Document background
The Employment Memorandum of Understanding is utilized in Indonesian business practice as a preliminary document to establish the basic framework of an employment relationship before finalizing a formal employment contract. This document is particularly useful during recruitment processes and negotiations, allowing both parties to confirm their mutual understanding of key employment terms. The MOU must align with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and its implementing regulations, while addressing fundamental aspects such as position, compensation, working hours, and basic obligations. While not as detailed as a full employment agreement, this document serves as a crucial stepping stone in the hiring process and provides a foundation for the subsequent employment relationship.
