The Employee Covenant Agreement serves as a crucial legal instrument for protecting company interests in the Indonesian business environment. It is typically implemented at the commencement of employment or during significant role changes, establishing binding commitments regarding confidentiality, intellectual property rights, and competitive restrictions. The document is essential for companies operating in Indonesia who need to safeguard their proprietary information, customer relationships, and competitive advantage while ensuring compliance with Indonesian labor laws and regulations. This agreement is particularly vital in industries involving sensitive information, innovative technologies, or valuable client relationships, and should be carefully tailored to reflect both the specific needs of the employer and the requirements of Indonesian legal framework, including Law No. 13 of 2003 on Manpower and related regulations.
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1. Parties: Identification of the employer and employee, including their full legal names and addresses
2. Background: Context of the agreement, employment relationship, and purpose of the covenants
3. Definitions: Definitions of key terms used throughout the agreement, including 'Confidential Information', 'Intellectual Property', 'Competing Business', etc.
4. Confidentiality Obligations: Detailed provisions regarding the protection and non-disclosure of company confidential information
5. Intellectual Property Rights: Assignment and protection of IP created during employment, including inventions, works, and innovations
6. Non-Competition: Restrictions on working with competitors, subject to reasonable limitations under Indonesian law
7. Non-Solicitation: Restrictions on soliciting employees, customers, or suppliers
8. Return of Company Property: Obligations regarding the return of company property upon employment termination
9. Duration and Survival: Term of the agreement and which provisions survive employment termination
10. Breach and Remedies: Consequences of breach and available remedies
11. General Provisions: Standard clauses including governing law, amendments, severability, and entire agreement
1. Garden Leave: Provisions for paid leave during notice period, typically used for senior positions
2. International Travel: Additional obligations when traveling internationally with access to company information
3. Social Media Usage: Guidelines for social media behavior and protection of company reputation
4. Third Party Confidential Information: Handling of confidential information belonging to company clients or partners
5. Training Compensation: Provisions for repayment of training costs if employee leaves within specified period
6. Remote Work Obligations: Additional security and confidentiality obligations for remote working arrangements
1. Schedule 1 - Confidential Information: Detailed list of types of confidential information covered by the agreement
2. Schedule 2 - Restricted Activities: Specific list of prohibited competitive activities
3. Schedule 3 - Company Intellectual Property: Existing IP that employee may have access to or work with
4. Schedule 4 - Geographic Restrictions: Specific geographic areas covered by non-compete provisions
5. Schedule 5 - Company Equipment: List of company equipment provided to employee
6. Appendix A - Acknowledgment Form: Form for employee to acknowledge receipt and understanding of the agreement
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