Management Employment Contract Template for Indonesia

The Management Employment Contract is a specialized employment agreement used for hiring and retaining senior personnel in Indonesia. This document is essential when engaging managers, directors, or executives in Indonesian companies, whether local or foreign-owned. It provides a comprehensive framework for the employment relationship, incorporating requirements under Indonesian labor law, particularly Law No. 13 of 2003 on Manpower and related regulations. The contract is designed to protect both employer and employee interests while addressing specific aspects of management positions, including strategic responsibilities, performance expectations, confidentiality obligations, and executive compensation structures. It is particularly relevant for companies establishing or expanding their management team in Indonesia, and can be adapted for both local and expatriate managers while ensuring compliance with Indonesian employment regulations.

1. Parties: Identification of the employer company and the management employee

2. Background: Context of the employment relationship and brief description of the management position

3. Definitions: Key terms used throughout the agreement including Company, Confidential Information, Intellectual Property, etc.

4. Appointment and Term: Specification of the management position, duties, and duration of employment

5. Duties and Responsibilities: Detailed description of management role, reporting lines, and key performance areas

6. Working Hours and Location: Standard working arrangements while acknowledging flexibility required for management positions

7. Remuneration and Benefits: Base salary, bonuses, allowances, and other benefits including participation in management incentive schemes

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

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

10. Intellectual Property: Ownership and assignment of intellectual property created during employment

11. Non-Competition and Non-Solicitation: Post-employment restrictions on competitive activities and employee solicitation

12. Termination: Grounds and procedures for termination, notice periods, and severance payments

13. Governing Law: Specification of Indonesian law as governing law and jurisdiction

14. General Provisions: Standard boilerplate clauses including amendments, notices, and entire agreement