Document background
The Individual Employment Agreement serves as the foundational document establishing an employment relationship in Indonesia. It is required for both fixed-term and permanent employment arrangements under Indonesian law, particularly Law No. 13 of 2003 on Manpower. This agreement should be used when hiring new employees or formalizing existing employment relationships in Indonesia. It must include mandatory provisions required by Indonesian labor law while allowing customization for specific roles and company requirements. The document typically covers essential employment terms, statutory benefits, and company-specific provisions, ensuring compliance with local regulations while protecting both employer and employee interests. For foreign companies, the agreement must be executed through their Indonesian legal entity and should be prepared in both English and Bahasa Indonesia, with the Indonesian version prevailing in case of discrepancies.
