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Non Compete Non Solicitation Agreement

Non Compete Non Solicitation Agreement Template for Indonesia

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Key Requirements PROMPT example:

Non Compete Non Solicitation Agreement

"I need a Non-Compete Non-Solicitation Agreement for our Jakarta-based software development company to protect our AI technology and client relationships, specifically for senior developers who have access to our proprietary algorithms and direct client contact, with restrictions lasting 12 months post-employment."

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Document background
The Non-Compete Non-Solicitation Agreement is essential for businesses operating in Indonesia who need to protect their legitimate interests, trade secrets, and customer relationships. This document is particularly relevant when employees have access to sensitive information, close customer relationships, or specialized knowledge that could be harmful if used by competitors. The agreement must comply with Indonesian labor laws, including Law No. 13 of 2003 on Manpower and related regulations, which generally favor employee rights. Restrictions must be reasonable in scope, duration, and geographic coverage to be enforceable under Indonesian law. The document typically includes detailed provisions on prohibited activities, temporal and geographical limitations, and consideration provided to the employee in exchange for these restrictions.
Suggested Sections

1. Parties: Identification of the parties entering into the agreement, including the employer/company and the employee/contractor

2. Background: Context of the agreement, including the nature of the employment/business relationship and reason for the restrictions

3. Definitions: Key terms used throughout the agreement, including 'Confidential Information', 'Competing Business', 'Territory', and 'Restricted Period'

4. Non-Competition Obligations: Detailed provisions regarding restrictions on competing activities, including scope, duration, and geographical limitations

5. Non-Solicitation of Customers: Restrictions on approaching or dealing with customers or potential customers of the company

6. Non-Solicitation of Employees: Restrictions on recruiting or attempting to recruit company employees

7. Duration and Territory: Specific timeframe and geographical scope of the restrictions

8. Consideration: The compensation or benefit provided in exchange for these restrictions

9. Acknowledgments: Employee's acknowledgment of the reasonableness of restrictions and receipt of consideration

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

11. General Provisions: Standard clauses including governing law, severability, and entire agreement

Optional Sections

1. Confidentiality Obligations: Additional provisions regarding the protection of confidential information, used when not covered by a separate NDA

2. Garden Leave: Provisions for paid leave during notice period, used for senior employees or when immediate competition risk exists

3. Post-Termination Notifications: Requirements to notify new employers of restrictions, used for senior positions

4. Independent Legal Advice: Confirmation of receiving independent legal advice, recommended for senior employees or complex restrictions

5. Monitoring and Compliance: Procedures for monitoring compliance with restrictions, used for high-risk situations

6. Training and Trade Secrets: Special provisions regarding company-provided training and trade secrets, used when significant company investment is involved

Suggested Schedules

1. Schedule 1 - Restricted Territory: Detailed map or list of geographical areas where restrictions apply

2. Schedule 2 - Competing Businesses: List of specific competitors or types of competing businesses

3. Schedule 3 - Protected Customers: List of specific customers or customer categories covered by non-solicitation provisions

4. Schedule 4 - Consideration Details: Detailed breakdown of any financial compensation or benefits provided as consideration

5. Appendix A - Acknowledgment Form: Form for periodic acknowledgment of ongoing compliance with 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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Affiliated Companies
Business
Competing Business
Confidential Information
Customer
Effective Date
Employee
Employer
Group
Intellectual Property Rights
Material Interest
Non-Compete Period
Non-Solicitation Period
Prospective Customer
Protected Business
Restricted Activities
Restricted Area
Restricted Period
Restricted Products/Services
Senior Employee
Supplier
Territory
Trade Secrets
Termination Date
Key Personnel
Business Relationship
Direct Competitor
Indirect Competitor
Material Connection
Professional Services
Relevant Industries

Technology

Professional Services

Financial Services

Healthcare

Manufacturing

Telecommunications

Pharmaceuticals

Consumer Goods

Energy

Consulting

Research and Development

E-commerce

Software Development

Banking

Insurance

Relevant Teams

Legal

Human Resources

Executive Leadership

Sales

Business Development

Research & Development

Product Development

Client Services

Operations

Information Technology

Finance

Marketing

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Senior Software Engineer

Sales Director

Business Development Manager

Research Scientist

Product Manager

Account Executive

Technical Lead

Marketing Director

Financial Controller

Operations Manager

Senior Consultant

Regional Manager

Head of Human Resources

Chief Financial Officer

Data Scientist

Customer Success Manager

Industries
Indonesian Civil Code (Kitab Undang-undang Hukum Perdata): Provides the fundamental principles of contract law, including requirements for valid agreements, contractual obligations, and remedies for breach of contract
Law No. 13 of 2003 on Manpower: The main employment law in Indonesia that governs employment relationships and provides protection for workers' rights, including restrictions on employment agreements
Law No. 5 of 1999 on Prohibition of Monopolistic Practices and Unfair Business Competition: Regulates business competition and contains provisions relevant to non-compete agreements to ensure they don't create unfair business practices
Minister of Manpower Regulation No. 150 of 2000: Provides guidelines on employment termination and worker rights, which may affect the enforceability of post-employment restrictions
Law No. 30 of 2000 on Trade Secrets: Protects confidential business information and trade secrets, providing legal basis for non-disclosure and related restrictive covenants
Constitution of Indonesia (UUD 1945), Article 27: Guarantees the right to work and earn a reasonable living, which must be considered when drafting restrictive covenants
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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