In Wipro Limited v. Beckman Coulter International, the contract between the parties prohibited them from soliciting each other’s employees. It was held that this part of the agreement was not affected by Section 27 of the Indian Contract Act as the restrictions placed on the parties, only prohibited them from enticing the other party’s employees to end their current employment and join them and did not place any prohibitions on the employees themselves.

2)if an employees directly applies for vacancy of competing company it would not be regarded as poaching . freedom and the prospects of the employees cannot be curtailed.

Hello,

A non-poaching agreement enforces guidelines to be followed in cases of lateral hiring. It must be ensured that it must be ensured that the Agreement does not ban lateral hiring outright. Further to see the validity of the No Poaching Agreement I have to see the agreement and will then have to see it as per provisions of the Contract Act and Competition Act.

Therefore, without going through the content of the no poaching agreement, no concrete advise can be given by me.

Regards

1. No poaching agreement does not have any legal binding effect in India as all agreement in restraint of trade is void.

2. So whether he applies or you offer the job, tit does makes no difference.

3. So forget poaching and do your work with all sincerity.

This agreement creates a firm arrangement between the parties to guarantee a reciprocal Non-poaching responsibility confirming not employing, partnering, contracting or engaging each other’s employees, agents, consultants, advisers, independent contractors, partners, officers, directors or anyone otherwise having an interest in operation or management of the other and provides for a comprehensive solution to confirm compliance of the conditions agreed in the terms of the agreement.

If these employees subsequently join direct competitors, it can result in substantial economic loss for the ex-employer. A non-poaching agreement therefore enforces guidelines to be followed in cases of lateral hiring.

The Indian Contract Act, 1872: Sec - 27

Holds any agreement restraining an individual from exercising a lawful profession, trade or business of any kind to be void. The Act considers restraint to be reasonable if it affords fair protection to the parties and does not interfere wit public interest. NPAs have the potential of restraining the rights (employment opportunities) of an entity (the employee) that is not party to the contract between two other entities (the employers).

Due regard must be given to the fact that Indian courts have repeatedly held restrictive covenants post termination of employment contract to be in violation of the Act. They may be held valid only in certain cases, but it is still a contentious matter.

In the above circumstances it would be better you take wise decision to avoid legal hassle due to this.

Hello,

As stated earlier to give a concrete advise I will have to go through the agreement. If an agreement has been disobeyed then the employee will be liable for breach of contract for which appropriate remedy can be seeked.

Regards

Employee voluntarily applying for job post advertisements would not be regarded as violation of anti poaching agreement

2) client would file suit for damages

If it was a general call given for employment and in that an en employee of rival nature was selected, it cannot be treated as poaching or soliciting.

If at all the aggrieved is filing any case agaisnt it on any grounds of no poaching agreement, he has to prove that this was solicited or poached with evidence and you can challenge the same at the time of dispute in the rial court.