Disclosing trade secrets can cost ex-employees their End of Service benefits

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8 years ago

Disclosing trade secrets can cost ex-employees their E-o-S benefits

Disclosing trade secrets can cost you your end of service benefits, a legal expert has said. The new residency law gives the employers the right not only to dismiss an employee in such a scenario but also do so without awarding any end of service benefits to such employees.

The new law allows expats to undertake administrative works in other companies, provided they are partners in the firm, says Hussam Tantawy, General Manager and Senior Legal Consultant at Al Sulaiti Law Firm.

The problem arises if both the companies are indulged in the same business, which can lead to conflict of interest. To address this issue, Article 43 of the law has stipulated that job contracts must include a condition that prevents the employee from working in another competing company and the ban continues for two years even after leaving the work.

If such as clause is not mentioned in the job contract, the employee is under no obligation to not take a job at a competing company, however, the employee would still remain accountable for divulging any trade secrets of his/her former employer. The law mandates that employees not violate the trade secrets of a company even after termination of services.

According to new information revealed by an official at the Ministry of Administrative Development, Labour and Social Affairs (MADLSA), “Companies in Qatar can stop their employees can prevent their employees from joining a rival company upon the lapse of their work contract.”

“An employer has the right under the new labour law to include such a clause in the job contract, the clause will play a limiting role, preventing employees from joining a rival company after the lapse of the contract”, the official said.

The clause cannot, however, be added to the job contract without letting the prospective employee know about its presence in the contract and can be enforced only if an employee after knowing about the clause in the contract proceeds to sign it. After signing such a contract employees cannot join a direct competitor of his/her employer after the completion of the job contract, however, indirect competitors do not come under the purview of this clause.

“If this clause is not a part of the job contact signed by an employee, then the employer cannot stop former staff member from joining a rival company,” the official added

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Credit: Qatar Day

URL:http://www.qatarday.com/news/local/disclosing-trade-secrets-can-cost-ex-employees-their-e-o-s/46813