Application of the Principle of Balance in Non-Competition Clauses in Indonesia Based on German Law
DOI:
https://doi.org/10.20527/.v11i2.320Keywords:
employment agreement, Non-competition clause, principle of balanceAbstract
The objectives of this study are, first, to identify and analyze the existence of the principle of balance in employment agreements containing non-competition clauses; and second, to determine fair and balanced non-competition regulation in indonesia based on german law.This study uses a normative legal research method with a doctrinal research type and is analytically prescriptive. The approaches employed are a legislative approach, a conceptual approach, and comparative law. The legal materials used consist of primary, secondary, and tertiary legal materials collected through literature review and then analyzed qualitatively. The results of the study indicate that, first, the existence of the principle of balance in the application of non-competition clauses in employment agreements is not sufficient simply by having a formal agreement; it is also measured by the substance of the clause. Non-competition clauses can only be maintained if they meet certain reasonable criteria. Second, for the application of non-competition clauses to reflect the principle of balance, clear and measurable legal regulations are required, as stipulated in German law. These arrangements need to contain written conditions, the existence of a legitimate business interest, limitations on the time period, area and scope of work, and the obligation to provide compensation to workers during the restriction period.
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