Document background
A Non-Hire Agreement is essential in business relationships where companies collaborate closely while wanting to protect their human capital investments. This document is particularly relevant in the Indian business environment, where employee mobility is high and talent retention is crucial. It establishes mutual obligations between parties to refrain from hiring each other's employees, typically during the business relationship and for a specified period afterward. The agreement must be carefully drafted to comply with Indian law, particularly the Indian Contract Act, 1872, and constitutional provisions protecting freedom of trade. Key considerations include reasonable temporal and geographical limitations, specific employee categories covered, and clear enforcement mechanisms. The document is commonly used in vendor-client relationships, strategic partnerships, and during corporate transactions.
