The Agreement Contract Between Employer And Employees serves as the foundational document governing employment relationships in Indonesia. This document is essential when hiring new employees or formalizing existing employment relationships, ensuring compliance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and its implementing regulations. It should be used for both permanent and fixed-term employment arrangements, incorporating mandatory provisions for employee protection, social security benefits, religious holiday allowances (THR), and other requirements specific to Indonesian employment law. The agreement provides legal certainty for both parties while establishing clear rights, obligations, and expectations throughout the employment relationship. It must be drafted in Bahasa Indonesia, with an English translation permitted as a companion document, though the Indonesian version prevails in case of discrepancies.
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1. Parties: Identification of the employer and employee with complete legal names and addresses
2. Background: Context of the employment relationship and purpose of the agreement
3. Definitions: Definitions of key terms used throughout the agreement
4. Position and Duties: Details of the employee's role, responsibilities, and reporting structure
5. Term of Employment: Duration of employment (permanent or fixed-term) and effective date
6. Working Hours and Location: Standard working hours, work location, and overtime provisions
7. Compensation and Benefits: Salary, mandatory benefits, and payment terms including THR (Religious Holiday Allowance)
8. Leave Entitlements: Annual leave, sick leave, religious holidays, and other permitted absences
9. Social Security: BPJS Healthcare and Employment provisions as required by law
10. Confidentiality: Protection of company confidential information and trade secrets
11. Intellectual Property: Ownership of work products and innovations created during employment
12. Code of Conduct: Expected behavior, compliance with company policies and procedures
13. Termination: Grounds for termination and procedures in accordance with Indonesian law
14. Governing Law: Specification of Indonesian law as governing law and dispute resolution procedures
1. Probation Period: Terms of initial probation period - only for permanent employment agreements
2. Non-Competition: Post-employment competition restrictions - for senior positions or roles with access to sensitive information
3. Mobility Clause: Provisions for potential relocation - for companies with multiple locations
4. Commission Structure: Detailed commission terms - for sales or performance-based roles
5. Training Requirements: Mandatory training and development obligations - for specialized roles
6. Work From Home Provisions: Remote working arrangements - for flexible working arrangements
7. Vehicle/Equipment Provisions: Terms for company-provided vehicles or equipment - when applicable
8. Language Requirements: Language proficiency requirements and official translation provisions - for multinational companies
1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and performance expectations
2. Schedule 2 - Compensation Details: Breakdown of salary components, benefits, and allowances
3. Schedule 3 - Company Policies: Key company policies and procedures referenced in the agreement
4. Schedule 4 - Confidential Information: Specific details of confidential information and trade secrets
5. Schedule 5 - Performance Metrics: Key performance indicators and evaluation criteria
6. Appendix A - Required Documents: List of required personal documents and certifications
7. Appendix B - Benefits Summary: Detailed description of all benefits and eligibility criteria
8. Appendix C - Local Office Rules: Specific rules and procedures for the workplace
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