Legal Protection of Companies for Violation of Non-Competition Clauses by Former Employees in Indonesia

Abstract

The development of the business world in Indonesia requires effective legal protection for the interests of companies, especially related to business confidentiality and healthy business competition. One form of such protection is the non-competition clause in the employment agreement. However, in practice, there are many violations by former employees who established similar businesses by utilizing previous company information. This study aims to analyze the legal force of non-competition clauses in Indonesian labor law as well as legal remedies that can be carried out by companies. The research method used is normative juridical with a legislative approach and case studies. The results of the study show that the non-competition clause still has weaknesses in its application because it has not been explicitly regulated in laws and regulations, but it can still be enforced through the principles of agreement and good faith. Legal remedies that can be carried out include civil lawsuits and criminal reports in certain cases.