The Employee Transfer Agreement is a crucial document used in Indonesia when employees need to be transferred between legal entities, whether due to corporate restructuring, acquisition, or internal reorganization. It ensures compliance with Indonesian labor laws, particularly Law No. 13/2003 on Manpower and the Job Creation Law (Omnibus Law). The agreement covers essential aspects such as the continuation of employment terms, preservation of service years, transfer of benefits, and social security arrangements. It is designed to protect both employer and employee interests while maintaining legal compliance with Indonesian employment regulations. The document typically includes detailed information about the transfer process, employee rights, and obligations of both the transferor and transferee companies.
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1. Parties: Identifies the current employer (transferor), new employer (transferee), and employee(s) being transferred
2. Background: Explains the context and purpose of the transfer, including any corporate restructuring or business transfer context
3. Definitions: Defines key terms used throughout the agreement
4. Transfer Date and Process: Specifies the effective date of transfer and outlines the transfer implementation process
5. Continuation of Employment: Confirms the continuation of employment and preservation of service years
6. Employment Terms and Conditions: Details the terms and conditions of employment post-transfer, including confirmation of maintained benefits
7. Employee Benefits and Entitlements: Addresses the transfer of employee benefits, including social security (BPJS) arrangements
8. Obligations of the Transferor: Sets out the responsibilities and obligations of the current employer
9. Obligations of the Transferee: Details the responsibilities and obligations of the new employer
10. Employee Data Protection: Addresses the handling and transfer of employee personal data
11. Representations and Warranties: Contains statements of fact and promises by both parties
12. Governing Law and Jurisdiction: Specifies Indonesian law as governing law and defines jurisdiction for disputes
13. Execution: Signature blocks and execution formalities
1. Collective Bargaining Agreements: Required when transferred employees are covered by collective bargaining agreements
2. Intellectual Property Rights: Needed when employees have created or are involved with IP in their roles
3. Non-compete and Confidentiality: Include when transferring employees have access to sensitive information or when new restrictions are needed
4. Pension Arrangements: Required for employees with specific pension or retirement benefit arrangements
5. Outstanding Claims and Liabilities: Include when there are pending employee claims or known liabilities
6. Training and Transition Support: Added when specific training or transition support is part of the transfer arrangement
7. Return of Company Property: Include when there are specific arrangements for handling company property during transfer
1. Schedule 1 - List of Transferring Employees: Detailed list of employees being transferred with relevant employment information
2. Schedule 2 - Current Employment Terms: Summary of existing employment terms and conditions for each employee
3. Schedule 3 - Employee Benefits: Detailed breakdown of current benefits and their continuation post-transfer
4. Schedule 4 - Transfer Timeline: Detailed timeline of transfer process and key milestones
5. Appendix A - Required Notices and Communications: Templates for employee notifications and other required communications
6. Appendix B - Handover Checklist: Checklist of tasks to be completed as part of the transfer process
7. Appendix C - Relevant Company Policies: Key policies applicable to transferred employees
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