At Will Contract Template for Indonesia

This employment contract template is designed for use in Indonesia, incorporating the requirements of Indonesian labor law, particularly Law No. 13 of 2003 on Manpower and its amendments under the Job Creation Law No. 11 of 2020. While structured as a flexible employment agreement, it maintains compliance with Indonesian regulatory requirements regarding employment terms, termination procedures, and mandatory benefits. The document includes comprehensive provisions for employment terms, compensation, benefits, working conditions, and termination procedures, all aligned with Indonesian legal requirements and market practices.

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What is a At Will Contract?

This At Will Contract template is designed for employment relationships in Indonesia, though it's important to note that pure "at-will" employment as known in some other jurisdictions is not recognized under Indonesian law. The document serves as a comprehensive employment agreement that complies with Indonesian labor regulations, particularly Law No. 13 of 2003 on Manpower and the Job Creation Law No. 11 of 2020. It should be used when establishing new employment relationships or updating existing employment terms in Indonesia. The contract includes mandatory provisions required by Indonesian law regarding employment terms, benefits, working conditions, and termination procedures, while maintaining as much flexibility as permitted within the Indonesian legal framework. It's suitable for various employment levels and can be customized based on specific role requirements, though certain provisions must remain consistent with Indonesian labor law requirements.

What sections should be included in a At Will Contract?

1. Parties: Identification of the employer and employee, including 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: Employee's job title, role, and primary responsibilities

5. Term of Employment: Start date and nature of the employment relationship

6. Working Hours and Location: Standard working hours, location, and flexibility provisions

7. Compensation and Benefits: Salary, payment schedule, and mandatory benefits as per Indonesian law

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

9. Social Security and Insurance: BPJS participation and other mandatory insurance requirements

10. Confidentiality: Protection of company confidential information

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

12. Governing Law: Specification 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 between parties

What sections are optional to include in a At Will Contract?

1. Probationary Period: Details of initial probationary period - include for new permanent employees

2. Non-Competition: Restrictions on working for competitors - include for senior positions or roles with access to sensitive information

3. Intellectual Property: Ownership of work products and inventions - include for creative or technical positions

4. Remote Work Provisions: Specific terms for remote working arrangements - include if remote work is permitted

5. Performance Reviews: Structure and timing of performance evaluations - include for permanent positions

6. Bonus and Commission Structure: Details of variable compensation - include for sales or performance-based roles

7. International Travel: Terms for international travel and assignments - include for positions requiring travel

8. Training and Development: Provisions for professional development and required training - include for technical or professional roles

What schedules should be included in a At Will Contract?

1. Schedule A - Job Description: Detailed description of role, responsibilities, and reporting relationships

2. Schedule B - Compensation Structure: Detailed breakdown of salary components and benefits

3. Schedule C - Company Policies: Key company policies that form part of the employment terms

4. Schedule D - Code of Conduct: Company's code of conduct and ethical standards

5. Appendix 1 - Leave Policy: Detailed leave policies and procedures

6. Appendix 2 - Confidential Information: Specific details of what constitutes confidential information

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Publisher

Genie AI

Cost

Free to use

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