2 Year Employment Contract Template for Indonesia

This 2 Year Employment Contract template is designed for use in Indonesia when establishing fixed-term employment relationships under Indonesian labor law. It's particularly suitable for companies looking to hire employees for specific projects, seasonal work, or temporary positions that comply with the maximum duration requirements under Indonesian regulations. The contract incorporates all mandatory provisions required by Law No. 13 of 2003 on Manpower and subsequent regulations, including Government Regulation No. 35 of 2021. This document should be used when the nature of work falls within the permissible categories for fixed-term employment under Indonesian law, and when the employment duration is planned for exactly two years. The contract includes comprehensive provisions for employee rights and obligations, ensuring compliance with local labor regulations while protecting both employer and employee interests.

1. Parties: Identification of the employer and employee, including their complete legal names, addresses, and positions

2. Background: Brief context of the employment relationship and agreement to enter into a fixed-term contract

3. Definitions: Key terms used throughout the agreement

4. Term of Employment: Specific start and end dates of the 2-year contract, including probation period if applicable

5. Position and Duties: Detailed description of the employee's role, responsibilities, and reporting structure

6. Work Location: Primary workplace location and potential for transfer or remote work arrangements

7. Working Hours: Standard working hours, overtime provisions, and rest periods in accordance with Indonesian labor law

8. Compensation and Benefits: Salary, mandatory allowances, bonuses, and statutory benefits including BPJS participation

9. Leave Entitlements: Annual leave, sick leave, religious holiday leave, and other statutory leave provisions

10. Confidentiality: Protection of company confidential information and trade secrets

11. Intellectual Property: Ownership of work products and innovations created during employment

12. Non-Competition and Non-Solicitation: Restrictions on competitive activities during employment

13. Termination: Grounds for termination and procedures in accordance with Indonesian labor law

14. Governing Law: Specification of Indonesian law as governing law and dispute resolution procedures

15. Language: Specification of dual language (Indonesian and English) and prevailing version