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Non Solicitation Agreement Between Two Companies

Non Solicitation Agreement Between Two Companies Template for Indonesia

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Key Requirements PROMPT example:

Non Solicitation Agreement Between Two Companies

"I need a Non-Solicitation Agreement Between Two Companies for my Indonesian software development company entering into a joint venture with a Singapore-based tech firm, specifically protecting our senior developers and key clients across Southeast Asia, to be effective from March 2025."

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Document background
A Non-Solicitation Agreement Between Two Companies is essential in business relationships where companies need to protect their human resources, customer relationships, and supplier networks from solicitation by their business partners. This document is particularly relevant in Indonesia's dynamic business environment, where employee mobility and business relationship protection are crucial concerns. The agreement must comply with Indonesian legal requirements, including the Civil Code (KUHPer), Labor Law No. 13 of 2003, and Competition Law No. 5 of 1999. It's commonly used when companies enter into business partnerships, joint ventures, or vendor relationships where they may gain access to each other's key employees, customers, or suppliers. The agreement typically includes specific provisions about duration, geographic scope, and categories of protected relationships, while ensuring it doesn't unreasonably restrict constitutional rights to work and conduct business.
Suggested Sections

1. Parties: Identifies and provides full legal details of both companies entering into the agreement

2. Background: Sets out the context and business relationship between the parties and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement, including 'Confidential Information', 'Restricted Period', 'Covered Employees', etc.

4. Non-Solicitation Obligations: Core section detailing the specific prohibitions on solicitation of employees, customers, and/or suppliers

5. Duration: Specifies the time period during which the non-solicitation obligations will remain in effect

6. Geographic Scope: Defines the territorial limits within which the agreement applies

7. Exceptions and Permitted Activities: Lists specific circumstances or activities that are exempt from the non-solicitation obligations

8. Remedies: Outlines the consequences of breach and available legal remedies

9. Governing Law and Jurisdiction: Specifies Indonesian law as governing law and sets out jurisdiction for dispute resolution

10. General Provisions: Standard contractual provisions including severability, entire agreement, and amendments

Optional Sections

1. Mutual Non-Disclosure: Include when parties need to exchange confidential information as part of their business relationship

2. Non-Compete Provisions: Add when broader protection against competition is needed, subject to Indonesian competition law restrictions

3. Customer Protection: Include specific provisions about customer non-solicitation when the agreement needs to protect customer relationships

4. Supplier Protection: Add when the agreement needs to specifically protect supplier relationships

5. Dispute Resolution: Include detailed alternative dispute resolution procedures when parties prefer arbitration or mediation

6. Survival Clause: Add when certain obligations need to continue after termination of the agreement

7. Notice Requirements: Include detailed notice procedures when formal communication processes are important

Suggested Schedules

1. Schedule A - Restricted Employees: List of employee categories or positions covered by the non-solicitation provisions

2. Schedule B - Protected Customers: List of specific customers or customer categories protected under the agreement

3. Schedule C - Protected Suppliers: List of specific suppliers or supplier categories protected under the agreement

4. Schedule D - Territories: Detailed description of geographic territories where the agreement applies

5. Appendix 1 - Notification Format: Template for required notices under the agreement

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 Industries

Information Technology

Professional Services

Financial Services

Healthcare

Manufacturing

Education

Telecommunications

Consulting

Research & Development

Digital Services

Engineering

Biotechnology

Relevant Teams

Legal

Human Resources

Executive Leadership

Compliance

Business Development

Commercial Operations

Procurement

Risk Management

Corporate Affairs

Administration

Relevant Roles

Chief Executive Officer

Human Resources Director

Legal Counsel

Chief Legal Officer

Business Development Manager

Procurement Manager

Commercial Director

Operations Manager

Managing Director

Compliance Officer

Human Resources Manager

Contract Manager

General Counsel

Corporate Secretary

Industries
Indonesian Civil Code (Kitab Undang-undang Hukum Perdata): Provides the fundamental framework for contract formation, validity, and enforcement in Indonesia. Articles 1313-1351 specifically deal with the requirements for valid agreements.
Law No. 13 of 2003 on Manpower: Governs employment relationships and workers' rights in Indonesia. Relevant for ensuring the non-solicitation provisions don't violate employee rights to seek employment.
Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition: Ensures that the non-solicitation agreement doesn't create unfair business practices or restrict competition in an anti-competitive manner.
Indonesian Constitution Article 27: Guarantees the right to work and earn a reasonable living. Non-solicitation provisions must not unreasonably restrict these constitutional rights.
Law No. 30 of 2000 on Trade Secrets: Protects confidential business information and can be relevant when the non-solicitation agreement includes provisions about protecting trade secrets.
Government Regulation No. 35 of 2021: Implements provisions of the Job Creation Law (Omnibus Law) regarding employment, including aspects of worker mobility and employment relationships.
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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