Revised Employment Contract Template for Indonesia

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Key Requirements PROMPT example:

Revised Employment Contract

"I need a Revised Employment Contract for my software developer who is being promoted to Senior Developer effective March 1, 2025, with a 25% salary increase and new remote work provisions under Indonesian law."

Document background
The Revised Employment Contract is used when substantial changes to an existing employment relationship necessitate a formal update to the employment agreement under Indonesian law. This document is typically required when there are significant modifications to an employee's role, compensation, working conditions, or when updating contracts to reflect new regulatory requirements or company policies. It must comply with Indonesian labor regulations, particularly the Manpower Law (Law No. 13 of 2003) and the Omnibus Law (Law No. 11 of 2020), while ensuring all mandatory employee protections remain in place. The contract serves as a comprehensive update that maintains the continuity of employment while clearly documenting all changes to the employment relationship.
Suggested Sections

1. Parties: Identification of the employer and employee with complete legal names and addresses

2. Background: Context of the employment relationship, including reference to original contract and reason for revision

3. Definitions: Key terms used throughout the agreement

4. Position and Duties: Job title, role description, responsibilities, and reporting structure

5. Term of Employment: Duration of employment (permanent/fixed-term) and effective date of revised contract

6. Work Location: Primary workplace and any flexibility arrangements

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

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

9. Benefits: Mandatory benefits including BPJS Health and Employment, leave entitlements, and other standard benefits

10. Confidentiality: Obligations regarding company confidential information

11. Intellectual Property: Ownership of work products and innovations

12. Termination: Grounds and procedures for termination, notice periods, and severance calculations

13. Governing Law: Confirmation of Indonesian law application and dispute resolution procedures

14. Amendment: Process for future modifications to the agreement

15. Entire Agreement: Confirmation that this revision supersedes previous versions while maintaining continuous employment

Optional Sections

1. Probation Period: For new positions or roles, defining trial period terms (if applicable under the revision)

2. Non-Competition: Restrictions on working with competitors (if appropriate for senior positions)

3. Non-Solicitation: Restrictions on soliciting employees or customers (for senior roles)

4. Performance Reviews: Structure and timing of performance evaluations and their impact

5. Mobility Clause: Terms for potential relocation or transfer between offices

6. Commission Structure: For sales or performance-based roles

7. Remote Work Provisions: Specific terms for remote or hybrid working arrangements

8. Training Requirements: Mandatory training programs and professional development expectations

9. Language Requirements: When contract is bilingual, specifying prevailing language

Suggested Schedules

1. Schedule A - Compensation Details: Detailed breakdown of salary components, allowances, and benefits

2. Schedule B - Job Description: Detailed position responsibilities and requirements

3. Schedule C - Company Policies: Key company policies that form part of employment terms

4. Schedule D - Performance Metrics: Specific KPIs and performance expectations

5. Schedule E - Benefits Summary: Detailed description of all benefits and eligibility conditions

6. Appendix 1 - Code of Conduct: Company's code of conduct and ethical standards

7. Appendix 2 - Compliance Requirements: Specific regulatory or industry compliance requirements

8. Appendix 3 - Leave Policy: Detailed leave entitlements and procedures

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 | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Technology

Financial Services

Retail

Healthcare

Education

Construction

Mining

Agriculture

Hospitality

Professional Services

Telecommunications

Energy

Transportation

E-commerce

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Research and Development

Customer Service

Administration

Production

Quality Assurance

Business Development

Strategy

Compliance

Relevant Roles

Chief Executive Officer

Managing Director

Department Manager

Senior Manager

Project Manager

Human Resources Director

Finance Manager

Operations Manager

Sales Executive

Marketing Manager

Technical Specialist

Software Engineer

Account Manager

Administrative Officer

Production Supervisor

Research Analyst

Legal Counsel

Customer Service Representative

Business Development Manager

Regional Manager

Industries
Law No. 13 of 2003 on Manpower: The main employment law in Indonesia that regulates employment relationships, including working conditions, rights and obligations of employers and employees, termination procedures, and other fundamental aspects of employment
Law No. 11 of 2020 on Job Creation (Omnibus Law): Recent major reform that amended various provisions of the Manpower Law, including changes to fixed-term employment contracts, outsourcing, and severance pay calculations
Government Regulation No. 35 of 2021: Implementing regulation for fixed-term employment agreements, outsourcing, working hours, rest periods, and termination of employment under the Omnibus Law
Law No. 40 of 2004 on National Social Security System: Regulates mandatory social security programs including health insurance, work accident insurance, old age benefits, pension benefits, and death benefits
Law No. 24 of 2011 on Social Security Administrative Bodies (BPJS): Establishes and regulates the implementation of social security programs through BPJS Employment and BPJS Health
Law No. 21 of 2000 on Labor Unions: Regulates the establishment and operations of labor unions, and protects workers' rights to organize
Law No. 2 of 2004 on Industrial Relations Dispute Settlement: Provides the framework for resolving employment disputes through bipartite negotiations, mediation, conciliation, and the industrial relations court
Minister of Manpower Regulation No. 4 of 2022: Latest regulation on the procedures for drafting and registering company regulations and collective labor agreements
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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