In today`s highly competitive business world, companies often enter into agreements with one another to ensure fair market competition. One such agreement is known as a „no poaching agreement.“

A no poaching agreement is a contract between two or more companies that prohibits them from soliciting or hiring each other`s employees. This type of agreement is especially common in industries where talent is scarce and highly sought after, such as technology, finance, and healthcare.

A no poaching agreement can benefit companies in several ways. By agreeing not to poach each other`s employees, companies can maintain a stable workforce and reduce employee turnover. This can help to improve overall productivity and profitability. Additionally, these agreements can help to build strong relationships between companies that might otherwise be rivals.

If your company is considering a no poaching agreement, it`s important to have a clear and concise contract in place. The following is a sample no poaching agreement that can be used as a starting point for drafting your own agreement:


1. Purpose. The purpose of this agreement is to prevent the solicitation or hiring of employees from each other`s companies. This agreement is intended to ensure fair competition and protect the interests of both parties.

2. Prohibition on Poaching. Neither party shall directly or indirectly solicit, hire, or attempt to solicit or hire any employee of the other party for the duration of this agreement.

3. Exceptions. This agreement shall not restrict either party from hiring an employee who has responded to a general recruitment advertisement or who has applied for a position on their own volition. Additionally, both parties shall be allowed to discuss potential career opportunities with an employee who initiates the discussion.

4. Duration. This agreement shall remain in effect for a period of [insert duration] from the date of signing. Either party may terminate this agreement at any time by providing written notice to the other party.

5. Remedies. In the event of a breach of this agreement, the non-breaching party may seek injunctive relief and any other appropriate remedies in a court of competent jurisdiction.

6. Governing Law. This agreement shall be governed by and construed in accordance with the laws of [insert state/country].

7. Entire Agreement. This agreement contains the entire understanding between the parties with respect to the subject matter hereof and supersedes all prior negotiations, understandings, and agreements between the parties.

The above sample agreement is a starting point for drafting your own no poaching agreement. It`s important to consult with legal counsel to ensure that your agreement complies with all applicable laws and regulations. Additionally, you should consider the unique needs and circumstances of your company when drafting your contract.