By not letting employees move on to other companies and better their lives, it will have negative effect in hiring talented employees.
In the future if a potential and very talented employee is offered a job from MS and thinks that they will be locked in with the company forever and not be able to move on to a better offer from a rival, then that person may not join MS.
"By not letting employees move on to other companies and better their lives, it will have negative effect in hiring talented employees."
You are wrong and extremely niaeve about how key employees are limited by contract agreement if they choose to leave their job for a similar one with another company. That is the way it is with virtually every company; Otherwise less developed companies would steal company secrets from one an other by simply paying an individual more money. I'm surprised that Google would even try such a thing. What it shows is tha Google is a "shit" company.