Non Compete Agreement Saudi Arabia

April 11, 2021

(ii) During the trial period, any party may terminate the contract without payment of compensation or the termination of benefits, while the return costs are the responsibility of the worker. In practice, employers can ensure that non-Saudi domestic workers meet non-competitive obligations by requiring foreign workers to transfer sponsorship to a new employer. All foreign workers must be sponsored to live and work in Saudi Arabia. They cannot transfer their sponsorship to another employer if they have not completed at least two years of continuous service with the existing employer and have received a letter from their existing employer in which they state that they do not object to the employee taking an alternative activity. To do this, there are solutions such as . B delays, although in most cases these restrictions must be relatively specific. Non-competition prohibitions are not intended to give an advantage to one party over the other, nor are they intended as a worker`s repression. This is preferably only a preventive measure implemented by the employer to secure its operations. Hello allI Having a non-compete clause in my contract, I was a GM of a large international company, my contract also says that in case of conflict with Saudi law, Saudi law replaces the contract. So here`s my question, I was fired by them for no reason and I heard that the Saudi non-compete law only if the worker supports the law supports the employer, but if it terminates you, the non-competition is not valid. Especially since I`m over 60, and that`s what I`ve done my whole career, what a company is going to hire a 60-year-old man into a new career. Who has experience of this situation? In fact, I received an offer from a competitor and I don`t want to get started and get into trouble.

This service often includes a local employment contract that may be required in the host country. Because GEO has a network of local experts and partners, it can ensure that employment contracts contain restrictive agreements that can be enforced. The GEO solution is ideal for small and medium-sized enterprises that may lack the resources to structure a task abroad and protect their business interests. If you did not mention a competition clause in your original contract, I do not think they can do that. However, a lawyer can advise better. In my case, I refused to sign an agreement and I had already been fired. My threat of legal action worked in my favour. Hello, I resigned from my current company and transferred my Iqama to the new company. I spend my last days of notice, today my HR gave me the order to sign a competition agreement so that I could not participate in the KSA competition for the next two years. This clause was not included in my contract, which I signed 5 years ago, it was not communicated to me when I resigned or during the transfer of Iqama.

I do not want to sign this, no one with legal expertise who can tell me what the impact is of not signing it. Thank you, restrictive alliances What types of restrictive alliances are recognized and applicable? Non-competition and confidentiality obligations are expressly recognized by labour law.

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