Fixed Term Agreement Template for Indonesia

This Fixed Term Agreement template is specifically designed for use in Indonesia, where fixed-term employment contracts (known as 'PKWT' - Perjanjian Kerja Waktu Tertentu) are strictly regulated under Law No. 13 of 2003 on Manpower, as amended by the Job Creation Law No. 11 of 2020. The document is essential for employers seeking to establish temporary employment relationships for specific projects, seasonal work, or other time-bound activities. It includes all mandatory provisions required by Indonesian law, such as specific term limitations, compensation requirements, and employee protections. The agreement is particularly relevant for projects, temporary positions, or roles that are genuinely temporary in nature, as Indonesian law restricts the use of fixed-term contracts to specific circumstances and durations.

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

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Term of Employment: Specific start and end dates of the fixed-term employment period, in compliance with Indonesian law maximum duration requirements

5. Position and Duties: Detailed description of the employee's role, responsibilities, and reporting relationships

6. Work Location: Specification of the primary workplace and any potential alternative locations

7. Working Hours: Standard working hours, rest periods, and overtime arrangements in compliance with Indonesian labor law

8. Compensation and Benefits: Details of salary, mandatory benefits, and payment arrangements

9. Leave Entitlements: Annual leave, sick leave, and other leave entitlements as per Indonesian law

10. Social Security: BPJS Healthcare and Employment participation requirements

11. Confidentiality: Obligations regarding company confidential information

12. Intellectual Property: Ownership and rights to work product created during employment

13. Termination: Grounds and procedures for contract termination in accordance with Indonesian law

14. Governing Law: Specification of Indonesian law as governing law

15. Execution: Signature blocks and execution details