Agreement between Gautam Adani-Mukesh Ambani!, could be trouble for employees

Gautam Adani and Mukesh Ambani, two of Asia’s richest billionaires, have signed a ‘no poaching’ agreement with each other. The no poaching agreement is also important because the Adani Group is now entering a business where Reliance Industries already dominates. Find out why there is staff churn.

Gautam Adani and Mukesh Ambani, two of Asia’s richest billionaires, have signed a ‘no poaching’ agreement with each other. Under this agreement, employees of Adani Group will not be able to work in Reliance Industries and Adani Group will not hire employees who have worked in Mukesh Ambani’s company. The agreement is effective from May this year and is for all trades between the two companies.

This information has been given in the report of Business Insider. According to the report, neither Adani Group nor Reliance Industries have yet responded to the queries related to this agreement.

What is the reason for the agreement?

The no-poaching agreement is also significant because now the Adani group is entering a business that is already dominated by Reliance Industries. Last year the Adani Group announced its entry into the petrochemicals sector with Adani Petrochemicals Limited. Reliance has a large presence in this sector.

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While the Adani group has taken the first step for entry in telecom as well. Adani recently bid for 5G spectrum. While in the green energy sector too, Adani and Ambani are being seen as rivals of each other. After Mukesh Ambani, the Adani Group has entered the media in this way.

How many employees are affected

The pact between Mukesh Ambani and Gautam Adani has blocked roads for millions of employees. Reliance has more than 3.80 lakh employees. While thousands of employees of Adani Soho will not be able to work in any company of Mukesh Ambani.

The currency of ‘no poaching’ agreement which was once not so popular in India is now slowly becoming popular. Due to talent war and salary hike, companies are insisting on no poaching agreement. Demand for employees or rising wages is a risk for companies. Especially in a sector where talent is scarce.