?
They CANT and again they CANT legally hold your rights after you are transferred.

khanmazher

I am not joining their competitors, however one of the business I the group of the new employer is competitor of the current employer.

However, the point being:
1: this was not in my original contract
2: this was not mentioned when I resigned
3: this was not mentioned when I got my iqama transferred.

Now my iqama is transferred and all formalities done. It's last 2 days of my notice period and they asked me this.

I don't want to close my career doors in future.

Please advise.

Thanks

alpha.one

Dont sign it. Tell them your contract is over, iqama transferred, all formalities done. If they insist then let them know that you took legal advice and you arent obligated to sign anything now. If they insist, take legal action go to MOL.

khanmazher

Okay! I am just worried about my end of service benefit cheque.

My iqama in the new company is ready printed.

dutti

Hello friends

Just a small point worth mentioning:
We expats were put under the impression that saudi law represses the expats in favor of employers. I have a severe experience from which I learnt that all are equal in from of the law, so don't just bend. If they are trying to do injustice to you, then you shouldn't accept, and each would take only his right: your EOS are yours, and they have got from you whatever they paid you for.
As our friends advised here: don't be afraid to consult a lawyer. AND: read carefully your new contract with your new company to avoid any such close, coz in the labor law: if the non-competition is written in your contract then they have the right to stop you from working with others.
Good luck and congrats for your new job.

nrifath

new Saudi Labor Law, as amended on 1/1/1437, the employer may require its employees to not to disclose his business secrets to anyone for if 10 years from the date of expiry of the contract. It means that the employee can work for competitor after two years of service, but he cannot disclose business secrets of the employer for 10 years (if provided in the contract and agreed upon by both parties)

Rodrigo Del Rosario

Hi is there anybody can share their thoughts about ny case. Im worried about the article 83 which is included int he contract that i renewed last 2019. And i finished my contract rn and waiting for transfer. Im an manager in a fastfood chain here in ksa and i have new job request in qiwa for a japanese restaurant. Please share your thoughts or idea about my case is it posible that i will not break the contract or the law? Thank you for any immediate response

Rodrigo Del Rosario

Hi is there anybody can share their thoughts about ny case. Im worried about the article 83 which is included int he contract that i renewed last 2019. And i finished my contract rn and waiting for transfer. Im an manager in a fastfood chain here in ksa and i have new job request in qiwa for a japanese restaurant. Please share your thoughts or idea about my case is it posible that i will not break the contract or the law? Thank you for any immediate response

Rodrigo Del Rosario

Hi is there anybody can share their thoughts about ny case. Im worried about the article 83 which is included int he contract that i renewed last 2019. And i finished my contract rn and waiting for transfer. Im an manager in a fastfood chain here in ksa and i have new job request in qiwa for a japanese restaurant. Please share your thoughts or idea about my case is it posible that i will not break the contract or the law? Thank you for any immediate response

Rodrigo Del Rosario

Hi is there anybody can share their thoughts about ny case. Im worried about the article 83 which is included int he contract that i renewed last 2019. And i finished my contract rn and waiting for transfer. Im an manager in a fastfood chain here in ksa and i have new job request in qiwa for a japanese restaurant. Please share your thoughts or idea about my case is it posible that i will not break the contract or the law? Thank you for any immediate response

Rodrigo Del Rosario

Hi is there anybody can share their thoughts about ny case. Im worried about the article 83 which is included int he contract that i renewed last 2019. And i finished my contract rn and waiting for transfer. Im an manager in a fastfood chain here in ksa and i have new job request in qiwa for a japanese restaurant. Please share your thoughts or idea about my case is it posible that i will not break the contract or the law? Thank you for any immediate response

mailmeksyed

Rodrigo Del Rosario wrote:

Hi is there anybody can share their thoughts about ny case. Im worried about the article 83 which is included int he contract that i renewed last 2019. And i finished my contract rn and waiting for transfer. Im an manager in a fastfood chain here in ksa and i have new job request in qiwa for a japanese restaurant. Please share your thoughts or idea about my case is it posible that i will not break the contract or the law? Thank you for any immediate response


Did your employer agree for transfer or release you locally?
Is the new employer is competitor to your present employer?

Rodrigo Del Rosario

Actually the business is under agency

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