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Employment Contract Policy

Employment Contract Policy Template for Indonesia

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Key Requirements PROMPT example:

Employment Contract Policy

"I need an Employment Contract Policy for our new technology startup in Jakarta, launching in March 2025, that covers both office-based and remote workers, with particular focus on intellectual property protection and flexible working arrangements."

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Document background
The Employment Contract Policy serves as a foundational document for organizations operating in Indonesia, designed to establish clear and legally compliant employment relationships. This document is essential when setting up operations in Indonesia or updating existing employment policies to ensure alignment with current Indonesian labor laws, including Law No. 13 of 2003 on Manpower and related regulations. The policy provides comprehensive guidance on employment terms, working conditions, compensation, benefits, and other aspects of the employment relationship while incorporating specific Indonesian requirements such as religious holiday allowances (THR), mandatory social security participation (BPJS), and local leave entitlements. It is particularly crucial for organizations to implement this policy to maintain consistent employment practices across their operations while ensuring compliance with Indonesian labor regulations.
Suggested Sections

1. Parties: Identification of the employer and scope of employees covered by the policy

2. Background: Purpose and objectives of the employment policy

3. Definitions: Key terms used throughout the policy document

4. Employment Status: Classifications of employment (permanent, fixed-term, probation)

5. Working Hours and Attendance: Standard working hours, overtime policies, and attendance requirements

6. Compensation and Benefits: Salary structure, mandatory benefits, and payment procedures

7. Leave Entitlements: Annual leave, sick leave, religious holiday leave, and other permitted absences

8. Social Security and Insurance: BPJS requirements and other mandatory insurance coverage

9. Code of Conduct: Expected behavior, discipline, and professional standards

10. Termination Procedures: Grounds for termination and associated procedures

11. Dispute Resolution: Procedures for handling employment-related disputes

12. Confidentiality and IP: Protection of company information and intellectual property

13. Health and Safety: Workplace safety requirements and procedures

14. Amendment Procedures: Process for updating and modifying the policy

Optional Sections

1. Remote Working Arrangements: Policies for work-from-home or hybrid working arrangements, applicable for companies offering flexible work options

2. International Assignments: Specific provisions for employees sent on international assignments, relevant for multinational companies

3. Commission Structure: Detailed commission policies for sales or performance-based roles

4. Training and Development: Policies regarding professional development and mandatory training programs

5. Company Assets Usage: Rules regarding use of company equipment and resources, particularly relevant for companies providing significant tools or technology

6. Non-Competition: Non-compete clauses and restrictions, particularly relevant for senior positions or specialized industries

7. Relocation Policy: Terms for domestic relocation, applicable for companies with multiple locations

8. Religious Accommodations: Specific provisions for religious practices and accommodations

Suggested Schedules

1. Schedule 1 - Salary Grades and Benefits: Detailed breakdown of salary structures and benefits by employee grade

2. Schedule 2 - Leave Calculation Method: Detailed explanation of how various types of leave are calculated and prorated

3. Schedule 3 - Disciplinary Procedures: Step-by-step disciplinary processes and corresponding sanctions

4. Schedule 4 - Job Grade Classifications: Details of job grades and corresponding responsibilities

5. Schedule 5 - Overtime Calculation: Methods for calculating overtime pay and compensatory time off

6. Appendix A - Standard Forms: Templates for leave applications, grievance submissions, etc.

7. Appendix B - Code of Conduct Guidelines: Detailed examples of acceptable and unacceptable conduct

8. Appendix C - Safety Procedures: Detailed workplace safety protocols and emergency 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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Company
Employee
Permanent Employee
Fixed-Term Employee
Probationary Period
Working Day
Working Hours
Overtime
Basic Salary
Religious Holiday Allowance (THR)
BPJS Ketenagakerjaan
BPJS Kesehatan
Annual Leave
Sick Leave
Maternity Leave
Force Majeure
Termination
Resignation
Gross Misconduct
Confidential Information
Intellectual Property
Company Premises
Immediate Supervisor
Management
Department
Work Location
Remote Work
Official Travel
Company Policy
Code of Conduct
Disciplinary Action
Warning Letter
Performance Review
Employment Agreement
Collective Labor Agreement
Trade Union
Industrial Dispute
Minimum Wage
Regular Wages
Non-Competition
Work Permit
Social Security Programs
Company Assets
Workplace Safety
Sexual Harassment
Grievance
Clauses
Scope of Employment
Employment Status
Working Hours
Attendance and Punctuality
Compensation
Benefits
Religious Holiday Allowance (THR)
Social Security
Annual Leave
Sick Leave
Maternity Leave
Other Leave Entitlements
Performance Management
Training and Development
Code of Conduct
Disciplinary Procedures
Grievance Procedures
Confidentiality
Intellectual Property
Non-Competition
Non-Solicitation
Health and Safety
Remote Working
Business Travel
Use of Company Assets
Data Protection
Anti-Harassment and Discrimination
Conflict of Interest
Outside Employment
Termination
Resignation
Force Majeure
Dispute Resolution
Governing Law
Amendment Procedures
Company Policies Compliance
Medical Examination
Probationary Period
Work Location
Reporting Structure
Overtime
Public Holidays
Religious Observance
Relevant Industries

Manufacturing

Technology

Financial Services

Retail

Healthcare

Education

Construction

Mining

Agriculture

Hospitality

Professional Services

Telecommunications

Transportation

Energy

E-commerce

Relevant Teams

Human Resources

Legal

Compliance

Employee Relations

Recruitment

Compensation and Benefits

Training and Development

Operations

Administration

Executive Leadership

Industrial Relations

Relevant Roles

Human Resources Director

Legal Counsel

HR Manager

Compliance Officer

Employee Relations Manager

HR Business Partner

Recruitment Manager

Compensation and Benefits Manager

Training and Development Manager

Operations Director

Department Heads

Line Managers

Administrative Officers

Company Secretary

Managing Director

Industries
Law No. 13 of 2003 on Manpower: The main employment law in Indonesia covering fundamental aspects of employment relationships, including employment agreements, working conditions, termination, and workers' rights
Government Regulation No. 35 of 2021: Implementing regulation for fixed-term employment agreements, outsourcing, working hours, rest periods, and termination of employment
Law No. 40 of 2004 on National Social Security System: Regulates mandatory social security programs including health insurance, work accident insurance, old age benefits, pension benefits, and death benefits
Minister of Manpower Regulation No. 224 of 2019: Guidelines for implementation of Religious Holiday Allowance (THR) for workers/laborers in companies
Law No. 2 of 2004: Regulations on Industrial Relations Dispute Settlement procedures and mechanisms
Minister of Manpower Regulation No. 4 of 2020: Guidelines for implementing remote working arrangements in response to modern working conditions
Government Regulation No. 36 of 2021: Regulations on Wages including minimum wage determination and wage structure
Law No. 1 of 1970 on Work Safety: Basic regulations on occupational safety and health requirements in the workplace
Law No. 21 of 2000: Regulations on Labor Unions/Workers Unions including their formation, rights, and responsibilities
Minister of Manpower Regulation No. 5 of 2018: Regulations on Workplace Health and Safety including requirements for maintaining a safe working environment
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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