The Non-Hire Agreement is a crucial document used in Indonesian business relationships where companies wish to protect their workforce from recruitment by business partners, clients, or competitors. It is particularly relevant in situations involving close business collaboration, joint ventures, or service arrangements where one party gains significant exposure to another's employees. The agreement must be carefully drafted to comply with Indonesian labor laws, including Law No. 13 of 2003 on Manpower, and competition regulations. Key considerations include the scope of restricted employees, duration of restrictions, and territorial limitations. The document must be in Indonesian or bilingual format and should include clear enforcement mechanisms while remaining reasonable and proportionate to be enforceable under Indonesian law.
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1. Parties: Identification of the contracting parties, including full legal names, registration numbers, and addresses
2. Background: Context of the agreement, relationship between parties, and purpose of the non-hire arrangement
3. Definitions: Key terms used in the agreement, including 'Restricted Employees', 'Restricted Period', and other relevant definitions
4. Non-Hire Obligations: Core provisions detailing the specific restrictions on hiring, attempting to hire, or soliciting employees
5. Duration and Territory: Temporal and geographical scope of the non-hire restrictions
6. Exceptions and Permitted Activities: Circumstances under which the non-hire restrictions do not apply
7. Confidentiality: Obligations regarding confidential information exchanged during the course of the relationship
8. Remedies: Specific remedies available in case of breach, including injunctive relief and damages
9. General Provisions: Standard clauses including notices, entire agreement, amendments, and governing law
10. Execution: Signature blocks and execution requirements, including requirement for Indonesian language version
1. Non-Solicitation of Clients: Additional restrictions on soliciting clients or customers, included when parties have shared client relationships
2. Consideration: Specific section detailing any consideration provided, required in jurisdictions where consideration is essential for enforcement
3. Monitoring and Compliance: Procedures for monitoring compliance with the agreement, included for complex relationships
4. Corporate Authority: Specific representations regarding corporate authority to enter agreement, included when dealing with large corporations
5. Independent Contractor Relationship: Clarification of relationship between parties, included when necessary to avoid mischaracterization
6. Insurance Requirements: Specific insurance obligations, included when relevant to the business relationship
7. Force Majeure: Provisions for unforeseen circumstances, included when long-term obligations exist
1. Schedule 1 - Restricted Employees: List of specific employees or employee categories covered by the non-hire restrictions
2. Schedule 2 - Affiliated Companies: List of affiliated companies to which the agreement extends
3. Schedule 3 - Territorial Scope: Detailed description of geographical areas covered by the agreement
4. Appendix A - Notice Requirements: Detailed procedures and contact information for required notices
5. Appendix B - Compliance Procedures: Specific procedures for ensuring compliance with the agreement
Relevant legal definitions
Clauses
Relevant Industries
Technology
Financial Services
Professional Services
Manufacturing
Healthcare
Telecommunications
Energy
Mining
Construction
Education
Retail
Hospitality
Relevant Teams
Human Resources
Legal
Executive Leadership
Procurement
Business Development
Compliance
Risk Management
Operations
Relevant Roles
Chief Executive Officer
Human Resources Director
Legal Counsel
Chief Operating Officer
Recruitment Manager
Business Development Director
Department Heads
Project Managers
Procurement Manager
Compliance Officer
Risk Manager
General Manager
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