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A non-recruitment clause clause refers to a condition under which an employee may not, after the termination of employment, recruit employees of their former employer to work for themselves or for another company. Sometimes, in addition to direct recruitment, a non-recruitment clause prohibits any form of enticement of employees to leave their former employer’s service.
The Employment Contracts Act does not contain provisions regarding non-recruitment clauses, so they can be agreed upon with relative freedom. The validity and reasonableness of the restriction are always assessed on a case-by-case basis.
