Any provision aiming to do such a thing, would violate the principal of the freedom to work. The non-compete provisions in the Civil Code can prevent a contracting party from undertaking a specific type of work within a certain period or area, however, such restriction should not be so broad as to include all types of work in every place and time. The contract between the plaintiff and the defendant provided that the defendant could not accept any job or connect with any business activities inside the Sultanate that was similar to, or competitive with, any of the operations conducted by the plaintiff. With regard to whether the defendant had breached the relevant clause of his employment contract, the courts held that he had not. Subsequently, the plaintiff sought to:Ī) revoke the contract of employment between the defendant and the litigant and thereby revoke the residence visa of the defendant andī) obligate the defendant and the litigant to together pay the plaintiff compensation in damages incurred as a result of the alleged illegal competition. The plaintiff submitted that the defendant joined another firm (the second litigant) prior to the end of the 12 month term and disclosed such business secrets to that litigant. It further stipulated that the employee would maintain the confidentiality of business secrets and the data/information related to the employer. In this case, the contract of employment stipulated that the employee (i.e., the defendant) would not assume any similar position in the Sultanate for 12 months after the termination of his service with the employer (i.e., the plaintiff). 426/2014) considered the issue of the validity of non-compete clauses. However, it is important to note that a restrictive covenant, such as a non-compete clause (in accordance with Article 661) will only be effective if it is reasonable, such that it is “restricted in time, place and type of work to the extent necessary for the protection of the legitimate interests of the employer”. gaining employment at a competitor of the employer or.Under the Civil Code, if an employee has knowledge of the “secrets” of his/her employer in terms of how the entity conducts its business, or if the employer is familiar with the employer’s clients, the employment contract may contain a clause to prevent the employee from doing the following after termination of the employment contract: Such provisions have been contemplated in the Civil Transactions Law issued by Sultani Decree 29/2013 (the “ Civil Code”). There are a number of reasons that an employer may wish to include a non-compete clause (otherwise known as a restrictive covenant) in an employment contract with an employee, for example, to protect goodwill and trade secrets.
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