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Protective Covenant Agreement

Protective Covenant Agreement Template for Indonesia

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Key Requirements PROMPT example:

Protective Covenant Agreement

"I need a Protective Covenant Agreement for a senior software developer joining our Jakarta-based technology company in March 2025, focusing on protecting our proprietary software code, client relationships, and preventing them from joining competitors in Southeast Asia for 12 months after employment ends."

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Document background
The Protective Covenant Agreement serves as a crucial legal instrument under Indonesian law for businesses seeking to protect their legitimate interests, trade secrets, and competitive position in the market. This document is typically used when engaging employees, contractors, or business partners who will have access to sensitive information or strategic relationships. It combines elements of confidentiality, non-competition, and non-solicitation provisions, all structured to comply with Indonesian legal requirements, particularly the Civil Code and Law No. 13 of 2003 on Manpower. The agreement is essential for safeguarding intellectual property, customer relationships, and business methodologies, while ensuring enforceability within the Indonesian legal framework. Special attention is given to balancing business protection with reasonable restrictions that courts will uphold.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including full legal names and addresses

2. Background: Context of the agreement, relationship between parties, and purpose of the protective covenants

3. Definitions: Detailed definitions of key terms used throughout the agreement, including 'Confidential Information', 'Trade Secrets', 'Intellectual Property', and 'Restricted Activities'

4. Duration and Term: Specified period for which the protective covenants will remain in effect

5. Confidentiality Obligations: Detailed provisions regarding the protection and non-disclosure of confidential information

6. Non-Competition Covenant: Restrictions on competitive activities, including geographic and temporal scope

7. Non-Solicitation Provisions: Restrictions on soliciting employees, customers, or business partners

8. Intellectual Property Protection: Provisions protecting intellectual property rights and preventing unauthorized use

9. Return of Materials: Requirements for returning company materials and information upon termination

10. Breach and Remedies: Consequences of breach and available remedies, including injunctive relief

11. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes

12. Execution: Signature blocks and execution requirements

Optional Sections

1. Assignment and Succession: Include when the agreement needs to address transferability of obligations or rights

2. Separation or Severability: Include when there's a need to ensure remaining provisions stay valid if some are found unenforceable

3. Training and Trade Secrets: Include when specific training or trade secrets are provided to the restricted party

4. Garden Leave Provisions: Include for senior employees where applicable under Indonesian law

5. International Operations: Include when the protected business operates across multiple jurisdictions

6. Digital Assets Protection: Include when dealing with digital intellectual property or online business assets

7. Third Party Rights: Include when protection needs to extend to affiliated companies or specific third parties

Suggested Schedules

1. Schedule A - Protected Information: Detailed list of confidential information and trade secrets covered by the agreement

2. Schedule B - Restricted Territory: Geographic areas where non-compete and non-solicitation provisions apply

3. Schedule C - Restricted Activities: Detailed description of prohibited business activities

4. Schedule D - Company Intellectual Property: Comprehensive list of protected intellectual property

5. Appendix 1 - Acknowledgment Form: Form for periodic reaffirmation of obligations under the agreement

6. Appendix 2 - Exit Procedures: Procedures for ensuring compliance upon termination of relationship

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

Technology

Manufacturing

Professional Services

Financial Services

Healthcare

Pharmaceuticals

Retail and E-commerce

Telecommunications

Research and Development

Energy

Consumer Goods

Education and Training

Consulting

Relevant Teams

Legal

Human Resources

Research & Development

Executive Leadership

Sales

Information Technology

Product Development

Operations

Finance

Marketing

Business Development

Engineering

Customer Relations

Strategic Planning

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Senior Software Developer

Research Director

Sales Director

Business Development Manager

Product Manager

Senior Consultant

Technical Lead

Human Resources Director

Financial Controller

Operations Manager

Marketing Director

Account Manager

Research Scientist

Senior Engineer

Department Head

Regional Manager

Industries
Indonesian Civil Code (Kitab Undang-undang Hukum Perdata): Provides the fundamental legal framework for contracts in Indonesia, including formation, validity, and enforcement of agreements
Law No. 13 of 2003 on Manpower: Governs employment relationships and provides regulations on employment agreements, including provisions relevant to protective covenants in employment contexts
Law No. 30 of 2000 on Trade Secrets: Regulates the protection of trade secrets and confidential information, crucial for protective covenant provisions related to confidentiality
Law No. 5 of 1999 on Anti-Monopoly and Unfair Business Competition: Relevant for ensuring non-compete clauses in protective covenants don't violate competition laws
Law No. 28 of 2014 on Copyright: Protects creative works and intellectual property, relevant for protective covenants involving intellectual property rights
Law No. 11 of 2008 on Electronic Information and Transactions: Relevant for protective covenants involving digital information and electronic confidentiality provisions
Minister of Manpower Regulation No. 150 of 2000: Provides guidelines on employment termination settlement, relevant for enforcement of protective covenants in employment contexts
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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