Job Agreement Contract Template for Indonesia

The Job Agreement Contract serves as the primary document governing the employment relationship in Indonesia, required under Law No. 13 of 2003 on Manpower and subsequent regulations. This document is essential when hiring new employees, whether on a permanent or fixed-term basis, and must be executed before or at the commencement of employment. It establishes clear terms and conditions while ensuring compliance with Indonesian labor laws, including mandatory provisions regarding working hours, minimum wage, social security benefits, and leave entitlements. The agreement protects both employer and employee interests by clearly defining rights, obligations, and expectations while maintaining alignment with local legal requirements and recent regulatory updates through the Omnibus Law.

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

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: Specification of whether the contract is permanent or fixed-term, including start date and duration if applicable

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

6. Place of Work: Location(s) where the employee will perform their duties

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 allowances, bonuses, and other benefits

9. Leave Entitlements: Annual leave, sick leave, religious holiday leave, and other statutory leave requirements

10. Social Security: BPJS participation and other mandatory insurance coverage

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

12. Intellectual Property: Ownership and rights regarding work products and inventions

13. Termination: Grounds and procedures for contract termination, notice periods, and severance calculations

14. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictional matters

15. Dispute Resolution: Procedures for resolving employment-related disputes

16. Entire Agreement: Statement that the contract represents the complete agreement between parties

17. Execution: Signature blocks and execution requirements