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Can non-compete clause be enforced if company is no longer existing?

I was forced to sign a 2-year non-compete clause when I left a free zone company a year back.

I've read that 'technically' this won't have any merit in court as the clause wasn't existing in the labour contract that I signed.

The company is now not existing. Would I be in trouble if I apply for a company that we previously coordinated/partnered with?

| 👁 674 | Posted April 18, 2018 | Share on Facebook | Twitter | Google+

| Modified: April 18, 2018 | Author:

2 Comments

krose_stitched 1 year ago

Thanks for clarifying!

ItsBlackRedGold 1 year ago

As you said, it's not enforceable, especially if it hasn't been certified from the MOHRE / free zone authority. Since that didn't happen, and the 2-year tenure is too long, it is safe to assume the wording would kill any remaining enforcibility. That said, you're signing the non-compete not with an individual but with the company. If the company does not exist anymore, there is no one who could prosecute you - when there's no one going to court. the judge won't go either.


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