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Employment Offer Letter
I need an employment offer letter for a new hire in a marketing role, with a starting salary of IDR 10,000,000 per month, including standard benefits, a 3-month probation period with a 2-week notice, and eligibility for performance bonuses after the first year.
What is an Employment Offer Letter?
An Employment Offer Letter puts your job offer details in writing, forming the first official step toward an employment relationship under Indonesian labor law. It spells out the key terms you've discussed with your future employer, including your position, salary, start date, and basic working conditions.
Indonesian companies often use these letters alongside more detailed employment agreements to comply with Law No. 13 of 2003 on Manpower. While not legally required, a well-crafted offer letter helps protect both parties by clearly documenting initial employment terms before signing the formal contract. It also gives you a chance to review and negotiate conditions before accepting the position.
When should you use an Employment Offer Letter?
Use an Employment Offer Letter when you've found the right candidate and need to formalize your initial employment terms before drafting the full contract. This document proves especially valuable during recruitment of mid to senior-level positions in Indonesia, where salary negotiations and employment terms require clear documentation.
Companies typically send these letters after successful interviews but before final employment agreements. The timing helps lock in top talent while protecting both parties under Indonesian labor laws. It's particularly important when hiring for regulated industries, positions with complex compensation packages, or roles involving intellectual property and confidentiality commitments.
What are the different types of Employment Offer Letter?
- Part Time Job Offer Letter: Tailored for non-full-time positions with flexible hours and specific scheduling terms
- Temporary Job Offer Letter: Used for fixed-term contracts with clear end dates and project-specific details
- Hire Letter From Employer: Comprehensive version for permanent positions, including full benefits and career development terms
- Job Invitation Letter: Initial offer communication focusing on position overview and interview arrangements
- Job Offer Refusal Letter: Professional response declining candidates while maintaining positive relationships
Who should typically use an Employment Offer Letter?
- HR Directors and Managers: Draft and customize the Employment Offer Letter based on company policies and Indonesian labor regulations
- Company Directors or Department Heads: Review and approve offer terms, especially for senior positions or specialized roles
- Legal Department: Ensures compliance with Law No. 13/2003 and other relevant employment regulations
- Job Candidates: Review, negotiate, and accept the terms before proceeding to formal employment contracts
- External Legal Counsel: Often consulted for executive-level offers or complex employment arrangements in regulated industries
How do you write an Employment Offer Letter?
- Position Details: Compile job title, department, reporting structure, and key responsibilities aligned with Indonesian job classification standards
- Compensation Package: Calculate basic salary, mandatory benefits, allowances, and any performance-based incentives
- Employment Terms: Define work hours, location, probation period, and start date according to local labor laws
- Company Policies: Gather relevant workplace rules, confidentiality requirements, and intellectual property terms
- Approval Chain: Identify required internal signatories and ensure HR and department head alignment
- Document Generation: Use our platform to create a legally-compliant offer letter that includes all mandatory elements under Indonesian law
What should be included in an Employment Offer Letter?
- Company Information: Full legal name, address, and registration number as registered with Indonesian authorities
- Position Details: Job title, department, work location, and reporting relationships per Law No. 13/2003
- Compensation Structure: Basic salary, mandatory religious holiday allowance (THR), and any additional benefits
- Working Hours: Schedule, overtime policy, and rest periods following Indonesian labor regulations
- Employment Status: Contract type (permanent/fixed-term), probation period, and start date
- Acceptance Terms: Response deadline, signature blocks, and required supporting documents
- Legal Compliance: References to relevant labor laws and company policies
What's the difference between an Employment Offer Letter and an Employment Agreement?
An Employment Offer Letter differs significantly from an Employment Agreement in several key ways under Indonesian law. While both documents relate to employment relationships, they serve distinct purposes and carry different legal weights.
- Legal Status: Offer letters are preliminary documents outlining basic terms, while Employment Agreements are comprehensive, legally binding contracts required under Law No. 13/2003
- Timing: Offer letters come first during recruitment, followed by the formal Employment Agreement after acceptance
- Content Depth: Offer letters contain basic terms like position and salary, while Employment Agreements detail complete working conditions, obligations, and rights
- Enforceability: Employment Agreements provide full legal protection and enforcement mechanisms, while offer letters mainly serve as preliminary commitments
- Required Elements: Employment Agreements must include all mandatory provisions under Indonesian labor law, whereas offer letters can be more flexible in format
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