The Agreement Not To Work For Competitor is essential for businesses operating in Indonesia seeking to protect their legitimate interests, trade secrets, and competitive advantage. This document becomes particularly crucial when employees have access to sensitive information, key client relationships, or specialized knowledge that could benefit competitors if immediately employed by them. The agreement must be drafted within the framework of Indonesian labor law, which generally takes a more conservative approach to post-employment restrictions compared to other jurisdictions. It typically includes specific provisions about duration, geographical scope, and the nature of restricted activities, all of which must be reasonable and proportionate to be enforceable under Indonesian law. The document is commonly used during employee onboarding or promotion to senior positions, ensuring proper protection of company interests while respecting employees' constitutional rights to earn a livelihood.
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1. Parties: Identifies the contracting parties - typically the employer and the employee
2. Background: Establishes the context of the agreement, including the employee's role and access to confidential information
3. Definitions: Defines key terms used in the agreement, including 'Competitive Business', 'Restricted Period', and 'Restricted Territory'
4. Non-Compete Obligations: Details the specific restrictions on working for competitors, including scope, duration, and geographic limitations
5. Confidentiality Obligations: Specifies the employee's obligations regarding confidential information and trade secrets
6. Duration and Geographic Scope: Clearly defines the time period and geographical area where the restrictions apply
7. Legitimate Business Interests: Establishes the company's legitimate business interests being protected by the agreement
8. Acknowledgments: Employee's acknowledgment of the reasonableness of restrictions and receipt of adequate consideration
9. Remedies: Specifies available remedies in case of breach, including injunctive relief and damages
10. Governing Law and Jurisdiction: Specifies Indonesian law as governing law and determines jurisdiction for disputes
11. Entire Agreement: Standard clause confirming this document represents the entire agreement between parties
1. Garden Leave: Optional provision for paid leave during notice period to prevent immediate competition
2. Severance Payment: Include when specific compensation is offered in exchange for non-compete obligations
3. Return of Company Property: Detailed section about returning company assets, needed for senior positions
4. Non-Solicitation: Additional restrictions on soliciting employees or customers, if required
5. Training Cost Recovery: Include when significant training investment has been made in the employee
6. Survival Clause: Specifies which obligations survive termination of employment
7. Severability: Allows rest of agreement to remain valid if certain provisions are found unenforceable
1. Schedule 1: Restricted Competitors: List of specific competitors or types of competing businesses
2. Schedule 2: Restricted Territory: Detailed description or map of geographical restrictions
3. Schedule 3: Confidential Information: Detailed list of types of confidential information covered
4. Appendix A: Consideration Details: Details of any additional compensation or benefits provided in exchange for the restrictions
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