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An Enterprise Agreement sets the key employment terms between a company and its workers in Indonesia, replacing individual contracts with a single standardized agreement. It covers essential workplace conditions like wages, hours, leave entitlements, and dispute resolution procedures under Indonesia's Manpower Law No. 13/2003.

These agreements help businesses manage their workforce efficiently while protecting employee rights. To be valid, they must be registered with the Ministry of Manpower, negotiated with labor unions or worker representatives, and meet minimum standards set by Indonesian labor regulations. They typically last for 2-3 years before requiring renewal.

Consider implementing an Enterprise Agreement when your Indonesian company employs more than 10 workers or operates across multiple locations. This standardized approach becomes especially valuable during rapid growth phases, acquisitions, or when managing diverse worker categories under one unified policy.

The agreement proves essential for companies seeking to streamline HR processes, prevent workplace disputes, and maintain consistent employment terms. It's particularly important when expanding operations, establishing new facilities, or merging with other businesses—situations where clear, legally-compliant workplace standards become crucial for smooth operations and regulatory compliance.

• Basic Enterprise Agreement: Covers standard employment terms, wages, and working hours for companies with straightforward operations
• Multi-site Enterprise Agreement: Designed for businesses operating across multiple locations in Indonesia, with location-specific provisions
• Industry-specific Agreement: Contains specialized terms for sectors like manufacturing, mining, or technology, addressing unique operational needs
• Mixed-workforce Agreement: Accommodates different worker categories (permanent, contract, shift workers) under one comprehensive framework
• Subsidiary Enterprise Agreement: Tailored for Indonesian subsidiaries of multinational companies, balancing local requirements with global policies

• Company Management: Initiates and oversees the agreement development, ensuring alignment with business goals and Indonesian labor laws
• HR Directors: Lead the drafting process and manage implementation across the organization
• Labor Unions: Negotiate terms on behalf of workers and ensure fair representation under Law No. 13/2003
• Legal Counsel: Reviews and refines agreement terms to ensure compliance with Indonesian regulations
• Ministry of Manpower: Reviews, registers, and validates the agreement's compliance with labor laws
• Employees: Bound by and benefit from the agreement's terms and conditions

• Company Details: Gather current employee count, locations, and business activities across Indonesia
• Workforce Analysis: Document existing employment terms, benefits, and worker categories
• Legal Requirements: Review current Manpower Law standards and sector-specific regulations
• Union Consultation: Schedule meetings with worker representatives to discuss proposed terms
• Draft Development: Use our platform to generate a legally-compliant agreement template
• Internal Review: Circulate draft among key stakeholders for feedback
• Documentation: Prepare supporting materials for Ministry of Manpower registration

• Company Identity: Full legal name, business registration details, and operational addresses
• Employment Terms: Working hours, wages, overtime rates, and leave entitlements per Law No. 13/2003
• Benefits Package: Health insurance, social security (BPJS), and additional company-specific benefits
• Dispute Resolution: Clear procedures for handling workplace conflicts and grievances
• Termination Conditions: Valid grounds and procedures for employment termination
• Union Recognition: Rights and responsibilities of worker representatives
• Duration Clause: Agreement validity period and renewal terms
• Signatures Section: Authorized company representatives and worker representatives

An Enterprise Agreement differs significantly from an Enterprise Bargaining Agreement in several key ways, though they're often confused in Indonesian business contexts. While both deal with workplace relations, their scope and application vary considerably.

• Legal Foundation: Enterprise Agreements operate under Indonesia's Manpower Law No. 13/2003 as comprehensive workplace policies, while Enterprise Bargaining Agreement focuses specifically on negotiated terms between unions and employers
• Coverage Scope: Enterprise Agreements cover all workplace policies and procedures across an organization, while Enterprise Bargaining Agreements typically address specific negotiated items like wages and conditions
• Duration and Flexibility: Enterprise Agreements offer broader operational flexibility and longer terms (2-3 years), while Enterprise Bargaining Agreements often require more frequent renegotiation
• Implementation Process: Enterprise Agreements need simple Ministry registration, while Enterprise Bargaining Agreements require formal bargaining procedures and union involvement