Retainer Employment Contract Template for Indonesia

This document is a comprehensive employment agreement governed by Indonesian law, specifically designed for retainer-based employment relationships. It incorporates key requirements from Indonesian Labor Law No. 13 of 2003 and related regulations, including mandatory provisions for employment terms, statutory benefits, and worker protections. The agreement establishes the framework for an ongoing employment relationship, detailing compensation, benefits, working conditions, and obligations of both parties while ensuring compliance with local labor regulations, social security requirements, and relevant employment standards in Indonesia.

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What is a Retainer Employment Contract?

The Retainer Employment Contract serves as a formal agreement between an employer and employee in Indonesia, establishing a continuous employment relationship with regular compensation and benefits. This document is particularly suitable for permanent or long-term employment arrangements where the employee provides ongoing services to the company. It must comply with Indonesian Labor Law No. 13 of 2003, Government Regulation No. 35 of 2021, and related employment regulations, including mandatory provisions for social security (BPJS), leave entitlements, and worker protections. The contract includes essential terms such as position, duties, compensation, benefits, working hours, and termination provisions, while addressing specific requirements under Indonesian employment law. It's designed to protect both employer and employee interests while ensuring legal compliance in the Indonesian jurisdiction.

What sections should be included in a Retainer Employment Contract?

1. Parties: Identification of the employer and employee, including their legal details 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: Details of the role, position, and scope of employment

5. Duration of Employment: Term of the retainer agreement, including start date and any renewal provisions

6. Duties and Responsibilities: Detailed description of the employee's role, responsibilities, and reporting structure

7. Working Hours and Location: Specified working hours, days, and primary work location

8. Remuneration: Base salary, payment schedule, and method of payment

9. Statutory Benefits: Mandatory benefits under Indonesian law including BPJS Healthcare and Employment

10. Leave Entitlements: Annual leave, sick leave, and other statutory leave provisions

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

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

13. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after employment

14. Termination: Grounds and procedures for termination, notice periods, and severance provisions

15. Governing Law: Specification of Indonesian law as governing law

16. Dispute Resolution: Process for resolving employment-related disputes

17. Entire Agreement: Integration clause and relationship to other agreements

What sections are optional to include in a Retainer Employment Contract?

1. Probationary Period: Terms of initial probationary period - include if applicable for permanent employment

2. Performance Review: Process and frequency of performance evaluations - include if regular reviews are part of employment terms

3. Additional Benefits: Non-statutory benefits such as bonuses, allowances, or insurance - include if offering above statutory minimum

4. International Travel: Terms related to international travel requirements - include if position requires travel

5. Remote Working: Provisions for remote work arrangements - include if allowing work from home or flexible location

6. Training and Development: Professional development and training obligations - include if specific training requirements exist

7. Company Policies: Reference to specific company policies - include if employer has extensive internal policies

8. Data Protection: Specific provisions for handling personal data - include if role involves significant data processing

9. Secondary Employment: Rules regarding other employment or business activities - include if concerns about outside activities exist

What schedules should be included in a Retainer Employment Contract?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and performance expectations

2. Schedule 2 - Remuneration Structure: Breakdown of salary components, allowances, and benefits

3. Schedule 3 - Company Policies Reference: List of applicable company policies and procedures

4. Schedule 4 - Confidential Information: Specific details of what constitutes confidential information

5. Schedule 5 - Performance Metrics: Key performance indicators and evaluation criteria

6. Appendix A - Required Statutory Benefits: Details of mandatory benefits under Indonesian law

7. Appendix B - Additional Benefits: Details of any additional company-specific benefits

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Cost

Free to use

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