The Letter of Employment is a fundamental document required under Indonesian employment law to formalize the employment relationship between companies and their employees. It serves as the primary reference point for employment terms and conditions, incorporating requirements from Law No. 13 of 2003 on Manpower and subsequent regulations. This document is typically issued after successful recruitment and before or upon commencement of employment, detailing essential aspects such as position, salary, benefits, and working conditions. The Letter of Employment must reflect current Indonesian labor law requirements, including mandatory provisions regarding social security, working hours, and leave entitlements. It's particularly important as it provides legal protection for both parties and serves as a reference document throughout the employment relationship.
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1. Company Details and Letterhead: Official company letterhead including full legal name, address, and registration numbers
2. Date and Reference Number: Formal letter date and internal reference number
3. Employee Details: Full name and address of the employee
4. Position and Employment Status: Job title, department, employment classification (permanent/fixed-term), and reporting relationship
5. Commencement Date: Start date of employment and any probationary period details
6. Compensation and Benefits: Base salary, allowances, bonuses, and other benefits including BPJS participation
7. Working Hours: Standard working hours, days, and overtime arrangements
8. Leave Entitlements: Annual leave, sick leave, religious holiday leave, and other statutory leave entitlements
9. Key Responsibilities: Main duties and responsibilities of the position
10. Company Policies: Reference to compliance with company policies and procedures
11. Confidentiality: Basic confidentiality obligations
12. Termination Provisions: Basic terms for termination of employment
13. Closing and Signatures: Signature blocks for authorized company representative and employee acknowledgment
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. Probationary Period: Include for new employees subject to probation
4. Language Requirements: Include when proficiency in specific languages is required
5. Intellectual Property: Include for roles involving creative work or innovation
6. Work Location Flexibility: Include if remote or hybrid working arrangements are applicable
7. Performance Bonus Structure: Include if role has specific bonus or commission schemes
8. Educational Support: Include if company provides training or education benefits
1. Schedule A - Detailed Job Description: Comprehensive list of duties, responsibilities, and performance expectations
2. Schedule B - Benefits Details: Detailed breakdown of all benefits, insurance coverage, and BPJS participation
3. Schedule C - Compensation Structure: Detailed breakdown of salary components, allowances, and deductions
4. Schedule D - Company Policies Reference: List of applicable company policies and procedures with their references
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