This Full Time Employment Contract template is designed for use by companies operating in Indonesia when hiring permanent employees. It ensures compliance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and its amendments under the Omnibus Law (Law No. 11 of 2020). The document should be used when establishing permanent employment relationships and includes all mandatory provisions required by Indonesian law, such as working conditions, remuneration, leave entitlements, and termination procedures. It also addresses social security obligations (BPJS), confidentiality requirements, and intellectual property rights. The agreement can be customized for different positions and industries while maintaining compliance with local employment regulations.
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1. Parties: Identification of the employer company and the employee, including their complete legal names and addresses
2. Background: Brief context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Position and Duties: Employee's job title, role, responsibilities, and reporting structure
5. Term of Employment: Commencement date, probationary period if applicable, and nature of employment
6. Working Hours and Location: Standard working hours, work location, and overtime provisions
7. Compensation and Benefits: Base salary, allowances, bonuses, and statutory benefits including BPJS participation
8. Leave Entitlements: Annual leave, sick leave, religious holiday leave, and other statutory leave provisions
9. Confidentiality: Protection of company's confidential information and trade secrets
10. Intellectual Property: Ownership of work products and innovations created during employment
11. Code of Conduct: Expected behavior, compliance with company policies and procedures
12. Termination: Grounds for termination, notice periods, and severance provisions as per Indonesian law
13. Governing Law: Confirmation of Indonesian law as governing law and dispute resolution procedures
1. Non-Competition: Restrictions on working with competitors after employment ends - optional and must be reasonable in scope
2. Non-Solicitation: Restrictions on soliciting company's employees or clients - use when employee has access to sensitive client information
3. Mobility Clause: Provisions for potential relocation or transfer - include for positions that may require geographical mobility
4. Training Requirements: Specific training obligations and potential bond periods - use when company provides specialized training
5. Commission Structure: Detailed commission calculations and terms - include for sales or commission-based roles
6. Remote Work Provisions: Terms and conditions for remote working arrangements - include if remote work is permitted
7. Performance Metrics: Specific KPIs and performance evaluation criteria - use for performance-based positions
8. Language Provision: Dual language clause and prevailing version - include if contract is in both Indonesian and English
1. Schedule 1 - Job Description: Detailed description of roles, responsibilities, and performance expectations
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 - Confidential Information: Specific details of what constitutes confidential information
5. Schedule 5 - BPJS Benefits: Details of social security and health insurance coverage
6. Appendix A - Code of Conduct: Comprehensive company code of conduct
7. Appendix B - Leave Policy: Detailed leave application and approval procedures
8. Appendix C - IT Policy: Guidelines for use of company IT resources and systems
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