Adani Group signs ‘No Poaching Agreement’ with Reliance Industries, know what it means and what will be the effect
Adani-Ambani Group Agreement: The Adani Group of world’s third richest person Gautam Adani has entered into a ‘no poaching agreement’ with Mukesh Ambani’s Reliance Industries. This no poaching agreement means that employees of Reliance Group and Adani Group will not get placements in each other’s group companies. This can prevent the talent of both the group companies from being hired by each other.
The timing of the agreement is critical – competition between the two groups is increasing
According to a report by Business Insider, the agreement was brought in in May this year and will be applicable to all businesses of both the companies. Competition between the two groups is gradually increasing as the Adani Group is slowly gaining a foothold in businesses in which Reliance Group is already a big name. The biggest example of this is that last year with ‘Adani Petrochemicals Limited’, the Adani Group entered the petrochemicals sector, with Reliance Industries operating as one of the largest companies in the country for years.
Agreement reached to stop talent war
Apart from this, the Adani Group recently bid for 5G spectrum, making Reliance’s Reliance Jio Infocomm the largest company in the country. Actually, both the groups have made this agreement to stop the talent war between the companies.
employees will have trouble
According to reports, after this agreement, more than 3.80 lakh employees currently working in Mukesh Ambani-led Reliance companies will not be able to work in Adani group companies. Apart from this, Adani Group companies which have more than 23 thousand employees, they will not be able to work in any company of Mukesh Ambani.
The concept of ‘no poaching agreement’ came from the Sherman Act of 1890.
In 1890, a bill was passed by the US Parliament, known as the Sherman Act. Section-1, 2 of the Act calls for preventing the business of the states from being affected in any way. Later the form of this law changed according to the time and need.
In 2010, legislation related to the ‘no poaching agreement’ made headlines in the US when the US Department of Justice filed complaints against Silicon Valley companies such as Google, Adobe, Intel and Apple.
It has been said in the complaint that these companies do not employ each other’s employees among themselves. Along with this, the posts, salaries and facilities of the employees were also fixed.
Considering it a criminal case, the US Justice Department ordered an investigation. Although nothing legally found to have violated the rules, the investigation certainly found that it had a negative impact on the lives of millions of American workers.