Domestic Worker Contract Template for Indonesia
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What is a Domestic Worker Contract?
The Domestic Worker Contract is a legally binding agreement used in Indonesia to formalize employment relationships between households and domestic workers. This document is essential for compliance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and specific regulations protecting domestic workers. It should be used whenever engaging a domestic worker in Indonesia, whether full-time or part-time, live-in or live-out. The contract covers crucial elements including work duties, compensation, working hours, leave entitlements, and other rights and obligations of both parties. It provides legal protection for both employers and workers while ensuring adherence to local labor standards and social security requirements. The document is designed to be clear and accessible while maintaining legal validity under Indonesian law.
About the Domestic Worker Contract
A Domestic Worker Contract is your legal foundation for employing household staff in Indonesia. This formal employment agreement protects both you as an employer and your domestic worker by clearly defining rights, responsibilities, and working conditions under Indonesian labor law. The contract ensures compliance with national employment standards while preventing misunderstandings that could lead to disputes or legal complications.
When do you need this document?
You need a Domestic Worker Contract whenever you hire household staff in Indonesia, whether full-time or part-time, live-in or live-out. This includes hiring housekeepers, nannies, gardeners, drivers, or any other domestic employees. The contract is mandatory before work begins and must be executed regardless of the employment duration. If you're using an employment agency to source domestic workers, the contract remains essential to establish the direct employment relationship. You also need this document when transferring domestic workers between family members or when modifying existing employment arrangements.
Key legal considerations
Your contract must include specific mandatory clauses to comply with Indonesian law. The scope of work section must clearly define all duties and responsibilities to prevent exploitation or unreasonable work demands. Working hours and rest periods require careful attention, especially for live-in workers who are entitled to daily and weekly rest periods under Minister of Manpower Decree No. 39 of 2016. Compensation terms must meet or exceed provincial minimum wage requirements and specify payment schedules and methods. Social security provisions are crucial, as Law No. 24 of 2011 requires coverage for workers meeting certain criteria. The contract should address termination procedures, notice periods, and severance obligations to protect both parties' interests.
Legal requirements in Indonesia
Indonesian law mandates that domestic worker contracts comply with Law No. 13 of 2003 on Manpower and Minister of Manpower Regulation No. 2 of 2015 on Protection of Domestic Workers. Your contract must be written in Indonesian language and signed by both parties in the presence of witnesses. If your domestic worker is under 18, a legal guardian must sign the agreement. Employment agencies involved in the placement must be properly licensed and registered with local authorities. The contract must specify that domestic workers are entitled to fair wages, reasonable working hours, adequate rest periods, and safe working conditions. You must also ensure compliance with local labor office registration requirements and maintain proper documentation for inspection by labor authorities when requested.
GOVERNING LAW
Applicable law
This Domestic Worker Contract is drafted to comply with Indonesia law. Key legislation includes:
Minister of Manpower Regulation No. 2 of 2015: Specific regulation on the Protection of Domestic Workers, covering working conditions, basic rights, and minimum standards for domestic work arrangements
Law No. 24 of 2011 on Social Security Administrative Bodies: Regulates social security coverage requirements for workers, including provisions that can apply to domestic workers
Minister of Manpower Decree No. 39 of 2016: Guidelines on work and rest hours, particularly relevant for live-in domestic workers
Provincial Minimum Wage Regulations: Local regulations setting minimum wage standards that should be considered for domestic worker compensation
Law No. 23 of 2004 on Elimination of Domestic Violence: Provides protection for domestic workers against abuse and harassment in the household workplace
Minister of Manpower Regulation No. 5 of 2018: Guidelines on occupational safety and health standards that can be applied to domestic work environments
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