To Poach Or Not To Poach – Potential Risks From A Competition Law Standpoint

In a free market, businesses compete to offer the best range of products at the most competitive prices. Similarly, competition among employers to recruit employees leads to better terms and increased opportunities for employees. A non-poaching agreement is an arrangement/ understanding/ agreement between employers which prevents them from hiring each other's employees.

Unlike general industry-wide contracts, where the employees are aware about non-compete or non-solicitation clauses, in a non-poaching agreement, the employees are unaware of the agreement between their current employer and potential employer whereby they have agreed not to hire or pursue each other's employees. Employers who compete to hire employees are deemed to be competitors in the relevant labor/ employment market.