LamLaj
Vol. 11 No. 2 (2026): September

Application of the Principle of Balance in Non-Competition Clauses in Indonesia Based on German Law

Muhammad Azhari Rahman (Faculty of Law, Universitas Lambung Mangkurat, Indonesia)
Saprudin Saprudin (Faculty of Law, Universitas Lambung Mangkurat, Indonesia)



Article Info

Publish Date
22 Sep 2026

Abstract

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.

Copyrights © 2026






Journal Info

Abbrev

abc

Publisher

Subject

Law, Crime, Criminology & Criminal Justice

Description

The aims of this journal is to provide a venue for academicians, researchers and practitioners for publishing the original research articles or review articles. The scope of the articles published in this journal deal with a broad range of topics in the fields of Notary Law, Civil Law, Inheritance ...