The Conflict of Trade Secret Protection and Workers’ Rights in Non-Competition Clauses
Abstract
This study aims to scrutinize the Non-Competition Clauses in employment contracts as a manifestation of trade secrets and understand how these clauses impact an individual’s right to choose employment. This study uses normative legal research with the statute and comparative approaches. The collected legal material is then qualitatively analyzed to describe the problem and answer study purposes. The results show that including Non-Competition Clauses in employment contracts by employers is a strategic measure to protect trade secrets from competitors. However, every contract must fulfill the requirements for the agreement’s validity subjectively and objectively. Non-Competition Clauses can potentially conflict with workers’ rights as regulated in Article 28D section (2) of the 1945 Constitution, Article 38 section (2) of Law Number 39 of 1999, and Article 31 of Law Number 13 of 2003, thereby violating the objective requirements of employment contracts based on Article 52 section (1) point d of Law Number 13 of 2003. Therefore, it recommended that relevant parties review and evaluate the implementation of Non-Competition Clauses in employment contracts in Indonesia. Before incorporating this clause into the employment contract, employers must consider the agreement’s validity requirements and workers’ rights. Furthermore, the employment contract should further explain the definition and scope of the Non-Competition Clause to avoid different interpretations. Meanwhile, the Government is recommended to create clear regulations concerning the legitimacy of Non-Competition Clauses in employment contracts. These regulations must consider the balance between protecting trade secrets and workers’ rights to employment and income. Lastly, Courts should prioritize protecting workers’ rights in resolving disputes related to breaches of the Non-Competition Clause, especially if employers cannot prove the workers have violated the company’s trade secrets.
Downloads
References
The 1945 Constitution of the Republic of Indonesia. https://www.dpr.go.id/jdih/uu1945
The 2022 Florida Statutes. http://www.leg.state.fl.us/statutes/
Afdal, W., & Purnamasari, W. (2021). Kajian Hukum Non-Competition Clause dalam Perjanjian Kerja Menurut Perspektif Hukum Indonesia. Jurnal Komunikasi Hukum, 7(2), 828-842.
Alkad, A. F., & Mulyaningrum, E. R. (2022). Aspek Hukum Non-Competition Clause dalam Perjanjian Kerja. Jurnal Ilmiah Universitas Batanghari Jambi, 22(3), 2045-2049. http://dx.doi.org/10.33087/jiubj.v22i3.2615
The California Business and Professions Code. https://leginfo.legislature.ca.gov/faces/codesTOCSelected.xhtml?tocCode=BPC&tocTitle=+Business+and+Professions+Code+-+BPC
Colonial Regulations, Staatsblad Number 23 of 1847 on the Burgerlijk Wetboek voor Indonesie/the Civil Code. https://jdih.mahkamahagung.go.id/legal-product/kitab-undang-undang-hukum-perdata/detail
Court of Appeal for Ontario. (2022, 17 May). M & P Drug Mart Inc. v. Norton (Docket: C69818). https://coadecisions.ontariocourts.ca/coa/coa/en/20616/1/document.do
Decision of the District Court of Central Jakarta Number 106/Pdt.Sus-PHI/2019/PN Jkt.Pst. https://putusan3.mahkamahagung.go.id/direktori/putusan/adc15ddfb079e0a7f3df4d9ad18a8c60.html
Government Regulation in Lieu of Law of the Republic of Indonesia Number 2 of 2022 on Job Creation (State Gazette of the Republic of Indonesia of 2022 Number 238, Supplement to the State Gazette of the Republic of Indonesia Number 6841). https://peraturan.go.id/id/perppu-no-2-tahun-2022
Hanni, N. (2019). Exclusive Distribution and Non-Compete Clause in Trade: Transnational Agreements in European Union and United States. Udayana Journal of Law and Culture, 3(2), 141-163. https://doi.org/10.24843/UJLC.2019.v03.i02.p02
Hasmalawati, N., & Hasanati, N. (2017). Pengaruh Kualitas Kehidupan Kerja dan Motivasi Kerja Terhadap Kinerja Karyawan. Mediapsi, 3(2), 1-9. https://doi.org/10.21776/ub.mps.2017.003.02.1
Khairani, K., & Gettari, T. R. (2023). Perlindungan Pekerja Ditinjau Dari Konsep Hubungan Kerja Pasca Berlakunya Undang-Undang Cipta Kerja. Unes Journal of Swara Justisia, 7(2), 709-721. https://doi.org/10.31933/ujsj.v7i2.372
Law of the Republic of Indonesia Number 39 of 1999 on Human Rights (State Gazette of the Republic of Indonesia of 1999 Number 165, Supplement to the State Gazette of the Republic of Indonesia Number 3886). https://www.dpr.go.id/jdih/index/id/440
Law of the Republic of Indonesia Number 30 of 2000 on Trade Secret (State Gazette of the Republic of Indonesia of 2000 Number 242, Supplement to the State Gazette of the Republic of Indonesia Number 4044). https://www.dpr.go.id/jdih/index/id/394
Law of the Republic of Indonesia Number 13 of 2003 on Manpower (State Gazette of the Republic of Indonesia of 2003 Number 39, Supplement to the State Gazette of the Republic of Indonesia Number 4279). https://www.dpr.go.id/jdih/index/id/196
Law of the Republic of Indonesia Number 6 of 2023 on Enactment of Government Regulation In Lieu of Law Number 2 of 2022 on Job Creation Into Law (State Gazette of the Republic of Indonesia of 2023 Number 41, Supplement to the State Gazette of the Republic of Indonesia Number 6856). https://www.dpr.go.id/jdih/index/id/1825
Lega, F. S. (2015). Martabat Manusia dalam Perspektif Filsafat Moral Immanuel Kant. Jurnal Pendidikan dan Kebudayaan Missio, 7(1), 83-101. https://doi.org/10.36928/jpkm.v7i1.24
Mafulah, H. (2020). Pengecualian Perjanjian yang Berkaitan Paten dan Lisensinya dalam Pengawasan Persaingan Usaha. SIGn Jurnal Hukum, 1(2), 87-103. https://doi.org/10.37276/sjh.v1i2.55
Maswandi, M. (2017). Penyelesaian Perselisihan Hubungan Kerja di Pengadilan Hubungan Industrial. Publikauma: Jurnal Administrasi Publik Universitas Medan Area, 5(1), 36-42. https://doi.org/10.31289/publika.v5i1.1203
Milica Z., K. (2016). The Right to Work in the Constitution of the Republic of Serbia. Zbornik Radova: Pravni Fakultet u Novom Sadu, 50(1), 313-330. https://doi.org/10.5937/zrpfns50-10929
Munira, M., & Salenda, K. (2020). Kontrak Non Competition Clause terhadap Perusahaan Franchise. Alauddin Law Development Journal (ALDEV), 2(2), 175-182. https://doi.org/10.24252/aldev.v2i2.15409
Qamar, N., & Rezah, F. S. (2020). Metode Penelitian Hukum: Doktrinal dan Non-Doktrinal. CV. Social Politic Genius (SIGn).
Sampara, S., & Husen, L. O. (2016). Metode Penelitian Hukum. Kretakupa Print.
Sari, E., & Dwiarti, R. (2018). Pendekatan Hierarki Abraham Maslow pada Prestasi Kerja Karyawan PT. Madubaru (PG Madukismo) Yogyakarta. Jurnal Perilaku dan Strategi Bisnis, 6(1), 58-77. https://doi.org/10.26486/jpsb.v6i1.421
Simbolon, P. G. M. (2023). Implementation of the Fair Use Defense Doctrine and Minimum Standards Principle in Copyright Dispute Settlement. SIGn Jurnal Hukum, 5(1), 74-90. https://doi.org/10.37276/sjh.v5i1.263
Siregar, Y. N. (2021). TRIPS dalam Perspektif Hukum atas Perlindungan Rahasia Dagang terhadap Tindakan Pekerja (Studi Kasus CV. Bintang Harapan dan CV Tiga Putra Berlian). JISIP (Jurnal Ilmu Sosial dan Pendidikan), 5(4), 1522-1529. http://dx.doi.org/10.58258/jisip.v5i4.2592
Solechan, S., Utami, T. R., & Azhar, M. (2020). Upaya Meningkatkan Jaminan Perlindungan Pekerja Migran Indonesia. Administrative Law and Governance Journal, 3(1), 153-161. https://doi.org/10.14710/alj.v3i1.153-161
Sukardi, E., Pasaribu, D., & Kaliye, V. X. (2021). Penahanan Ijazah Pekerja oleh Pemberi Kerja dalam Perspektif Teori Keadilan Bermartabat. Law Review, 20(3), 300-322. http://dx.doi.org/10.19166/lr.v0i0.3107
Tan, W. (2022). Analisis Yuridis Undang-Undang Nomor 11 Tahun 2020 tentang Cipta Kerja dalam Bidang Ketenagakerjaan. Dialogia Iuridica, 13(2), 46-64. https://doi.org/10.28932/di.v13i2.3630
Zimmerman, A. (2020). The California Gig Economy Law. Voices in Bioethics, 6, 1-7. https://doi.org/10.7916/vib.v6i.6961
Copyright (c) 2023 Wulan Purnamasari, Elza Syarief, Rina S. Shahrullah
This work is licensed under a Creative Commons Attribution 4.0 International License.
