Job Contract Agreement for Indonesia

Job Contract Agreement Template for Indonesia

An Indonesian Job Contract Agreement is a legally binding document that establishes an employment relationship between an employer and employee under Indonesian law, particularly in compliance with Law No. 13 of 2003 on Manpower and the Omnibus Law (Law No. 11 of 2020). This document outlines essential employment terms including position, duties, compensation, benefits, working hours, leave entitlements, and termination conditions. It incorporates mandatory provisions required by Indonesian labor laws while protecting both employer and employee interests through clear articulation of rights and obligations.

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What is a Job Contract Agreement?

The Job Contract Agreement serves as the primary document governing the employment relationship between companies and individuals in Indonesia. It is essential for establishing clear terms of employment while ensuring compliance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and its amendments under the Omnibus Law. This agreement should be used when hiring new employees, whether for permanent or fixed-term positions, and must include mandatory provisions regarding working conditions, compensation, benefits, and termination procedures as required by Indonesian regulations. The document provides legal protection for both parties and serves as a reference point for managing the employment relationship throughout its duration.

What sections should be included in a Job Contract Agreement?

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: Key terms used throughout the agreement

4. Position and Duties: Job title, role description, and primary responsibilities

5. Term of Employment: Duration of employment (whether fixed-term or permanent) and effective date

6. Probation Period: Length and terms of the probationary period, if applicable

7. Work Location: Primary workplace location and any mobility requirements

8. Working Hours: Standard working hours, overtime arrangements, and rest periods

9. Remuneration: Salary, payment schedule, and other monetary benefits

10. Leave Entitlements: Annual leave, sick leave, religious holidays, and other types of leave

11. Social Security: BPJS Healthcare and Employment participation details

12. Confidentiality: Protection of company confidential information

13. Intellectual Property: Ownership of work products and innovations

14. Termination: Grounds for termination and procedures

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

16. Dispute Resolution: Process for resolving employment-related disputes

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

18. Execution: Signature blocks and execution details

What sections are optional to include in a Job Contract Agreement?

1. Non-Competition: Restrictions on working for competitors, used for senior positions or roles with access to sensitive information

2. Relocation: Terms for potential relocation, included when job may require geographic mobility

3. Commission Structure: Details of commission-based compensation, included for sales or similar roles

4. Performance Bonus: Performance-based incentive structures, used for roles with bonus schemes

5. Remote Work: Provisions for working from home or remote locations, included if applicable

6. Training Requirements: Mandatory training programs and professional development requirements

7. Company Property: Rules regarding company equipment and resources, included when significant company assets are provided

8. International Travel: Terms for international travel and assignments, included for roles requiring travel

What schedules should be included in a Job Contract Agreement?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and reporting relationships

2. Schedule 2 - Compensation Details: 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 - Performance Metrics: Key performance indicators and evaluation criteria

5. Appendix A - Code of Conduct: Company's code of conduct and ethical requirements

6. Appendix B - Confidentiality Agreement: Detailed confidentiality terms and requirements

7. Appendix C - Benefits Summary: Summary of all employee benefits and eligibility criteria

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Clauses
Relevant Industries

Technology

Manufacturing

Financial Services

Retail

Healthcare

Education

Construction

Mining

Agriculture

Hospitality

Professional Services

Telecommunications

Energy

Transportation

Media and Entertainment

Relevant Teams

Human Resources

Legal

Finance

Operations

Administration

Management

Recruitment

Compliance

Employee Relations

Relevant Roles

Chief Executive Officer

Managing Director

General Manager

Department Head

Senior Manager

Project Manager

Software Engineer

Financial Analyst

Marketing Executive

Sales Representative

Administrative Assistant

Human Resources Officer

Operations Manager

Research Analyst

Product Manager

Customer Service Representative

Technical Support Specialist

Account Manager

Legal Counsel

Quality Assurance Specialist

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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