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Employment Bargaining Agreement

Employment Bargaining Agreement Template for Indonesia

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Key Requirements PROMPT example:

Employment Bargaining Agreement

"I need an Employment Bargaining Agreement for our manufacturing facility in Jakarta, Indonesia, covering 500 workers across three shifts, to be effective from January 2025, with particular emphasis on safety protocols and overtime regulations."

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Document background
The Employment Bargaining Agreement is a fundamental document in Indonesian industrial relations, required when a company employs workers represented by a labor union. This agreement is mandated under Indonesian labor law, particularly Law No. 13 of 2003 on Manpower and Minister of Manpower Regulation No. 28 of 2014. It serves as a comprehensive framework detailing all aspects of the employment relationship, from basic working conditions to complex benefits structures. The document must be negotiated in good faith between management and union representatives, registered with the Ministry of Manpower, and typically remains valid for 2-3 years. It's particularly crucial for maintaining industrial harmony and ensuring legal compliance in Indonesia's dynamic labor environment, where worker protections are strongly emphasized in the legal framework.
Suggested Sections

1. Parties: Identification of the employer and the labor union(s) representing the employees

2. Background: Context of the agreement, including history of negotiations and purpose of the agreement

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

4. Recognition and Scope: Recognition of the union and scope of the agreement, including covered employee categories

5. Term and Renewal: Duration of the agreement and procedures for renewal or termination

6. Working Hours and Conditions: Standard working hours, overtime provisions, and general working conditions

7. Compensation and Benefits: Basic salary structure, allowances, bonuses, and mandatory benefits

8. Leave Entitlements: Annual leave, sick leave, religious holidays, and other types of leave

9. Social Security and Insurance: Mandatory BPJS participation and any additional insurance coverage

10. Health and Safety: Workplace safety measures and health protection requirements

11. Disciplinary Procedures: Process for handling workplace violations and disciplinary actions

12. Grievance Procedures: Steps for addressing employee grievances and dispute resolution

13. Union Rights and Facilities: Union activities, facilities, and time off for union duties

14. Termination Provisions: Grounds and procedures for employment termination and severance calculations

15. General Provisions: Miscellaneous legal provisions including governing law and entire agreement clause

Optional Sections

1. Production Standards: Specific performance metrics and production requirements - include for manufacturing or production-focused operations

2. Shift Work Arrangements: Detailed shift patterns and rotations - include for 24-hour operations or multiple shift patterns

3. Training and Development: Professional development and training programs - include when there's significant focus on skill development

4. Profit Sharing: Terms for employee profit sharing or performance bonuses - include when offering additional financial incentives

5. Remote Work Provisions: Rules and conditions for remote working - include for companies offering flexible work arrangements

6. Technological Change: Procedures for implementing new technology and related training - include in technology-dependent industries

7. Environmental Compliance: Environmental protection measures and employee responsibilities - include for industries with environmental impact

8. Intellectual Property: IP rights and confidentiality obligations - include for knowledge-based industries or R&D operations

Suggested Schedules

1. Schedule A - Salary Grades and Scales: Detailed breakdown of salary grades, scales, and progression criteria

2. Schedule B - Allowances and Benefits: Comprehensive list of allowances, benefits, and eligibility criteria

3. Schedule C - Job Classifications: List of job categories, roles, and their classifications

4. Schedule D - Overtime Calculation: Detailed methodology for calculating overtime pay

5. Schedule E - Leave Calculation: Specific calculations and procedures for various types of leave

6. Schedule F - Performance Evaluation: Performance assessment criteria and evaluation procedures

7. Appendix 1 - Company Policies: Referenced company policies that form part of the agreement

8. Appendix 2 - Grievance Forms: Standard forms for filing and processing grievances

9. Appendix 3 - Safety Procedures: Detailed workplace safety procedures and protocols

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Company
Union
Effective Date
Employee
Permanent Employee
Fixed-Term Employee
Probationary Period
Working Day
Working Hours
Overtime
Basic Salary
Allowances
Benefits
BPJS Ketenagakerjaan
BPJS Kesehatan
Annual Leave
Sick Leave
Religious Holiday Leave
Force Majeure
Grievance
Industrial Dispute
Disciplinary Action
Termination
Severance Pay
Long Service Pay
Compensation Pay
Workplace
Work Unit
Department
Immediate Supervisor
Management
Company Premises
Company Policies
Work Rules
Collective Bargaining
Strike
Lock-out
Transfer
Promotion
Demotion
Performance Evaluation
Training Period
Official Travel
Confidential Information
Intellectual Property
Work Safety Equipment
Medical Certificate
Notice Period
Gross Misconduct
Work Accident
Clauses
Recognition and Scope
Term and Duration
Working Hours
Overtime
Wages and Salary
Bonuses and Incentives
Allowances
Social Security
Healthcare Benefits
Leave Entitlements
Public Holidays
Performance Management
Training and Development
Health and Safety
Disciplinary Procedures
Grievance Procedures
Union Rights
Strike and Lockout
Termination
Severance
Transfer and Promotion
Non-Discrimination
Anti-Harassment
Confidentiality
Intellectual Property
Work Rules
Dispute Resolution
Force Majeure
Amendment
Governing Law
Notices
Entire Agreement
Relevant Industries

Manufacturing

Mining

Construction

Textile Industry

Agriculture

Technology

Financial Services

Retail

Transportation

Hospitality

Healthcare

Education

Telecommunications

Energy and Resources

Food and Beverage

Relevant Teams

Human Resources

Legal

Industrial Relations

Compliance

Operations

Administration

Senior Management

Labor Relations

Employee Relations

Compensation and Benefits

Relevant Roles

HR Director

Legal Counsel

Industrial Relations Manager

Compliance Officer

HR Manager

Union Representative

Labor Relations Specialist

Chief Operating Officer

Plant Manager

Department Head

Operations Manager

General Manager

Chief Executive Officer

Administrative Manager

Compensation and Benefits Manager

Industries
Law No. 13 of 2003 on Manpower: The primary employment law in Indonesia that regulates fundamental aspects of employment relationships, including working conditions, rights and obligations of employers and employees, and basic employment terms
Law No. 21 of 2000 on Trade Unions: Regulates the formation and operation of trade unions, their rights and responsibilities, and protection of union activities in Indonesia
Law No. 2 of 2004 on Industrial Relations Dispute Settlement: Provides the framework for resolving industrial disputes, including mechanisms for mediation, conciliation, and arbitration
Government Regulation No. 78 of 2015 on Wages: Details regulations regarding wage structures, minimum wage implementation, and wage payment procedures
Law No. 40 of 2004 on National Social Security System: Establishes mandatory social security coverage for employees, including health insurance and employment benefits
Law No. 1 of 1970 on Work Safety: Provides basic requirements for workplace safety and health protection measures
Minister of Manpower Regulation No. 28 of 2014: Specifies procedures for creating and registering collective labor agreements between employers and labor unions
Government Regulation No. 35 of 2021: Implements specific provisions of the Job Creation Law (Omnibus Law) relating to fixed-term employment, outsourcing, and termination procedures
Minister of Manpower Regulation No. 2 of 2019: Regulates the registration and requirements for labor unions to participate in collective bargaining
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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