The Salary Non-Disclosure Agreement is a crucial document used in Indonesian business operations to protect sensitive compensation information. It becomes necessary when employees have access to salary data, compensation structures, or benefits information that requires confidential handling. This agreement, governed by Indonesian law including Law No. 13 of 2003 on Manpower and relevant privacy regulations, establishes clear guidelines for maintaining salary confidentiality while ensuring compliance with local employment regulations. The document is particularly important in organizations with structured compensation systems, multiple employee levels, or where salary information could provide competitive advantages to other market players.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Context of the agreement, employment relationship, and purpose of the NDA
3. Definitions: Clear definitions of key terms including 'Confidential Information', 'Salary Information', 'Disclosure', and 'Permitted Recipients'
4. Scope of Confidential Information: Detailed description of what constitutes salary-related confidential information
5. Confidentiality Obligations: Core obligations regarding non-disclosure of salary information and related data
6. Permitted Disclosures: Circumstances under which salary information may be disclosed (e.g., to tax authorities, required by law)
7. Security Measures: Required measures to protect confidential salary information
8. Duration of Obligations: Time period for which the confidentiality obligations remain in effect
9. Consequences of Breach: Penalties and remedies available in case of violation
10. Return of Confidential Information: Requirements for returning or destroying confidential information upon termination
11. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes
1. Dispute Resolution: Optional section for specific dispute resolution procedures, such as mediation or arbitration
2. Third Party Rights: Section needed if other parties (like contractors or consultants) may have access to salary information
3. Digital Security Measures: Additional section if salary information is stored or transmitted electronically
4. International Transfer: Required for multinational companies or if salary information may be transferred outside Indonesia
5. Whistleblower Protection: Section protecting employees who report illegal activities to authorities
6. Survival Clause: Optional section specifying which provisions survive termination of employment
1. Schedule 1 - Categories of Confidential Information: Detailed list of specific types of salary-related information covered by the agreement
2. Schedule 2 - Authorized Recipients: List of roles or individuals authorized to access salary information
3. Schedule 3 - Security Protocols: Detailed procedures for handling and protecting confidential salary information
4. Appendix A - Acknowledgment Form: Form to be signed by employee acknowledging receipt and understanding of the NDA
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