5 Year Non Compete Agreement Template for Indonesia

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Key Requirements PROMPT example:

5 Year Non Compete Agreement

"Need a 5 Year Non Compete Agreement for our outgoing Chief Technology Officer who is leaving on March 1, 2025, with focus on protecting our AI technology development activities across Southeast Asia and preventing them from joining our three main competitors in Indonesia."

Document background
This document serves as a crucial business protection tool for companies operating in Indonesia who need to safeguard their confidential information, trade secrets, and business relationships. A 5 Year Non Compete Agreement is particularly relevant for senior executives, technical specialists, and key employees with access to sensitive business information or significant client relationships. The agreement must be carefully structured to comply with Indonesian labor laws, which generally favor employee rights, and must include adequate consideration to support the extended restriction period. The document typically addresses specific industry concerns, geographical limitations, and includes detailed provisions for enforcement under Indonesian jurisdiction. It is especially important in sectors with high employee mobility or where competitive advantage depends on proprietary knowledge.
Suggested Sections

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

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

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

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

5. Geographic Scope: Definition of the territorial limits of the non-compete restrictions

6. Duration: Specification of the 5-year term and any circumstances that might extend or reduce this period

7. Consideration: Details of compensation provided in exchange for the non-compete obligations

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

9. Exceptions: Permitted activities and circumstances where restrictions don't apply

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

11. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and choice of courts

12. Execution: Signature blocks and execution requirements

Optional Sections

1. Non-Solicitation Obligations: Additional restrictions on soliciting customers or employees, used when the employee had significant client contact or management responsibilities

2. Garden Leave: Provisions for paid leave during initial restriction period, typically used for senior executives

3. Severability: Provisions for partial enforcement if some restrictions are found invalid, important in jurisdictions where enforceability is uncertain

4. Return of Property: Requirements for returning company property and documents, included when the employee had access to physical or digital assets

5. Monitoring and Reporting: Requirements for the restricted party to report their activities, used in high-risk situations or for senior employees

Suggested Schedules

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

2. Schedule 2 - Restricted Activities: Comprehensive list of prohibited business activities and competitors

3. Schedule 3 - Consideration Payment Schedule: Details of payment amounts, dates, and methods for the non-compete consideration

4. Appendix A - Confidential Information: List of types of confidential information the employee had access to, supporting the need for restrictions

5. Appendix B - Former Position Details: Description of employee's former role and responsibilities, justifying the scope of restrictions

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 legal definitions
Relevant Industries

Technology

Manufacturing

Financial Services

Pharmaceuticals

Telecommunications

Professional Services

Energy

Consumer Goods

Healthcare

Research and Development

E-commerce

Mining and Resources

Relevant Teams

Legal

Executive Leadership

Research & Development

Sales

Product Development

Information Technology

Business Development

Operations

Finance

Human Resources

Strategic Planning

Client Services

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Senior Software Engineer

Research Director

Head of Sales

Chief Financial Officer

Product Development Manager

Senior Account Manager

Technical Lead

Regional Director

Business Development Manager

Chief Operations Officer

Head of Research

Senior Business Analyst

Managing Director

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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