It is an agreement between two or more parties/companies that they will not engage 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 is not valid or enforceable under law. However, since it is between two or more parties, the parties to the agreement have full authority to do so until the moment they want to stick to it or it doesn't adversely affect their business interests.
I think the motive for such an agreement is just to prevent employees from switching from one competitor to another, especially in scenarios where there are few players/competitors but limited skilled manpower is available. In such a scenario, employees switch quite often and ask for phenomenal hikes as the requirement 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