The Job Employment Contract serves as the primary document establishing an employment relationship in Indonesia, governed by Law No. 13 of 2003 on Manpower and the Omnibus Law of 2020. This document is essential when hiring new employees, whether on a fixed-term (PKWT) or permanent (PKWTT) basis, and must be executed before or at the commencement of employment. It contains all mandatory provisions required by Indonesian law, including working conditions, compensation, benefits, and termination procedures, while also addressing specific Indonesian requirements such as religious holiday allowances (THR) and social security participation. The contract can be customized for various employment levels and sectors while maintaining compliance with local labor regulations, making it suitable for both domestic and multinational companies operating in Indonesia.
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1. Parties: Identification of the employer and employee, including their complete legal names and addresses
2. Background: Brief context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Position and Duties: Job title, role description, and primary responsibilities
5. Term of Employment: Employment start date and whether fixed-term or permanent (PKWT or PKWTT)
6. Probation Period: Length and terms of the probationary period (if applicable for permanent contracts)
7. Working Hours and Location: Standard working hours, work location, and overtime provisions
8. Remuneration: Base salary, payment schedule, and mandatory allowances
9. Leave Entitlements: Annual leave, sick leave, and religious holiday provisions
10. Social Security: BPJS Healthcare and Employment benefits as required by law
11. Termination: Grounds for termination and procedures in accordance with Indonesian law
12. Governing Law: Confirmation of Indonesian law as governing law
13. Dispute Resolution: Process for resolving employment-related disputes
14. Entire Agreement: Standard clause confirming this document as the complete agreement
1. Intellectual Property: Required for roles involving creation of IP or access to company IP
2. Confidentiality: Detailed confidentiality obligations, recommended for management or sensitive positions
3. Non-Competition: Post-employment restrictions, subject to Indonesian law limitations
4. Relocation: Terms for domestic or international relocation if applicable
5. Commission Structure: For sales or performance-based roles
6. Remote Working: Policies and conditions for remote work arrangements
7. Training Requirements: Mandatory training and professional development obligations
8. Company Property: Rules regarding use and return of company equipment
9. Foreign Worker Provisions: Additional clauses required for expatriate employees
1. Schedule 1 - Job Description: Detailed description of roles, responsibilities, and reporting lines
2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits
3. Schedule 3 - Company Policies: Key workplace policies and procedures
4. Schedule 4 - Performance Metrics: KPIs and performance evaluation criteria
5. Appendix A - Code of Conduct: Company's code of conduct and ethical standards
6. Appendix B - Leave Policy: Detailed leave application and approval procedures
7. Appendix C - Confidential Information: List of information considered confidential by the company
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