At Will Employment Agreement for Indonesia

At Will Employment Agreement Template for Indonesia

This employment agreement is designed for use in Indonesia and establishes the terms and conditions of employment between an employer and employee. While structured as an employment agreement with flexible termination provisions, it incorporates mandatory protections required under Indonesian labor law, including Law No. 13/2003 and the Omnibus Law. The agreement covers essential employment terms such as compensation, benefits, working hours, leave entitlements, and termination procedures, while ensuring compliance with Indonesian statutory requirements including mandatory benefits, religious holiday allowance (THR), and social security provisions.

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What is a At Will Employment Agreement?

This At Will Employment Agreement template is designed for use in Indonesian business operations where employers seek to maintain maximum flexibility in employment relationships while complying with Indonesian labor law. Unlike traditional at-will employment in countries like the United States, Indonesian law requires specific provisions for termination, benefits, and employee protections. This document incorporates these mandatory requirements while preserving as much flexibility as legally permitted. It's particularly useful for companies establishing new employment relationships in Indonesia or updating existing contracts to align with current regulations, including the recent Omnibus Law changes. The agreement includes comprehensive provisions for compensation, benefits, working conditions, and termination procedures that comply with Law No. 13/2003 and related regulations.

What sections should be included in a At Will Employment Agreement?

1. Parties: Identification of the employer and employee, including their legal addresses and details

2. Background: 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, responsibilities, and reporting relationships

5. Work Location: Primary workplace and potential for relocation or remote work

6. Working Hours: Standard working hours, overtime provisions, and rest periods as per Indonesian labor law

7. Compensation: Base salary, payment schedule, and mandatory allowances including Religious Holiday Allowance (THR)

8. Benefits: Mandatory benefits including BPJS Healthcare and Employment Social Security

9. Leave Entitlements: Annual leave, sick leave, and other statutory leave requirements

10. Probationary Period: Initial evaluation period (maximum 3 months as per Indonesian law)

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

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

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

14. Governing Law: Application of Indonesian law and jurisdiction

15. Dispute Resolution: Process for resolving employment-related disputes

What sections are optional to include in a At Will Employment Agreement?

1. Non-Competition: Restrictions on working for competitors (note: limited enforceability in Indonesia)

2. Mobility Clause: Required for positions that may involve relocation or travel

3. Commission Structure: For sales or performance-based roles

4. Remote Work Provisions: For positions allowing work from home or remote locations

5. Language Requirements: For positions requiring specific language skills or where agreement is bilingual

6. Training Commitments: For positions requiring specific training or certification

7. Company Property: When employee is provided with significant company assets or equipment

8. Performance Reviews: Detailed performance evaluation procedures for senior positions

What schedules should be included in a At Will Employment Agreement?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and performance expectations

2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits

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

4. Schedule 4 - Code of Conduct: Expected behavioral standards and ethical requirements

5. Appendix A - Confidential Information: Specific details of confidential information and trade secrets

6. Appendix B - Return of Company Property: List of company property provided to employee

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 | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Clauses
Relevant Industries

Technology

Manufacturing

Financial Services

Retail

Healthcare

Education

Professional Services

Hospitality

Construction

Mining

Agriculture

Transportation

Telecommunications

Energy

Consumer Goods

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Research and Development

Customer Service

Product Development

Quality Assurance

Business Development

Administration

Strategy

Public Relations

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Manager

Department Manager

Senior Developer

Software Engineer

Sales Representative

Administrative Assistant

Human Resources Manager

Marketing Coordinator

Project Manager

Account Executive

Operations Manager

Research Analyst

Customer Service Representative

Technical Support Specialist

Business Development Manager

Financial Analyst

Product Manager

Quality Assurance Engineer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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