Employment Services Contract Template for Indonesia

The Employment Services Contract is a fundamental legal document used in Indonesia to formalize the employment relationship between an employer and an employee. This document is essential for businesses operating in Indonesia and must strictly comply with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and the Job Creation Law of 2020. It should be used when hiring new employees, whether on a permanent or fixed-term basis, and includes critical information about employment terms, remuneration, benefits, and obligations of both parties. The contract serves as a crucial reference point throughout the employment relationship and helps ensure compliance with local employment regulations while protecting both employer and employee interests.

1. Parties: Identification of the employer and employee, including full legal names, addresses, and registration details for the employer

2. Background: Brief context of the employment relationship, including the position being offered and general purpose of the agreement

3. Definitions: Key terms used throughout the agreement, ensuring clear interpretation of contract provisions

4. Appointment and Term: Details of the position, employment status (permanent/fixed-term), and commencement date

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

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

7. Remuneration and Benefits: Salary details, payment schedule, and mandatory benefits as per Indonesian law

8. Leave Entitlements: Annual leave, sick leave, religious holiday leave, and other statutory leave provisions

9. Confidentiality: Obligations regarding company confidential information and trade secrets

10. Intellectual Property: Ownership and rights related to work created during employment

11. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after employment

12. Termination: Grounds for termination, notice periods, and severance requirements as per Indonesian law

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