Job change in Indonesia | How to prevent human resource leakage and confidential information leakage
In Indonesia, it is common to advance your career by changing jobs.
The biggest concern for companies is“Job change to competitors, human resource leakage, and confidential information leakage”Isn't it?
Let's consider whether there is any way to prevent the leakage of your company's know-how from a legal perspective and the actual situation on the ground.
Employment contracts and non-disclosure agreements (NDAs) include clauses prohibiting job transfers to competitors
The surest way to prevent information leaks due to job changes and human resource leaks in Indonesia is to include a clause prohibiting job transfers to competitors in employment contracts and non-disclosure agreements (NDA).
Although it is possible to make employees promise in writing not to take information with them, it is not realistic to limit the knowledge and skills imprinted in employees' minds.
Is an “agreement not to change jobs” to a competitor legally valid?
In Indonesia, is an agreement that prohibits a worker from changing jobs to a competitor even legally valid?
| in principle:freedom of career choice | The Indonesian Constitution is a labor"Freedom to choose a profession"Guaranteed. Even if there is an agreement between labor and management,for a lifetimeAgreements that prohibit employment in particular occupations or companies are legally prohibited.invalidIt is said that |
| exception:Agreement with limited duration and conditions | In recent years, a ``temporary ban on changing jobs'' for a limited period of time has begun to be accepted in order to prevent information leaks that threaten the survival of companies. example: ・Do not work for a competitor within 3 years of the end of the employment relationship ・Do not change jobs to direct competitors after leaving the company As the information held becomes updated and loses value over the course of several years, such reasonable restrictions are beginning to be considered legal in some cases. |
“Two loopholes” used by workers
In Indonesia, a major concern for companies that want to prevent the loss of human resources is the loss of workers' own skills, knowledge, and experience.
In particular, specialized knowledge in areas such as production technology, manufacturing, design, and sales is the one that competitors will buy at the highest price.
(In specialized manufacturing industries, it is not uncommon to see ``job changers'' who move around to other companies in the same industry and receive better treatment.)
If a worker agrees to a clause prohibiting changing jobs and later wants to change jobs to a competitor, what steps will they take to avoid the risk of lawsuits or being prevented from changing jobs?
In reality, the following two "loopholes" are mainly used.
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“Temporary registration” with another company: How to avoid changing jobs directly by asking a relative or acquaintance's company to let you join the company temporarily. After several months or years of excitement had cooled down, I changed jobs to my favorite competitor.
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Pattern of pretending to be independent/starting a business: A method in which workers themselves start their own businesses and enter into contracts with competitors in the form of ``subcontracting'' or ``business alliances.'' Some people continue to grow their companies, but many take advantage of the time difference and end up working for a competitor as a full-time employee.
The real solution: Creating a work environment that makes employees want to stay at this company forever
If you try to close a loophole, a new loophole will open up. It's a cat-and-mouse game, with no end in sight.
Of course, it is important to establish a legal line of defense through work regulations and employment contracts.
However, there are measures that have a higher success rate than forcing people to change jobs or binding them with rules.
it is,Creating a work environment (engagement) that makes employees want to stay at this company foreveris.
Remains unwavering even when competitors offer attractive benefits``Decent work'' ``A fair evaluation system'' ``An open company culture''Building this is the best way to prevent the loss of human resources due to job changes in Indonesia, and it can be said to be the best defense against increasing corporate value.
For legal and labor-related consultations, please leave it to our company, Keystone Consulting Indonesia.
We provide services tailored to your company.
[For inquiries, please contacthereFrom (free initial consultation!) ]
