The Contract of Probationary Employment is a crucial document used when initiating new employment relationships in Indonesia. It serves as the primary agreement between an employer and a new employee during their initial probationary period, which is strictly limited to a maximum of three months under Indonesian Manpower Law (Law No. 13 of 2003). This document is essential for organizations looking to assess new hires' suitability for permanent positions while ensuring compliance with local labor regulations. The contract must explicitly state its probationary nature and include specific terms regarding evaluation criteria, compensation, and conditions for conversion to permanent employment. It's particularly important as Indonesian law requires probationary terms to be stated in writing to be legally valid.
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1. Parties: Identification of the employer and employee with complete legal names and addresses
2. Background: Brief context of the employment relationship and purpose of the probationary period
3. Definitions: Key terms used throughout the agreement
4. Position and Duties: Detailed description of the role, responsibilities, and reporting structure
5. Probationary Period: Duration of probation (maximum 3 months as per Indonesian law) and evaluation criteria
6. Working Hours and Location: Specified working hours, days, and place of work
7. Compensation and Benefits: Salary, allowances, and any applicable benefits during probation
8. Performance Evaluation: Assessment criteria and evaluation process during probation
9. Confidentiality: Protection of company information and trade secrets
10. Termination: Conditions for termination during probation period
11. Governing Law: Specification of Indonesian law as governing law
12. Signatures: Execution block for both parties
1. Intellectual Property Rights: Required if employee will be creating or working with proprietary information or innovations
2. Non-Competition: Optional clause restricting employee's ability to work with competitors (subject to Indonesian law limitations)
3. Training Requirements: Include if specific training is required during probation
4. Company Policies: Reference to specific company policies if they differ for probationary employees
5. Medical Examination: Include if pre-employment medical examination is required
6. Travel Requirements: Include if position requires travel during probation period
1. Schedule A - Job Description: Detailed outline of role responsibilities and requirements
2. Schedule B - Compensation Details: Breakdown of salary components and applicable benefits
3. Schedule C - Performance Metrics: Specific KPIs and evaluation criteria for the probation period
4. Appendix 1 - Company Policies: Relevant company policies applicable during probation
5. Appendix 2 - Confidentiality Agreement: Detailed confidentiality terms if required by company policy
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Relevant Teams
Human Resources
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Finance
Marketing
Sales
Operations
Information Technology
Customer Service
Research and Development
Administration
Business Development
Quality Assurance
Product Development
Corporate Communications
Procurement
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Entry Level Executive
Junior Manager
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