Hi,
It is an agreement between two or more parties/companies that they will not indulge in poaching activities from the other parties/companies, who have mutually agreed to do so or not hire employees coming from those companies in such an agreement.
This kind of agreement is rare in India and does not valid or enforceable under law but since it is between two or more parties, the parties to agreement have full authority to do so till the moment they want to stick to it or it does'nt adversly affect their business interest.
I think the motto for such an agreement is just to stop the employees from switching one competitor to other, where there are few players/competitors but limited skilled manpower is available. In such a scenario, the employees switch quite often and ask for phenominal hikes as the requirment is crucial.
Such an agreement was recently proposed at IGI Airport, New Delhi for the retailers operating at Terminal-3.
The copy of the same is attached herewith for reference.
Regards
Vikas