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Non Disparagement Agreement Template for Indonesia

A Non-Disparagement Agreement under Indonesian law is a legally binding document that prohibits one or more parties from making negative or derogatory statements about the other party. The agreement must comply with Indonesian Civil Code requirements for contract formation and consider specific provisions under the Electronic Information and Transactions Law (ITE Law) regarding online communications. It typically includes detailed definitions of prohibited conduct, exceptions for legally required disclosures, and specific remedies for breach. The document is particularly important in employment terminations, business separations, and settlement agreements within the Indonesian legal framework.

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What is a Non Disparagement Agreement?

The Non-Disparagement Agreement is essential in Indonesian business and employment contexts where protecting reputation and maintaining professional relationships is crucial. This document is typically used during employment terminations, business partnership dissolutions, or as part of settlement agreements. It must align with Indonesian legal requirements, including the Civil Code, Criminal Code provisions on defamation, and the Electronic Information and Transactions Law. The agreement details specific prohibited actions, permitted exceptions, enforcement mechanisms, and remedies available under Indonesian law. It's particularly relevant in today's digital age where statements can be rapidly disseminated through social media and other electronic platforms.

What sections should be included in a Non Disparagement Agreement?

1. Parties: Identifies and defines all parties to the agreement, including their legal status and addresses

2. Background: Sets out the context and purpose of the agreement, including any relevant relationship between the parties

3. Definitions: Defines key terms including 'disparagement', 'confidential information', and other relevant terms

4. Scope of Non-Disparagement: Details what constitutes prohibited disparaging statements or conduct

5. Duration: Specifies how long the non-disparagement obligations remain in effect

6. Permitted Communications: Outlines exceptions for legally required disclosures or legitimate communications

7. Breach and Remedies: Specifies what constitutes a breach and the consequences, including available legal remedies

8. Governing Law and Jurisdiction: Specifies Indonesian law as governing law and identifies jurisdiction for dispute resolution

9. Notices: Details how formal communications between parties should be made and delivered

10. Entire Agreement: Confirms this document represents the complete agreement between parties on this matter

What sections are optional to include in a Non Disparagement Agreement?

1. Mutual Non-Disparagement: Used when both parties agree to reciprocal non-disparagement obligations

2. Social Media Guidelines: Include when specific social media restrictions need to be addressed

3. Confidentiality: Added when the agreement needs to include additional confidentiality obligations

4. Severability: Include to ensure remaining provisions survive if any part is found invalid

5. Assignment: Include if there's a need to address whether rights can be transferred to other parties

6. Post-Employment Obligations: Used when the agreement is related to employment termination

7. Third Party Rights: Include when the protection extends to related entities or individuals

8. Alternative Dispute Resolution: Added when parties prefer mediation or arbitration before court proceedings

What schedules should be included in a Non Disparagement Agreement?

1. Schedule 1: Prohibited Statements: List of specific statements or types of statements that are expressly prohibited

2. Schedule 2: Protected Persons: List of additional persons or entities protected by the non-disparagement obligations

3. Schedule 3: Communication Guidelines: Detailed guidelines for public communications, including social media usage

4. Appendix A: Acknowledgment Form: Form for parties to acknowledge understanding and acceptance of obligations

5. Appendix B: Approved Public Statements: Template or pre-approved statements for public communications about sensitive matters

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Cost

Free to use

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