Independent Contractor And Non Compete Template for Indonesia

The Independent Contractor and Non-Compete Agreement is essential for businesses operating in Indonesia that engage external professionals or service providers while protecting their business interests. This document is particularly relevant in today's growing gig economy and flexible workforce arrangements, where companies need to clearly establish non-employment relationships while safeguarding their confidential information and competitive position. The agreement ensures compliance with Indonesian legal requirements, including the Civil Code and competition laws, while providing comprehensive coverage of service terms, intellectual property rights, and post-engagement restrictions. It's specifically designed to address the unique aspects of Indonesian business law and practice, including local enforcement considerations for non-compete provisions and contractor relationships.

1. Parties: Identification of the contracting parties, including full legal names, addresses, and business registration details if applicable

2. Background: Context of the agreement, nature of the business relationship, and confirmation of independent contractor status

3. Definitions: Key terms used throughout the agreement, including but not limited to Confidential Information, Services, Work Product, and Competitive Activities

4. Scope of Services: Detailed description of services to be provided, deliverables, and performance standards

5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination by either party

6. Compensation and Payment Terms: Fee structure, payment schedule, expenses, and invoicing requirements

7. Independent Contractor Status: Clear statement of independent contractor relationship, tax responsibilities, and disclaimer of employment benefits

8. Intellectual Property Rights: Ownership of work product, assignment of rights, and pre-existing IP provisions

9. Confidentiality Obligations: Protection of confidential information, trade secrets, and customer data

10. Non-Compete Provisions: Restrictions on competitive activities during and after the agreement term

11. Non-Solicitation: Restrictions on soliciting clients, employees, or contractors

12. Representations and Warranties: Statements regarding capacity, authority, and ability to perform services

13. Indemnification: Mutual or unilateral indemnification obligations

14. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

15. General Provisions: Standard clauses including notices, amendments, assignment, and severability