1 Year Non Compete Agreement Template for Indonesia

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Key Requirements PROMPT example:

1 Year Non Compete Agreement

"I need a 1 Year Non Compete Agreement under Indonesian law for a new Chief Technology Officer starting March 2025, with specific focus on protecting our AI technology patents and preventing work with direct competitors in Southeast Asia."

Document background
This 1 Year Non-Compete Agreement is essential for businesses operating in Indonesia seeking to protect their legitimate business interests, trade secrets, and competitive advantage. The document is typically implemented for key employees who have access to sensitive information, strategic plans, or valuable client relationships. It must be drafted in compliance with Indonesian Labor Law and civil code requirements, ensuring a balance between company protection and employee rights. The agreement should be used when onboarding new employees or during employment contract modifications, particularly for senior positions or roles involving access to proprietary information. The one-year restriction period is generally considered reasonable under Indonesian law, provided the geographic scope and restricted activities are well-defined and proportionate to the business's legitimate interests.
Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Context of the agreement, employment relationship, and reason for the non-compete provisions

3. Definitions: Clear definitions of key terms including 'Competitive Business', 'Restricted Period', 'Restricted Territory', and 'Confidential Information'

4. Non-Compete Obligations: Detailed description of prohibited competitive activities during the 1-year period

5. Geographic Scope: Clear definition of the territorial limitations of the non-compete obligations

6. Duration: Specific terms about the 1-year restriction period and when it begins

7. Consideration: Details of any compensation or benefits provided in exchange for the non-compete agreement

8. Confidentiality Obligations: Provisions regarding the protection of confidential information and trade secrets

9. Acknowledgments: Employee's acknowledgment of the reasonableness of restrictions and receipt of consideration

10. Remedies: Available remedies in case of breach, including injunctive relief and damages

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

12. General Provisions: Standard clauses including severability, modification, and entire agreement provisions

Optional Sections

1. Garden Leave: Optional provision for paid non-work period during notice period - useful for senior positions

2. Non-Solicitation: Additional restrictions on soliciting employees or customers - recommended for client-facing roles

3. Training Compensation: Provisions regarding repayment of training costs - relevant if significant training investment was made

4. Industry-Specific Restrictions: Additional restrictions specific to particular industries or professions

5. International Scope: Additional provisions for employees with international responsibilities or multi-jurisdiction restrictions

6. Return of Property: Detailed provisions about returning company property - important for employees with access to sensitive materials

Suggested Schedules

1. Schedule A - Restricted Territory: Detailed map or list of geographical areas covered by the non-compete restrictions

2. Schedule B - Competitive Businesses: Comprehensive list of businesses, activities, or roles considered competitive

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

4. Appendix 1 - Confidential Information: Detailed list of types of confidential information covered by the agreement

5. Appendix 2 - Employee's Current Role: Description of employee's current position and responsibilities for context

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries

Technology

Financial Services

Professional Services

Manufacturing

Pharmaceuticals

Telecommunications

Consumer Goods

Healthcare

Energy

E-commerce

Consulting

Research and Development

Relevant Teams

Legal

Executive Leadership

Sales

Research & Development

Product Development

Business Development

Client Services

Operations

Finance

Human Resources

Information Technology

Marketing

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Sales Director

Senior Software Engineer

Research Scientist

Product Manager

Business Development Manager

Account Executive

Senior Consultant

Regional Manager

Technical Lead

Head of Operations

Chief Financial Officer

Marketing Director

Head of Human Resources

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

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