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Non Compete Agreement Hiring Employees for Indonesia

Non Compete Agreement Hiring Employees Template for Indonesia

A Non-Compete Agreement governed by Indonesian law that establishes post-employment restrictions between an employer and employee. The agreement outlines specific limitations on the employee's ability to work for competitors or establish competing businesses within defined geographic areas and time periods after employment termination. The document complies with Indonesian Labor Law (Law No. 13/2003) and relevant Ministry of Manpower regulations, ensuring a balance between protecting the employer's legitimate business interests and the employee's constitutional right to work. It includes provisions for consideration, scope of restrictions, and enforcement mechanisms while maintaining reasonableness under Indonesian legal standards.

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Non Compete Agreement Hiring Employees

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What is a Non Compete Agreement Hiring Employees?

The Non-Compete Agreement Hiring Employees is a crucial document for businesses operating in Indonesia who need to protect their legitimate business interests, confidential information, and competitive advantage. This agreement is typically implemented during the hiring process or as part of employment terms for key personnel who have access to sensitive information or strategic relationships. The document must comply with Indonesian employment laws, including Law No. 13/2003 and relevant Constitutional provisions regarding the right to work. It specifies restricted activities, geographic limitations, and time periods for post-employment competition restrictions, while providing appropriate consideration to ensure enforceability. The agreement is particularly important in industries with high employee mobility and competitive markets, requiring careful drafting to balance business protection with employee rights under Indonesian law.

What sections should be included in a Non Compete Agreement Hiring Employees?

1. Parties: Identification of the employer and employee, including complete legal names and addresses

2. Background: Context of the agreement, including the employee's role and reason for the non-compete provisions

3. Definitions: Key terms used in the agreement, including 'Competitive Business', 'Restricted Territory', and 'Restricted Period'

4. Scope of Employment: Description of employee's position, duties, and access to confidential information

5. Non-Compete Obligations: Specific restrictions on competitive activities, including duration and geographic scope

6. Duration and Territory: Clear specification of the time period and geographic area where restrictions apply

7. Consideration: Compensation or benefits provided in exchange for the non-compete obligations

8. Acknowledgments: Employee's confirmation of understanding and acceptance of restrictions

9. Reasonableness: Statements confirming the reasonable nature of restrictions under Indonesian law

10. Remedies: Legal remedies available in case of breach, including injunctive relief

11. Governing Law: Specification of Indonesian law as governing law and jurisdiction

12. Signature: Execution provisions and signature blocks

What sections are optional to include in a Non Compete Agreement Hiring Employees?

1. Confidentiality Obligations: Additional provisions regarding protection of confidential information, used when employee has access to sensitive data

2. Non-Solicitation: Restrictions on soliciting customers or employees, included when employee has significant client relationships

3. Garden Leave: Provisions for paid leave during notice period, used for senior positions

4. Intellectual Property: Protection of company IP and innovations, included for technical or creative roles

5. Severance Benefits: Additional compensation details, included when offering enhanced severance in exchange for restrictions

6. Return of Property: Requirements for returning company property, used when employee has access to physical or digital assets

7. Dispute Resolution: Alternative dispute resolution procedures, included for higher-level employees

8. Survival Clause: Specification of which provisions survive employment termination, used in complex agreements

What schedules should be included in a Non Compete Agreement Hiring Employees?

1. Schedule A - Restricted Activities: Detailed list of specific activities, businesses, and roles that are restricted

2. Schedule B - Restricted Territory: Detailed map or list of geographic areas where restrictions apply

3. Schedule C - Compensation Details: Breakdown of any special compensation or benefits provided as consideration

4. Appendix 1 - Confidential Information: Categories and examples of confidential information covered by the agreement

5. Appendix 2 - Key Customers: List of key customers or client relationships covered by non-solicitation provisions

6. Appendix 3 - Acknowledgment Form: Separate acknowledgment form for employee to sign confirming understanding of restrictions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions


























Clauses

























Relevant Industries

Technology

Banking and Finance

Manufacturing

Professional Services

Healthcare

Telecommunications

Retail and E-commerce

Pharmaceuticals

Energy and Resources

Consulting Services

Research and Development

Information Technology

Relevant Teams

Human Resources

Legal

Executive Leadership

Sales

Research and Development

Product Development

Business Development

Information Technology

Operations

Marketing

Client Services

Engineering

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Sales Director

Senior Software Engineer

Research Scientist

Product Manager

Business Development Manager

Senior Account Executive

Technical Lead

Regional Manager

Chief Financial Officer

Head of Operations

Marketing Director

Senior Consultant

Department Head

Principal Engineer

Key Account Manager

Research Director

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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