The Employment Contract For Contract Workers (PKWT) is a fundamental document used in Indonesia to establish fixed-term employment relationships under Indonesian labor law. This contract type is specifically designed for temporary, seasonal, or project-based work arrangements, where the employment relationship is intended for a specified duration. It must comply with Law No. 13 of 2003 on Manpower, as amended by the Job Creation Law, and includes mandatory provisions regarding employment terms, benefits, and worker protections. The document is crucial for businesses requiring temporary workforce solutions while ensuring compliance with Indonesian labor regulations, including maximum contract duration limits, renewal restrictions, and statutory benefits requirements.
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1. Parties: Identification of the employer and employee, including their complete legal names, addresses, and positions
2. Background: Context of the employment relationship and confirmation this is a fixed-term contract arrangement
3. Definitions: Key terms used throughout the agreement, including specific Indonesian labor law terminology
4. Term of Employment: Specific start and end dates of the contract, including any probationary period if applicable
5. Position and Duties: Detailed description of the employee's role, responsibilities, and reporting relationships
6. Work Location: Primary workplace location and any provisions for temporary relocation or remote work
7. Working Hours: Standard working hours, overtime provisions, and rest periods in compliance with Indonesian labor law
8. Compensation and Benefits: Salary, mandatory allowances, and benefits including social security (BPJS) coverage
9. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements
10. Confidentiality: Protection of company confidential information and trade secrets
11. Company Policies: Employee's obligation to comply with company policies and procedures
12. Termination: Grounds for termination and procedures in accordance with Indonesian labor law
13. Governing Law: Confirmation that the agreement is governed by Indonesian law
14. Dispute Resolution: Process for resolving employment-related disputes
15. Entire Agreement: Standard clause confirming this document represents the complete agreement between parties
1. Non-Competition: Restrictions on working for competitors, used when employee has access to sensitive information or strategic roles
2. Intellectual Property: IP rights and assignment provisions, included for technical or creative roles
3. Performance Requirements: Specific KPIs or performance standards, used for sales or target-based roles
4. Training Requirements: Mandatory training or certification requirements, included for specialized roles
5. Travel Requirements: Travel obligations and related compensation, used for roles requiring regular travel
6. Language Requirements: Language proficiency requirements and testing, used when language skills are essential
7. Equipment and Tools: Provisions regarding company-provided equipment, included when significant equipment is provided
8. Commission Structure: Detailed commission calculations and terms, used for sales positions
9. Housing Allowance: Terms of housing benefits, included when accommodation is provided
10. Rotation Policy: Terms for job rotation or location changes, used in companies with multiple locations
1. Schedule A - Job Description: Detailed description of roles, responsibilities, and performance expectations
2. Schedule B - Compensation Details: Breakdown of salary components, allowances, and benefits
3. Schedule C - Company Policies: Key company policies that form part of the employment terms
4. Schedule D - Code of Conduct: Expected behavioral standards and ethical guidelines
5. Schedule E - Confidentiality Agreement: Detailed confidentiality obligations and protected information
6. Appendix 1 - Required Documents: List of documents required from employee (ID, certificates, etc.)
7. Appendix 2 - Benefits Summary: Summary of all applicable benefits and insurance coverage
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