The core concept of the Yellow-dog contract refers to the agreement that is signed between the employee and employer. In this contract, the employee is not allowed to form any kind of union in their career path. As per this act, the employer can take legal action against the organiser of the union who influences the employees to get in touch with them. Other than this, if the employee of the company is getting connected with other forms in the same sector is also prohibited as per this agreement. This enhances the clarity within the company and employees, which results in well-managed communication.
