Employment Contract Non Compete Template for Indonesia

The Employment Contract Non Compete is essential for businesses operating in Indonesia seeking to protect their legitimate interests while maintaining compliance with local labor laws. This document is typically used when hiring employees who will have access to sensitive information, key client relationships, or trade secrets. It combines standard employment terms required under Indonesian Law No. 13/2003 with carefully crafted non-compete provisions that respect both the employer's need for protection and the employee's rights under Indonesian law. The agreement addresses crucial aspects such as compensation, benefits, working conditions, and post-employment restrictions, while ensuring alignment with recent regulatory changes introduced by the Omnibus Law. This type of contract is particularly important in Indonesia's rapidly evolving business environment, where employee mobility and protection of business interests must be balanced against constitutional work rights.

1. Parties: Identification of the employer and employee, including their legal details and addresses

2. Background: Context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement, including definition of confidential information, competitive activities, and territory

4. Position and Duties: Employee's job title, role, responsibilities, and reporting structure

5. Term of Employment: Duration of employment (definite or indefinite term) and probationary period if applicable

6. Working Hours and Location: Standard working hours, overtime provisions, and primary work location

7. Compensation and Benefits: Salary, bonuses, allowances, and other benefits as per Indonesian labor law requirements

8. Leave Entitlements: Annual leave, sick leave, religious holiday leave, and other statutory leave provisions

9. Confidentiality Obligations: Protection of company's confidential information and trade secrets

10. Non-Compete Provisions: Restrictions on working with competitors or starting competing businesses, including scope, duration, and geographic limitations

11. Non-Solicitation: Restrictions on soliciting company's employees, customers, or suppliers

12. Intellectual Property Rights: Ownership and protection of IP created during employment

13. Termination: Grounds for termination, notice periods, and severance provisions

14. Governing Law and Dispute Resolution: Application of Indonesian law and dispute resolution mechanisms

15. General Provisions: Standard clauses including amendments, severability, and entire agreement