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Noncompete Agreement Template for Indonesia

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Key Requirements PROMPT example:

Noncompete Agreement

"I need a Noncompete Agreement for a senior software engineer in our Jakarta-based technology company, covering Java and Bali regions, that will take effect from March 2025 and restrict competitive activities for 12 months post-employment."

Document background
This Noncompete Agreement is essential for businesses operating in Indonesia seeking to protect their legitimate interests, trade secrets, and competitive advantage. The document is typically used when onboarding key employees or during employment termination processes, particularly for roles with access to sensitive information or significant customer relationships. It must be carefully drafted to balance the employer's protective interests with Indonesian constitutional rights and labor laws, including Law No. 13 of 2003 on Manpower. The agreement specifies restricted activities, geographical boundaries, and duration of restrictions, while providing appropriate consideration to ensure enforceability under Indonesian jurisdiction. Special attention is given to compliance with local competition laws and constitutional principles regarding the right to work.
Suggested Sections

1. Parties: Identification of the employer and employee/former employee, including full legal names, addresses, and any relevant registration numbers

2. Background: Context of the agreement, including the employment relationship and legitimate business interests being protected

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

4. Scope of Restrictions: Detailed description of prohibited competitive activities, including geographic scope and duration

5. Duration: Specific timeframe for which the noncompete obligations will remain in effect

6. Geographic Area: Precise definition of the territorial scope where the restrictions apply

7. Consideration: Details of the compensation or benefits provided in exchange for the noncompete obligations

8. Acknowledgments: Employee's confirmation of the reasonableness of restrictions and receipt of consideration

9. Remedies: Consequences of breach, including injunctive relief and damages

10. Severability: Provision for maintaining validity of remaining clauses if any part is found unenforceable

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

Optional Sections

1. Garden Leave: Optional provision for paid non-work period immediately after employment termination, used when immediate competition risk is high

2. International Scope: Additional provisions for multinational companies operating across multiple jurisdictions

3. Industry-Specific Restrictions: Special provisions related to specific industry regulations or requirements

4. Customer Non-Solicitation: Additional restrictions on approaching or dealing with customers, if not covered in main restrictions

5. Employee Non-Solicitation: Restrictions on hiring or soliciting other employees, if needed separately from general noncompete

6. Training Cost Reimbursement: Provisions for recovering training costs if employee leaves within specified period

7. Post-Termination Notification Requirements: Requirements for employee to inform new employers of restrictions

Suggested Schedules

1. Schedule 1 - Restricted Territory Map: Detailed map or list of geographical areas where restrictions apply

2. Schedule 2 - Competitive Businesses: Comprehensive list of competitors or types of businesses considered competitive

3. Schedule 3 - Consideration Details: Breakdown of compensation or benefits provided as consideration

4. Schedule 4 - Confidential Information Categories: Detailed categorization of protected confidential information

5. Appendix A - Employee's Position and Duties: Description of employee's role and responsibilities justifying the restrictions

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 | Serial Founder & Legal AI Author

Relevant legal definitions






























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Relevant Industries

Technology

Manufacturing

Professional Services

Financial Services

Healthcare

Pharmaceuticals

Telecommunications

Research and Development

Consumer Goods

Energy

Engineering

Biotechnology

Information Technology

Consulting

Digital Media

Relevant Teams

Legal

Human Resources

Executive Leadership

Sales

Research & Development

Product Development

Information Technology

Business Development

Operations

Finance

Marketing

Client Services

Engineering

Data Science

Strategy

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Senior Software Engineer

Sales Director

Research Scientist

Product Manager

Business Development Manager

Technical Lead

Senior Consultant

Account Executive

Regional Manager

Head of Research

Chief Financial Officer

Marketing Director

Operations Manager

Senior Data Analyst

Principal Engineer

Investment Manager

Clinical Director

Department Head

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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