Registered Employment Agreement Template for Indonesia

The Registered Employment Agreement serves as a fundamental legal document for establishing employment relationships in Indonesia, complying with Law No. 13 of 2003 on Manpower and related regulations. This document is required for all formal employment arrangements in Indonesia and must be registered with the Ministry of Manpower. It includes mandatory provisions regarding working conditions, remuneration, social security participation, and employee rights as prescribed by Indonesian law. The agreement provides legal protection for both employers and employees while ensuring compliance with local labor regulations. It should be used when hiring new employees, converting temporary workers to permanent status, or updating existing employment terms. The document becomes legally binding upon registration and serves as the primary reference for the employment relationship.

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

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement, including statutory terms from Indonesian labor law

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

5. Term of Employment: Duration of employment (permanent or fixed-term) and any probationary period as per Indonesian law

6. Working Hours and Location: Standard working hours, work location, and provisions for overtime in accordance with labor regulations

7. Remuneration and Benefits: Salary, mandatory allowances, bonuses, and statutory benefits including BPJS participation

8. Leave Entitlements: Annual leave, sick leave, religious holiday leave, and other statutory leave provisions

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

10. Intellectual Property: Ownership and rights related to work-created intellectual property

11. Employee Obligations: Key responsibilities, compliance with company policies, and professional conduct requirements

12. Termination: Grounds for termination, notice periods, and severance calculations as per Indonesian law

13. Dispute Resolution: Process for resolving employment disputes in accordance with Law No. 2 of 2004

14. Governing Law: Confirmation of Indonesian law as governing law and relevant jurisdictional matters

15. Execution: Signature blocks and formal closing of the agreement