Terms Of Engagement Contract Template for Indonesia

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Key Requirements PROMPT example:

Terms Of Engagement Contract

"I need a Terms of Engagement Contract for hiring a senior software developer in Jakarta, Indonesia, with specific provisions for remote work arrangements and intellectual property protection for our tech startup."

Document background
The Terms of Engagement Contract serves as a fundamental legal document in Indonesian employment relationships, establishing clear terms and conditions between employers and employees. This document is essential when formalizing any employment relationship in Indonesia, whether for permanent, fixed-term, or specific project-based engagements. It must comply with Indonesian Labor Law (Law No. 13 of 2003 on Manpower), the Civil Code, and various implementing regulations, including recent amendments under the Omnibus Law. The contract typically includes mandatory provisions regarding working hours, wages, leave entitlements, social security benefits (BPJS), and termination procedures, while also addressing company-specific requirements and protecting both parties' interests through clear terms and conditions.
Suggested Sections

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

2. Background: Context of the engagement, brief description of the employer's business, and the purpose of the engagement

3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty

4. Scope of Engagement: Detailed description of the role, responsibilities, and duties of the employee

5. Term and Duration: Period of engagement, including start date and duration (fixed-term or permanent)

6. Work Location and Hours: Primary workplace location and standard working hours in compliance with Indonesian labor law

7. Compensation and Benefits: Salary, allowances, bonuses, and other benefits as required by Indonesian regulations

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

9. Confidentiality: Obligations regarding company confidential information and trade secrets

10. Intellectual Property: Ownership and rights to work product created during the engagement

11. Social Security and Insurance: Mandatory BPJS requirements and any additional insurance coverage

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

13. Dispute Resolution: Process for resolving disputes as per Law No. 2 of 2004

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

Optional Sections

1. Probation Period: Terms of probationary period - only for permanent employment contracts

2. Non-Competition: Post-employment restrictions - use only where specifically necessary and reasonable

3. Mobility Clause: Requirements for travel or relocation - include for positions requiring mobility

4. Performance Reviews: Structure and frequency of performance evaluations - for longer-term engagements

5. Training Requirements: Mandatory training and professional development obligations - for specialized roles

6. Commission Structure: Detailed commission calculations - for sales or performance-based roles

7. Remote Working Provisions: Terms for remote work arrangements - for flexible working arrangements

8. Equipment and Resources: Provisions regarding company-provided equipment - for roles requiring specific tools or technology

Suggested Schedules

1. Schedule 1 - Job Description: Detailed breakdown of roles, responsibilities, and reporting lines

2. Schedule 2 - Compensation Structure: Detailed breakdown of salary components, allowances, and benefits

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

4. Schedule 4 - Performance Metrics: Specific KPIs and performance evaluation criteria

5. Schedule 5 - Confidential Information: Detailed list of what constitutes confidential information

6. Appendix A - Required Documents: List of mandatory documents to be provided by the employee

7. Appendix B - Benefits Summary: Detailed description of all employee benefits and eligibility criteria

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

Technology

Manufacturing

Financial Services

Professional Services

Retail

Healthcare

Education

Construction

Mining

Agriculture

Telecommunications

Energy

Transportation

Hospitality

Media and Entertainment

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research and Development

Administration

Customer Service

Production

Quality Assurance

Business Development

Corporate Communications

Compliance

Relevant Roles

Chief Executive Officer

Managing Director

General Manager

Department Head

Senior Manager

Project Manager

Software Engineer

Financial Analyst

HR Manager

Marketing Executive

Sales Representative

Administrative Officer

Operations Manager

Research Analyst

Legal Counsel

Technical Specialist

Account Manager

Business Development Executive

Production Supervisor

Quality Control Officer

Industries
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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