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A non-poaching agreement refers to a contractual provision that prohibits an employee, for example, from poaching the employer’s customers, potential customers, suppliers, and/or business partners to work with another, competing company within a certain period after the termination of employment.
The Employment Contracts Act does not contain any provisions regarding non-poaching clauses, so they can be agreed upon with relative freedom. The validity and reasonableness of such a restriction are always assessed on a case-by-case basis.
