This Indefinite Contract template is designed for establishing permanent employment relationships under Indonesian law. It is used when an employer intends to hire an employee on a permanent basis, as opposed to a fixed-term contract (PKWT). The document complies with Indonesian labor regulations, particularly Law No. 13 of 2003 on Manpower and its amendments under the Job Creation Law No. 11 of 2020. It should be used for any permanent position within an organization, containing all mandatory provisions required by Indonesian law including probation periods (if applicable), working hours, remuneration, statutory benefits, and termination procedures. The agreement serves as a comprehensive record of the employment relationship and protects both employer and employee interests while ensuring compliance with local labor regulations.
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1. Parties: Identification of the employer and employee, including their legal addresses and details
2. Background: Brief context of the employment relationship and agreement purpose
3. Definitions: Key terms used throughout the agreement
4. Position and Duties: Job title, role description, responsibilities, and reporting structure
5. Commencement and Duration: Start date and confirmation of indefinite term nature of the contract
6. Probation Period: Duration and terms of the initial probation period (maximum 3 months under Indonesian law)
7. Working Hours and Location: Standard working hours, overtime provisions, and primary work location
8. Remuneration and Benefits: Base salary, allowances, bonuses, and mandatory benefits including THR religious holiday allowance
9. Leave Entitlements: Annual leave, sick leave, religious holidays, and other statutory leave rights
10. Social Security: BPJS Health and Employment participation and contributions
11. Confidentiality: Protection of company confidential information and trade secrets
12. Company Policies: Compliance with company regulations and policies
13. Termination: Grounds and procedures for termination as per Indonesian labor law
14. Governing Law: Confirmation of Indonesian law application and dispute resolution procedures
1. Non-Competition: Restrictions on working for competitors, used for senior positions or roles with access to sensitive information
2. Intellectual Property: IP rights assignment, relevant for technical or creative roles
3. Performance Reviews: Process for regular performance evaluations, typically for management positions
4. International Travel: Terms for international assignments or travel, if role requires overseas work
5. Training Commitments: Required training programs and bond periods, if applicable
6. Remote Working: Terms for work-from-home or remote working arrangements, if applicable
7. Commission Structure: Detailed commission terms for sales or performance-based roles
8. Variable Compensation: Structure for performance-based pay components, for eligible positions
1. Schedule 1 - Detailed Job Description: Comprehensive list of duties, responsibilities, and performance expectations
2. Schedule 2 - Compensation Structure: Detailed breakdown of salary components, allowances, and benefits
3. Schedule 3 - Company Policies Reference: List of applicable company policies and procedures
4. Schedule 4 - Benefits Summary: Details of all benefits including insurance coverage and BPJS participation
5. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines
6. Appendix B - Confidentiality Agreement: Detailed confidentiality terms and protected information
7. Appendix C - Leave Policy: Detailed leave application and approval procedures
Authors
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