3 Year Non Compete Agreement Template for Indonesia

This 3 Year Non Compete Agreement is essential for businesses operating in Indonesia seeking to protect their legitimate business interests, confidential information, and competitive advantage. The document is typically used when onboarding senior executives, key technical personnel, or employees with access to sensitive business information. It must be drafted in accordance with Indonesian legal requirements, particularly the Indonesian Civil Code and Law No. 13 of 2003 on Manpower, while considering constitutional rights regarding freedom of work. The agreement includes specific provisions on restricted activities, geographical limitations, and consideration, balanced against employee rights and fair competition principles. It's particularly crucial for industries with significant intellectual property or proprietary business methods, requiring careful consideration of enforceability under Indonesian jurisdiction.

1. Parties: Identification of the employer/company and the employee/restricted party

2. Background: Context of the agreement, including the employee's role and access to confidential information

3. Definitions: Key terms including 'Restricted Business', 'Confidential Information', 'Territory', and 'Restricted Period'

4. Non-Compete Obligations: Core restrictions on competitive activities, including specific prohibited actions

5. Duration and Territory: The 3-year term and geographical scope of the restrictions

6. Consideration: The compensation or benefits provided in exchange for the non-compete obligations

7. Confidentiality Obligations: Requirements regarding the protection of confidential information

8. Non-Solicitation: Restrictions on soliciting employees, customers, or suppliers

9. Acknowledgments: Employee's confirmation of the reasonableness of restrictions

10. Remedies: Legal remedies available in case of breach, including injunctive relief

11. Severability: Provisions for maintaining validity if parts are found unenforceable

12. Governing Law and Jurisdiction: Specification of Indonesian law and relevant courts