The Master Employment Contract serves as a foundational template for establishing employment relationships in Indonesia, designed to comply with Law No. 13 of 2003 on Manpower and subsequent regulations. This document is typically used when companies need a standardized employment agreement that can be adapted for various positions while ensuring compliance with Indonesian labor laws. The contract incorporates mandatory provisions regarding working hours, wages, social security benefits (BPJS), leave entitlements, and termination procedures, as required by Indonesian regulations. It also includes provisions for confidentiality, intellectual property protection, and company policy compliance, making it suitable for both standard and specialized employment arrangements. The Master Employment Contract structure allows for customization while maintaining legal compliance through schedules and appendices that can be modified based on specific employment terms.
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1. Parties: Identification of the employer and employee with complete legal names and addresses
2. Background: Context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Appointment and Position: Job title, role description, and terms of appointment
5. Commencement and Duration: Start date and term of employment (permanent or fixed-term)
6. Duties and Responsibilities: Detailed description of the employee's main duties and obligations
7. Working Hours and Location: Standard working hours, location, and overtime provisions as per Indonesian labor law
8. Remuneration and Benefits: Salary, mandatory allowances, and benefits structure
9. Leave Entitlements: Annual leave, sick leave, religious holidays, and other statutory leave rights
10. Social Security: BPJS Healthcare and Employment participation as required by law
11. Confidentiality: Protection of company confidential information
12. Code of Conduct: Expected behavior and compliance with company policies
13. Termination: Grounds for termination and procedures in accordance with Indonesian labor law
14. Governing Law: Confirmation of Indonesian law application and dispute resolution
15. Entire Agreement: Integration clause and relationship to company policies
1. Probation Period: Terms of probationary period - only for permanent employment contracts
2. Mobility Clause: Required for positions that may involve relocation or frequent travel
3. Intellectual Property Rights: For roles involving creative work or innovation
4. Non-Competition: Post-employment restrictions - must be reasonable and limited in scope
5. Performance Reviews: Details of performance evaluation process - for management positions
6. Commission Structure: For sales or performance-based roles
7. Training Requirements: For positions requiring specific certifications or ongoing training
8. Remote Working Provisions: For positions allowing work from home arrangements
1. Schedule 1 - Job Description: Detailed breakdown of role responsibilities and requirements
2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits
3. Schedule 3 - Company Policies: Key company policies incorporated by reference
4. Schedule 4 - Performance Metrics: KPIs and performance evaluation criteria
5. Schedule 5 - Leave Policy: Detailed leave application and approval procedures
6. Appendix A - Code of Conduct: Detailed company code of conduct
7. Appendix B - Confidentiality Agreement: Detailed confidentiality obligations
8. Appendix C - Benefits Summary: Summary of all employee benefits and eligibility criteria
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