The Employee Letter of Employment is a fundamental document required under Indonesian employment law to formalize the employment relationship between companies and their employees. It must be issued in accordance with Law No. 13/2003 (Manpower Law) and related regulations, serving as the primary document that defines the terms and conditions of employment. This letter is typically issued after successful recruitment and before or upon the commencement of employment, containing all mandatory employment terms required by Indonesian law. It's essential for both permanent (PKWTT) and fixed-term (PKWT) employment arrangements and should be provided to all new employees regardless of their position or employment status. The document provides legal protection for both parties and serves as a reference point for the duration of the employment relationship.
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1. Company Details: Full legal name and address of the employing company
2. Employee Details: Full name and address of the employee
3. Position and Duties: Job title, role description, and primary responsibilities
4. Employment Status: Whether permanent or fixed-term (PKWT) employment, and start date
5. Work Location: Primary workplace location and any flexibility arrangements
6. Working Hours: Standard working hours, days, and any shift arrangements
7. Compensation: Base salary, payment schedule, and mandatory allowances
8. Benefits: Statutory benefits including BPJS Health and Employment insurance
9. Leave Entitlements: Annual leave, sick leave, and public holiday provisions
10. Probation Period: Length and terms of probation period if applicable
11. Notice Period: Required notice period for termination by either party
12. Confidentiality: Basic confidentiality obligations
13. Governing Law: Reference to Indonesian law and jurisdiction
1. Mobility Clause: Include when the role may require relocation or travel
2. Non-Competition: Include for senior positions or roles with access to sensitive information
3. Performance Bonus: Include when offering variable compensation components
4. Remote Work: Include when offering work-from-home or hybrid arrangements
5. Education/Training: Include when providing specific training or education benefits
6. Company Property: Include when providing equipment or other company assets
7. Intellectual Property: Include for creative or technical roles involving IP creation
8. Additional Benefits: Include when offering benefits above statutory requirements
1. Job Description: Detailed description of roles, responsibilities, and reporting lines
2. Compensation Structure: Breakdown of salary components and allowances
3. Company Policies: Reference to key company policies and procedures
4. Benefits Summary: Detailed explanation of all benefits and eligibility conditions
5. Code of Conduct: Summary of expected behavioral standards and company values
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