Salon Non Compete Agreement Template for Indonesia

The Salon Non-Compete Agreement is essential for protecting salon businesses' legitimate interests in the competitive Indonesian beauty industry. This document is typically used when hiring skilled beauty professionals who will have access to client information, proprietary techniques, and trade secrets. It should be implemented in compliance with Indonesian Labor Law (Law No. 13 of 2003) and Competition Law (Law No. 5 of 1999), ensuring that restrictions are reasonable and enforceable. The agreement is particularly relevant for high-end salons, specialized beauty service providers, and salon chains where client relationships and proprietary techniques represent significant business value. The document typically includes specific provisions about geographical limitations, time restrictions, and the scope of prohibited competitive activities, while being careful not to unduly restrict an individual's right to earn a living.

1. Parties: Identification of the salon owner/company and the employee/contractor subject to the non-compete restrictions

2. Background: Context of the agreement, including the nature of the salon business and the employee's role

3. Definitions: Key terms including 'Competitive Business', 'Restricted Period', 'Restricted Area', 'Confidential Information', and 'Salon Services'

4. Scope of Employment: Description of the employee's role, responsibilities, and access to confidential information

5. Non-Compete Obligations: Specific restrictions on competitive activities during and after employment

6. Geographic Restrictions: Definition of the geographical area where competitive activities are restricted

7. Time Period: Duration of the non-compete obligations after employment termination

8. Confidentiality Obligations: Protection of trade secrets, client lists, and proprietary techniques

9. Non-Solicitation: Restrictions on soliciting clients, employees, or suppliers

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

11. Remedies: Legal remedies available in case of breach, including injunctive relief

12. Governing Law: Specification of Indonesian law as governing law and jurisdiction

13. General Provisions: Standard clauses including severability, modification, and entire agreement