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Restrictive Covenants and Trade Secrets in Employment Law: An International Survey – Kingdom of Saudi Arabia           Date: 2010-05-09

Article prepared by Crissy M. Solh and published in “Restrictive Covenants and Trade Secrets in Employment Law- An International Survey” Vol. II BNA Books Authored by the ABA Section of Labor & Employment Law

 

There is no applicable treaty or convention in the Kingdom of Saudi Arabia governing restrictive covenants.Public policy considerations are generally not industry-specific or topic-specific.

 

 

The Kingdom of Saudi Arabia follows Shariah, whereby all agreements must be made in accordance with the principals of Islamic law. What is more, Shariah allows for the general principal of freedom of contract. These principals together, therefore, make it possible for any set of parties to enter into an agreement with restrictive covenants as long as the terms and provisions do not violate the principals of Islamic Law.

 

Shariah is based on honesty and fairness for all parties; both the employer and the employee must be treated as having equal rights that shall be protected.

 

The basic principles do not change with development of technology or changes in the world economic climate.

The sources of law enforcing covenants are (1) Shariah (Islamic law), which is the law of the land and (2) the Labor Law, both of which are applied by the Commissions of Labor Disputes to resolve disputes

 

 

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