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.
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1. Parties: Identifies the contracting parties, including their legal names, addresses, and company registration details
2. Background: Sets out the context and purpose of the agreement, including the business relationship between the parties
3. Definitions: Defines key terms used throughout the agreement, including 'Employee', 'Restricted Period', and 'Restricted Territory'
4. Non-Hire Obligations: Core restrictions regarding hiring or attempting to hire employees, including scope and specific prohibited activities
5. Duration: Specifies the time period during which the non-hire restrictions will remain in effect
6. Geographical Scope: Defines the territorial limits within which the restrictions apply
7. Exceptions: Lists permitted activities and circumstances where the restrictions do not apply
8. Remedies: Specifies the consequences of breach, including damages and injunctive relief
9. Representations and Warranties: Each party's confirmations regarding their authority and capacity to enter into the agreement
10. General Provisions: Standard contractual provisions including notices, amendments, governing law, and jurisdiction
1. Non-Solicitation Provisions: Additional restrictions on soliciting employees, useful when parties want broader protection beyond direct hiring
2. Recruitment Agency Provisions: Specific provisions regarding the use of recruitment agencies, necessary when parties regularly work with recruiters
3. Group Company Extensions: Extends protections to affiliated companies, relevant for corporate groups
4. Severance Provisions: Mechanisms for maintaining validity of remaining provisions if parts are found unenforceable
5. Dispute Resolution: Alternative dispute resolution procedures, recommended for high-value or complex relationships
6. Publicity and Confidentiality: Restrictions on discussing the agreement, important for sensitive business relationships
1. Schedule 1 - Protected Employees: List of employee categories or specific roles covered by the agreement
2. Schedule 2 - Restricted Territory: Detailed description or map of geographical areas where restrictions apply
3. Schedule 3 - Affiliated Companies: List of group companies covered by the agreement, if applicable
4. Appendix A - Notice Requirements: Detailed procedures for giving notices under the agreement
5. Appendix B - Damages Calculation: Methodology for calculating liquidated damages in case of breach
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