Navigating Non-Poaching Agreements: How to Draft a Release Letter for Resigning Staff?

I have a staff member who is going to resign and will join our vendor, which has a non-poaching agreement between both companies. Due to the non-solicitation policy, she is requesting a release letter to accept her resignation and allow her to join the vendor. Do you have any ideas on how to draft the release letter?

If you have no poaching agreement, then you can write to the vendor to revoke the offer letter/employment of the employee. If you are still willing to provide the relieving letter, then issue the standard letter given to every employee who leaves. However, please note that encouraging this practice may result in increased attrition in the future, with more people moving to the vendor's company.

Note: If any employee has resigned and joined the vendor company, please instruct the vendor that the employee (who previously worked in your company) should not be assigned to your company for any transactions. This precaution is necessary as the employee is familiar with the processes and procedures, and there is a risk of malpractices.

Prevention is Better Than Cure

I agree with Shenbagarajan's response. If you give the release letter, then there will be other staff in the future who will also follow this and expect to get a release letter from the company. This is not good for your existing company. In case you are left with no other option, you can make sure that your vendor has a firm non-engagement clause for that employee to support your company. At the very least, it should be out of bounds for that employee for a minimum period of 6 months.

Best regards,
Venkat