The Obligation of the Employee not to Compete with the Employer after Termination of the Contractual Relationship Comparative Study between Saudi and Jordian Law

Abstract

An employer has the right to agree with an employee not to compete with him after the termination of their contractual relationship when there is a legitimate interest that he seeks to protect. However, this requirement sometimes involves an infringement by the employer of the employee's right to work. The Saudi and Jordanian laws have sought to balance between protecting the legitimate interests of employers and the right of employees to work by enacting legal rules relating to non-competition by employees. They have established standards on the validity of non-competition clauses and require employees not to compete when such clauses are in place. Any breach of this obligation by an employee gives rise to liability towards the employer.  The study relied on a comparative analytical approach to analyze the legal rules relating to the non-competition of the employee with the employer in the Saudi system and Jordanian law, using primary and secondary sources and judicial rulings. The study reached a number of conclusions, the most important of which are: that failure to put a non-competition clause in writing renders it invalid in the Saudi system, unlike Jordanian law, which allows for a non-competition clause even if it is not in writing and can be proven by all means of proof; that an employee working for a competing employer is not considered competition for the employer in the Saudi system; On the other hand, the employee is prohibited from working for another employer, which is considered a form of competition under Jordanian law.