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bibo:abstract "A Non-Competition Clause is a provision in an employment agreement that restricts employees from working for competing companies after the termination of their employment. Non-Competition Clauses are not specifically regulated under Indonesian positive law, resulting in differing views regarding their validity and implementation in employment agreements. Supreme Court Decision Number 3549 K/Pdt/2023 is a significant decision because it affirms that a breach of a Non-Competition Clause may be classified as a breach of contract (wanprestasi) for the purpose of protecting the company's trade secrets. However, the decision also raises concerns regarding the legal status of Non-Competition Clauses within the Indonesian legal system and the consistency of the Supreme Court's legal reasoning with the principle of justice.\r\nThis research employs a normative legal research method using a statutory approach, a conceptual approach, and a case approach, with a descriptive-analytical method applied to data obtained from secondary legal sources consisting of primary, secondary, and tertiary legal materials. Data were collected through legal materials contained in journals, books, theses, dissertations, articles, and relevant legislation concerning the legal issues under examination. The collected materials were then analysed using a qualitative descriptive method based on the available legal data.\r\nThe findings indicate that, first, Non-Competition Clauses are generally valid under the principle of freedom of contract provided that they fulfil the requirements for a valid agreement, aim to protect trade secrets, and do not contravene the principles of proportionality, fairness, and employees' rights. Second, the classification of a Non-Competition Clause as a breach of contract in Supreme Court Decision Number 3549 K/Pdt/2023 has not fully reflected substantive justice because the decision does not establish reasonable parameters for such restrictions or require compensation for affected employees, potentially creating an imbalance in the protection of employees' and employers' interests. Nevertheless, the decision provides legal certainty regarding the enforceability of Non-Competition Clauses aimed at protecting trade secrets."^^xsd:string;
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