The Employment Contract Extension Addendum is a crucial document used in Indonesian employment relationships when an employer wishes to extend the duration of an existing employment contract. This document is particularly relevant for fixed-term employment contracts (PKWT) under Indonesian law, where extensions must comply with specific regulatory requirements outlined in the Manpower Law and Government Regulation No. 35 of 2021. The addendum should be prepared and executed before the expiration of the current employment contract, specifying the extended duration and any modified terms while ensuring compliance with maximum extension periods permitted under Indonesian law. It serves as a legally binding amendment to the original employment agreement, maintaining legal certainty for both employer and employee.
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1. Parties: Identification of the employer and employee, including their complete legal names and addresses
2. Background: Reference to the original employment agreement, its date, and the basis for extension
3. Definitions: Key terms used in the addendum, particularly those relating to the extension
4. Extension Period: Clear specification of the new employment period duration
5. Continued Terms: Confirmation that all other terms and conditions from the original agreement remain in effect
6. Governing Law: Confirmation that Indonesian law governs the addendum
7. Execution: Signature blocks for both parties and date of execution
1. Modified Terms: Used when any terms besides duration are being modified, such as salary, position, or benefits
2. Performance Criteria: Include when the extension is contingent on specific performance metrics or objectives
3. Compliance Statement: Added when needed to explicitly state compliance with specific Indonesian labor regulations
4. Non-Competition: Include if adding or modifying non-compete provisions, ensuring compliance with Indonesian law
5. Confidentiality: Used when adding or updating confidentiality obligations
1. Schedule A - Compensation Details: Details of any modified salary, benefits, or compensation structure
2. Schedule B - Job Description: If the role or responsibilities have been modified
3. Schedule C - Performance Metrics: Specific performance criteria or KPIs if applicable to the extension
4. Appendix 1 - Required Regulatory Disclosures: Any mandatory disclosures required under Indonesian labor law for contract extensions
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