Employment Service Agreement Template for Indonesia

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Key Requirements PROMPT example:

Employment Service Agreement

"I need an Employment Service Agreement for a senior software developer position in Jakarta, Indonesia, starting March 1, 2025, with strong IP protection clauses and provisions for remote work arrangements."

Document background
The Employment Service Agreement serves as the primary document governing the employment relationship in Indonesia, establishing legally binding terms between employers and employees. This agreement is essential for ensuring compliance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and its implementing regulations. It should be used when hiring both permanent and fixed-term employees, incorporating mandatory provisions required by Indonesian law while allowing for customization based on the specific employment relationship. The document covers crucial aspects such as compensation, benefits, working conditions, and termination procedures, while ensuring alignment with local labor practices and regulatory requirements. It's particularly important as Indonesian employment law strongly favors employee protection and requires specific provisions to be explicitly stated in employment agreements.
Suggested Sections

1. Parties: Identification of the employer and employee, including complete legal names and addresses

2. Background: Context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Appointment and Duration: Position title, employment status (permanent/fixed-term), and commencement date

5. Duties and Responsibilities: Detailed description of the employee's role, reporting lines, and key responsibilities

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

7. Remuneration and Benefits: Salary, mandatory benefits (including THR), and other compensation elements

8. Leave Entitlements: Annual leave, sick leave, religious holidays, and other permitted absences

9. Social Security and Insurance: BPJS participation and other insurance coverage

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

11. Code of Conduct: Expected behavioral standards and compliance with company policies

12. Termination: Grounds for termination, notice periods, and severance requirements

13. Governing Law: Specification of Indonesian law as governing law and dispute resolution procedures

Optional Sections

1. Probationary Period: Terms of initial probation period - optional for permanent employees, not applicable for fixed-term contracts

2. Intellectual Property Rights: IP ownership and assignment provisions - relevant for creative, technical, or senior roles

3. Non-Competition: Post-employment competition restrictions - typically for senior positions or specialized roles

4. Mobility Clause: Provisions for potential relocation or travel - relevant for positions requiring mobility

5. Performance Reviews: Structure and frequency of performance evaluations - for companies with formal review processes

6. Training Requirements: Mandatory training and professional development obligations - for regulated professions or specialized roles

7. Language Requirements: Required language proficiency and testing - relevant for multinational companies or customer-facing roles

Suggested Schedules

1. Schedule 1 - Job Description: Detailed breakdown of position responsibilities and requirements

2. Schedule 2 - Compensation Structure: Detailed breakdown of salary components, allowances, and benefits

3. Schedule 3 - Company Policies: Key company policies that form part of the employment terms

4. Schedule 4 - Working Hours and Overtime Calculation: Detailed working hours, shift patterns, and overtime computation if applicable

5. Schedule 5 - Leave Policy: Detailed leave policies and procedures

6. Appendix A - Confidential Information: Specific list of information considered confidential

7. Appendix B - Required Certifications: List of mandatory certifications or qualifications for the role

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

Construction

Mining

Agriculture

Hospitality

Transportation

Professional Services

Energy

Telecommunications

Consumer Goods

Real Estate

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research and Development

Production

Quality Assurance

Customer Service

Administration

Procurement

Corporate Communications

Business Development

Relevant Roles

Chief Executive Officer

Managing Director

General Manager

Department Head

Senior Manager

Project Manager

Technical Specialist

Sales Executive

Administrative Officer

Human Resources Manager

Financial Controller

Operations Manager

Marketing Executive

Customer Service Representative

Research Analyst

Software Developer

Production Supervisor

Quality Control Inspector

Account Manager

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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