Restrictive Covenant Agreement Employment Template for Indonesia

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Key Requirements PROMPT example:

Restrictive Covenant Agreement Employment

"I need a Restrictive Covenant Agreement Employment under Indonesian law for a senior software engineer in Jakarta, focusing on protecting our AI technology and client relationships, with a 12-month non-compete period starting from March 2025."

Document background
The Restrictive Covenant Agreement Employment is a crucial document used in Indonesian employment relationships to protect an employer's legitimate business interests, confidential information, and competitive advantage. This agreement becomes particularly important when onboarding employees who will have access to sensitive information, key customer relationships, or trade secrets. Governed by Indonesian law, including Law No. 13 of 2003 on Manpower and the Civil Code, the document must carefully balance the employer's protection with the employee's constitutional right to work. It typically includes restrictions on post-employment activities, confidentiality obligations, and non-solicitation provisions, all tailored to comply with Indonesian legal requirements regarding scope, duration, and geographic limitations.
Suggested Sections

1. Parties: Identifies the employer and employee entering into the agreement

2. Background: Establishes the context of the employment relationship and the need for restrictions

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

4. Confidentiality Obligations: Details the employee's obligations regarding confidential information during and after employment

5. Non-Competition Covenant: Specifies restrictions on working with competitors, including temporal and geographic scope

6. Non-Solicitation of Customers: Prohibits solicitation of company customers and business partners

7. Non-Solicitation of Employees: Restricts recruitment or hiring of company employees

8. Intellectual Property Rights: Addresses ownership and protection of intellectual property created during employment

9. Duration and Geographic Scope: Specifies the time period and geographical areas where restrictions apply

10. Acknowledgment of Reasonableness: Employee's acknowledgment that restrictions are reasonable and necessary

11. Remedies: Outlines available remedies for breach, including injunctive relief

12. Severability: Ensures remainder of agreement remains valid if any provision is found unenforceable

13. Governing Law and Jurisdiction: Specifies Indonesian law as governing law and relevant court jurisdiction

14. Entire Agreement: Confirms agreement represents complete understanding between parties

Optional Sections

1. Garden Leave: Provisions for paid leave during notice period to protect business interests, used for senior positions

2. International Scope: Additional provisions for employees with international responsibilities or access to global information

3. Electronic Data Protection: Specific provisions regarding protection of electronic data and digital assets, used when employee has access to sensitive digital information

4. Training Cost Reimbursement: Provisions requiring repayment of training costs upon early departure, used when significant training investment is involved

5. Post-Employment Cooperation: Requirements for cooperation in legal proceedings or investigations after employment, used for senior positions

6. Alternative Dispute Resolution: Provisions for mediation or arbitration before court proceedings, used for senior positions or complex arrangements

Suggested Schedules

1. Schedule 1: Restricted Territory: Detailed list of geographic areas where restrictions apply

2. Schedule 2: Restricted Businesses: Specific list of competitor businesses or business types

3. Schedule 3: Confidential Information: Detailed categorization of confidential information covered by the agreement

4. Schedule 4: Key Customers and Business Partners: List of specific customers and business partners covered by non-solicitation provisions

5. Appendix A: Employee's Position and Duties: Details of employee's role and responsibilities relevant to restrictions

6. Appendix B: Consideration: Details of any specific consideration provided for the restrictive covenants

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

Relevant legal definitions
Relevant Industries

Technology

Financial Services

Professional Services

Manufacturing

Pharmaceuticals

Telecommunications

Consumer Goods

Healthcare

Energy

Research and Development

Consulting

E-commerce

Media and Entertainment

Relevant Teams

Executive Leadership

Sales

Research & Development

Information Technology

Product Development

Human Resources

Finance

Operations

Marketing

Business Development

Customer Success

Legal

Engineering

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Senior Software Engineer

Sales Director

Business Development Manager

Research Scientist

Product Manager

Financial Controller

Operations Director

Human Resources Manager

Key Account Manager

Technical Lead

Regional Sales Manager

Senior Consultant

Data Scientist

Marketing Director

Industries
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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