Document background
The Agreement Not To Work For Competitor is essential for businesses operating in Indonesia seeking to protect their legitimate interests, trade secrets, and competitive advantage. This document becomes particularly crucial when employees have access to sensitive information, key client relationships, or specialized knowledge that could benefit competitors if immediately employed by them. The agreement must be drafted within the framework of Indonesian labor law, which generally takes a more conservative approach to post-employment restrictions compared to other jurisdictions. It typically includes specific provisions about duration, geographical scope, and the nature of restricted activities, all of which must be reasonable and proportionate to be enforceable under Indonesian law. The document is commonly used during employee onboarding or promotion to senior positions, ensuring proper protection of company interests while respecting employees' constitutional rights to earn a livelihood.
