The Independent Contractor Non-Compete Agreement is essential for businesses operating in Indonesia that engage independent contractors with access to sensitive business information or strategic operations. This document addresses the unique aspects of Indonesian business law while protecting company interests through legally enforceable non-compete provisions. It's particularly relevant when contractors have access to confidential information, client relationships, or specialized knowledge that could be harmful to the company if used in competition. The agreement must comply with Indonesian Civil Code (KUHPerdata) requirements and competition laws while maintaining reasonable restrictions in terms of duration, geographic scope, and business activities. It includes provisions for establishing the independent contractor relationship, scope of work, compensation, and specific non-compete obligations.
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1. Parties: Identification of the contracting parties - the company and the independent contractor
2. Background: Context of the agreement, nature of the company's business, and the independent contractor's services
3. Definitions: Key terms including Confidential Information, Competitive Activities, Territory, and Restricted Period
4. Independent Contractor Relationship: Clear statement of independent contractor status and not employment relationship
5. Scope of Services: Description of services to be provided by the contractor
6. Term and Termination: Duration of the agreement and termination provisions
7. Non-Compete Obligations: Specific restrictions on competitive activities during and after the contract period
8. Non-Solicitation: Restrictions on soliciting clients, employees, or suppliers
9. Confidentiality: Protection of confidential information and trade secrets
10. Intellectual Property Rights: Ownership and transfer of intellectual property created during the engagement
11. Compensation: Payment terms and method for services rendered
12. Representations and Warranties: Statements of fact and promises by both parties
13. Governing Law and Jurisdiction: Specification of Indonesian law and relevant jurisdiction
14. General Provisions: Standard clauses including severability, entire agreement, and amendments
1. Garden Leave: Optional provision for paid non-compete period, used when higher level of protection is needed
2. Training and Support: Include when the contractor requires specific training or company resources
3. Insurance Requirements: Include when contractor needs to maintain specific insurance coverage
4. Dispute Resolution: Alternative dispute resolution mechanisms, included for more complex relationships
5. Force Majeure: Include for longer-term contracts or when services are critical to business operations
6. Assignment Rights: Include when either party may need to transfer rights or obligations
7. Audit Rights: Include when company needs right to audit contractor's compliance with agreement
1. Schedule A - Scope of Services: Detailed description of services to be provided by the contractor
2. Schedule B - Compensation: Detailed payment terms, rates, and payment schedule
3. Schedule C - Restricted Territory: Geographic scope of non-compete restrictions with specific details
4. Schedule D - Competitor List: List of specific competitors or types of competing businesses covered by non-compete
5. Appendix 1 - Confidential Information: Detailed description of what constitutes confidential information
6. Appendix 2 - Compliance Requirements: Specific regulatory or company compliance requirements
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