This One Year Employment Contract template is designed for use in Indonesia when establishing fixed-term employment relationships under Indonesian labor law. It is particularly suitable for positions where a defined contract period is preferred or required by business needs. The document ensures compliance with Law No. 13 of 2003 on Manpower, the Job Creation Law of 2020, and related implementing regulations, particularly Government Regulation No. 35 of 2021. It includes all mandatory provisions required by Indonesian law, such as working conditions, compensation structures, social security requirements, and termination procedures. This template is commonly used for project-based work, seasonal employment, or roles with specific duration requirements, and can be customized to accommodate various industries and position levels while maintaining legal compliance.
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1. Parties: Identification of the employer and employee with 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: One-year duration, start date, and any probationary period details
6. Working Hours and Location: Standard working hours, location, and overtime provisions
7. Compensation and Benefits: Salary, allowances, and mandatory benefits as per Indonesian law
8. Leave Entitlements: Annual leave, sick leave, and other statutory leave rights
9. Confidentiality: Protection of company confidential information
10. Intellectual Property: Ownership of work created during employment
11. Social Security and Insurance: BPJS participation and other insurance provisions
12. Termination: Grounds for termination and procedures as per Indonesian law
13. Governing Law: Application of Indonesian law and jurisdiction
14. Entire Agreement: Integration clause and amendment procedures
1. Non-Competition: Restrictions on working for competitors, used for senior positions or roles with access to sensitive information
2. Non-Solicitation: Restrictions on soliciting employees or customers, typically for sales or management roles
3. Mobility Clause: Requirement to work at different locations, used when job may require relocation
4. Performance Reviews: Structure and timing of performance evaluations, used for roles with clear KPIs
5. Commission Structure: Details of sales commission or performance bonuses, used for sales roles
6. Language Provision: Dual language provisions and controlling language, used when contract is bilingual
7. Remote Work Provisions: Terms for remote working arrangements, used for hybrid or remote positions
1. Job Description: Detailed outline of role responsibilities and requirements
2. Compensation Structure: Breakdown of salary components, allowances, and benefits
3. Company Policies: Key company policies that form part of the employment terms
4. Code of Conduct: Expected behavioral standards and ethical guidelines
5. Performance Metrics: Specific KPIs and performance expectations for the role
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