Employer Employee Agreement Template for Indonesia

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Key Requirements PROMPT example:

Employer Employee Agreement

"I need an Employer Employee Agreement for a senior software developer position in Jakarta, Indonesia, with specific clauses for intellectual property rights, remote work arrangements, and performance-based bonuses to start from March 1, 2025."

Document background
The Employer Employee Agreement serves as the foundational document governing the employment relationship in Indonesia. This agreement is essential for establishing clear terms and conditions of employment while ensuring compliance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and related regulations. It is typically used when hiring new employees, converting temporary workers to permanent status, or updating employment terms with existing staff. The document covers crucial aspects such as job responsibilities, compensation, working hours, leave entitlements, and termination provisions, while incorporating mandatory benefits and protections required under Indonesian law. This agreement is designed to protect both employer and employee interests while maintaining legal compliance and establishing clear expectations for the employment relationship. It should be regularly reviewed and updated to reflect changes in labor laws and company policies.
Suggested Sections

1. Parties: Identification of the employer and employee, including their legal names, addresses, and any relevant registration numbers

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Position and Duties: Employee's job title, role, responsibilities, and reporting relationships

5. Term of Employment: Duration of employment (permanent or fixed-term) and probation period if applicable

6. Working Hours and Location: Standard working hours, overtime provisions, and primary work location

7. Compensation and Benefits: Base salary, allowances, bonuses, 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 insurance coverage as required by law

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

11. Intellectual Property: Ownership and rights to work products created during employment

12. Termination: Grounds for termination, notice periods, and severance requirements as per Indonesian law

13. Governing Law: Application of Indonesian law and jurisdiction

14. Dispute Resolution: Process for resolving employment-related disputes as per Law No. 2 of 2004

15. Entire Agreement: Integration clause and amendment procedures

Optional Sections

1. Non-Competition: Restrictions on working for competitors after employment ends (use when protecting legitimate business interests)

2. Non-Solicitation: Restrictions on soliciting employees or customers (use for senior positions)

3. Mobility Clause: Provisions for potential workplace relocation (use when business operations may require employee relocation)

4. Commission Structure: Detailed commission calculation and payment terms (use for sales positions)

5. Performance Targets: Specific performance expectations and review processes (use for target-based roles)

6. Training Requirements: Mandatory training programs and professional development (use when specific qualifications must be maintained)

7. Work From Home Policy: Remote working arrangements and conditions (use when flexible working arrangements are offered)

8. Company Property: Terms for use and return of company equipment (use when significant company assets are provided)

Suggested Schedules

1. Schedule 1 - Job Description: Detailed description of roles, 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 employment terms

4. Schedule 4 - Statutory Benefits: Details of mandatory benefits under Indonesian law

5. Appendix A - Code of Conduct: Company's code of conduct and ethical standards

6. Appendix B - Confidential Information: Definition and examples of confidential information

7. Appendix C - Leave Policy: Detailed leave application and approval procedures

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

Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Technology

Financial Services

Retail

Healthcare

Education

Professional Services

Hospitality

Construction

Mining

Agriculture

Telecommunications

Media and Entertainment

Transportation and Logistics

Energy and Utilities

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Research and Development

Customer Service

Production

Quality Assurance

Business Development

Administration

Supply Chain

Project Management

Relevant Roles

Chief Executive Officer

Managing Director

Department Manager

Senior Executive

Administrative Assistant

Sales Representative

Technical Specialist

Project Manager

Human Resources Manager

Financial Controller

Operations Manager

Marketing Executive

Research Analyst

Software Developer

Customer Service Representative

Production Supervisor

Quality Control Inspector

Account Manager

Business Development Executive

Legal Counsel

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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