The Non-Compete Employment Contract is essential for businesses operating in Indonesia seeking to protect their legitimate interests, trade secrets, and competitive advantage. This document is typically used when hiring employees who will have access to sensitive information, key client relationships, or proprietary technology. Under Indonesian law, such agreements must balance the employer's right to protect business interests with the employee's constitutional right to work. The contract includes specific provisions on restricted activities, geographical scope, duration, and compensation, ensuring compliance with Indonesian Labor Law (Law No. 13 of 2003) and related regulations. It's particularly crucial for senior positions, technical roles, and employees with access to confidential information or strategic planning.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Context of the employment relationship and reason for the non-compete agreement
3. Definitions: Key terms used in the agreement, including 'Confidential Information', 'Competing Business', 'Restricted Period', and 'Restricted Territory'
4. Scope of Employment: Description of employee's position, duties, and responsibilities
5. Term of Employment: Duration of employment and conditions for termination
6. Non-Compete Obligations: Specific restrictions on competitive activities, including duration and geographical scope
7. Confidentiality Obligations: Requirements regarding protection of company confidential information and trade secrets
8. Consideration: Compensation and benefits provided in exchange for the non-compete obligations
9. Acknowledgments: Employee's confirmation of understanding and acceptance of restrictions
10. Remedies: Consequences of breach and available legal remedies
11. Severability: Provision ensuring remainder of agreement remains valid if any part is found unenforceable
12. Governing Law: Specification of Indonesian law as governing law and jurisdiction
13. Execution: Signature blocks and execution requirements
1. Garden Leave: Provisions for paid leave during notice period to protect company interests, used for senior positions
2. Non-Solicitation: Additional restrictions on soliciting employees or customers, included for client-facing roles
3. Training and Development: Provisions regarding specialized training provided by employer, included when significant training investment is involved
4. International Operations: Additional provisions for employees involved in international business
5. Intellectual Property: Detailed IP provisions, included for technical or creative roles
6. Post-Employment Assistance: Requirements for transition assistance after employment ends, used for key positions
7. Alternative Dispute Resolution: Mediation or arbitration provisions, included for higher-level positions
1. Schedule A - Restricted Territory: Detailed description and/or maps of geographical areas covered by non-compete restrictions
2. Schedule B - Competing Businesses: List of specific competitors or types of businesses considered competitive
3. Schedule C - Compensation Details: Detailed breakdown of compensation package and benefits
4. Schedule D - Confidential Information: Specific categories and examples of confidential information covered
5. Appendix 1 - Employee's Position Description: Detailed job description and responsibilities
6. Appendix 2 - Company Policies: Relevant company policies incorporated by reference
Relevant legal definitions
Clauses
Relevant Industries
Technology
Manufacturing
Financial Services
Professional Services
Pharmaceuticals
Telecommunications
Consumer Goods
E-commerce
Healthcare
Energy
Mining
Research and Development
Consulting
Retail
Information Technology
Relevant Teams
Human Resources
Legal
Executive Leadership
Sales
Research & Development
Information Technology
Product Development
Business Development
Operations
Finance
Marketing
Engineering
Customer Success
Strategy
Relevant Roles
Chief Executive Officer
Chief Technology Officer
Senior Software Engineer
Sales Director
Research Scientist
Product Manager
Business Development Manager
Senior Financial Analyst
Technical Lead
Regional Manager
Head of Operations
Chief Marketing Officer
Senior Consultant
Data Scientist
Account Executive
Strategy Director
Solutions Architect
R&D Manager
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