ASIA: POST EMPLOYMENT RESTRAINTS | Employment notes
Recognised legitimate proprietary interests include trade secrets, confidential information, trade or business connections and the maintenance of a stable, trained workforce.
Recognised legitimate proprietary interests include trade secrets, confidential information, trade or business connections and the maintenance of a stable, trained workforce.
The non-compete period should not exceed two years.
Factors the court considers include duration, scope, the size and nature of employer’s business, the employee’s position and the employee’s salary.
Past supreme court judgments have reduced the duration of the restricted period to the extent the court deems it fair and reasonable. In some cases, the court deemed 2 years as being fair between the parties but has also reduced the duration of non-compete from 2 years to 1 year where the employee received a low salary or was in an operational level position.
While there are no specific provisions or restrictions under Indonesian law that prohibits an employee who has resigned from a company from working for a competitor, employees are entitled to equal rights and opportunities to choose, obtain or move to another job and earn a decent income.
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