One Year Fixed Term Contract Template for Indonesia

This One Year Fixed Term Contract is designed for use in Indonesia when establishing temporary employment relationships that comply with Indonesian labor laws, particularly Law No. 13/2003 on Manpower and Government Regulation No. 35/2021. It is suitable for project-based work, seasonal employment, or temporary positions where the duration is clearly defined as one year. The document incorporates all mandatory provisions required by Indonesian law, including statutory benefits, social security obligations (BPJS), and relevant minimum wage requirements. It protects both employer and employee interests while ensuring compliance with local employment regulations, making it appropriate for various industries and position levels. The contract should be used when the nature of work fits within Indonesian legal requirements for fixed-term employment, particularly avoiding its use for permanent, ongoing work which legally requires a permanent employment agreement.

1. Parties: Identification of the employer and employee, including their legal addresses and relevant registration numbers

2. Background: Brief context of the employment relationship and confirmation of fixed-term nature

3. Definitions: Key terms used throughout the agreement

4. Term of Employment: Specific start and end dates of the fixed-term contract, in compliance with Indonesian maximum duration regulations

5. Position and Duties: Employee's job title, role, responsibilities, and reporting structure

6. Place of Work: Primary work location and any flexibility arrangements

7. Working Hours: Standard working hours, overtime provisions, and rest periods as per Indonesian labor law

8. Remuneration: Base salary, mandatory allowances, and payment schedule

9. Statutory Benefits: BPJS Healthcare, BPJS Employment, and other mandatory benefits under Indonesian law

10. Leave Entitlements: Annual leave, sick leave, public holidays, and other statutory leave rights

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

12. Intellectual Property: Ownership of work products and intellectual property created during employment

13. Performance Expectations: Performance standards, evaluation process, and consequences of underperformance

14. Termination: Grounds for termination and procedures in accordance with Indonesian labor law

15. Governing Law: Confirmation of Indonesian law as governing law and dispute resolution procedures