What is a Yellow Dog Contract?
Yellow Dog Contract is defined as a contract in which an employer and an employee agree that the employee will refrain from joining the company’s labour union. The term “yellow dog contract” is metaphorically used to describe the individual signing the agreement, implying that only a “yellow dog” would willingly sign away their constitutional rights for employment. By agreeing to this clause, the employee pledges not to work for a direct competitor in the future, which could potentially harm their current employer. The advantage of a yellow dog contract for the employer is that it provides legal recourse if the employees decide to revolt against the company.
Table of Content
- History of Yellow Dog Contract
- Example of Yellow Dog Contract
- Conclusion