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.
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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
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
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
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