Service Occupancy Agreement Template for Indonesia

A Service Occupancy Agreement under Indonesian law is a specialized contract that combines elements of employment and accommodation arrangements. It establishes the terms and conditions under which an employee is granted the right to occupy residential property as part of their employment package. The agreement is governed by Indonesian civil law, employment regulations, and property legislation, including the Indonesian Civil Code (KUHPerdata) and Law No. 13 of 2003 on Manpower. It details the rights and obligations of both employer and employee regarding property occupation, maintenance responsibilities, termination conditions, and the direct link between continued employment and accommodation rights.

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What is a Service Occupancy Agreement?

The Service Occupancy Agreement is essential for organizations in Indonesia that provide residential accommodation to employees as part of their employment package. This document is commonly used when an employee's presence at or near the workplace is necessary for the effective performance of their duties or when accommodation is provided as a significant employment benefit. The agreement must comply with Indonesian legal requirements, including the Civil Code, Manpower Law, and relevant property regulations. It establishes clear terms for property occupation, maintenance responsibilities, and termination conditions, while explicitly linking the right to occupy the property with continued employment. The document is particularly important for protecting both employer and employee interests in situations where accommodation is an integral part of the employment relationship.

What sections should be included in a Service Occupancy Agreement?

1. Parties: Identification of the employer/property owner and the employee/occupier

2. Background: Context of the agreement, including the employment relationship and purpose of the service occupancy

3. Definitions: Key terms used throughout the agreement including 'Property', 'Service Occupancy', 'Employment Agreement', etc.

4. Grant of License: Terms of the license to occupy the property, explicitly linking it to employment

5. Duration: Period of occupancy tied to employment duration

6. Occupier's Obligations: Core responsibilities including maintenance, permitted use, and conduct requirements

7. Employer's Obligations: Responsibilities for property maintenance, repairs, and services provision

8. Property Rules: Specific rules regarding use of property, visitors, and prohibited activities

9. Utilities and Services: Arrangements for payment of utilities and provision of services

10. Termination: Circumstances leading to termination, including end of employment

11. Vacation of Property: Process and requirements for vacating the property upon termination

12. Governing Law: Specification of Indonesian law as governing law and jurisdiction

What sections are optional to include in a Service Occupancy Agreement?

1. Additional Occupants: Required when family members or other authorized persons will reside in the property

2. Furniture and Fittings: Include when the property is provided furnished

3. Special Duties: Required when specific property-related duties are part of employment

4. Insurance Requirements: Include when occupier must maintain specific insurance coverage

5. Security Deposit: Include if a security deposit is required from the occupier

6. Pets Policy: Include if specific rules about pets need to be established

7. Alterations and Improvements: Required when allowing or restricting property modifications

8. Emergency Procedures: Include for properties with specific emergency protocols

What schedules should be included in a Service Occupancy Agreement?

1. Property Description: Detailed description of the property including address and included areas

2. Inventory: List of furniture, appliances, and fittings provided with the property

3. Property Rules and Regulations: Detailed rules for property use and maintenance

4. Utility Payment Schedule: Breakdown of utility responsibilities and payment arrangements

5. Maintenance Schedule: Regular maintenance tasks and responsibilities

6. Service Duties: Detailed description of any property-related duties linked to employment

7. Condition Report: Initial condition of the property and any existing damage

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

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Service Agreement

Cost

Free to use

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