The Individual Employment Agreement serves as the foundational document establishing an employment relationship in Indonesia. It is required for both fixed-term and permanent employment arrangements under Indonesian law, particularly Law No. 13 of 2003 on Manpower. This agreement should be used when hiring new employees or formalizing existing employment relationships in Indonesia. It must include mandatory provisions required by Indonesian labor law while allowing customization for specific roles and company requirements. The document typically covers essential employment terms, statutory benefits, and company-specific provisions, ensuring compliance with local regulations while protecting both employer and employee interests. For foreign companies, the agreement must be executed through their Indonesian legal entity and should be prepared in both English and Bahasa Indonesia, with the Indonesian version prevailing in case of discrepancies.
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1. Parties: Identification of the employer and employee, including their legal details and addresses
2. Background: Brief context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Position and Duties: Employee's job title, role, and primary responsibilities
5. Term of Employment: Duration of employment (permanent or fixed-term) and probation period if applicable
6. Working Hours and Location: Standard working hours, work location, and overtime provisions
7. Compensation and Benefits: Base salary, mandatory allowances, and statutory benefits including BPJS participation
8. Leave Entitlements: Annual leave, sick leave, religious holidays, and other statutory leave rights
9. Company Policies: Compliance with company regulations and standard operating procedures
10. Termination: Grounds for termination and procedures in accordance with Indonesian law
11. Governing Law: Confirmation of Indonesian law application and dispute resolution procedures
1. Mobility Clause: Include when the role may require relocation or travel
2. Confidentiality: Include for roles with access to sensitive information
3. Intellectual Property: Include for creative, technical, or development roles
4. Non-Competition: Include for senior positions or roles with access to trade secrets (note: enforceability is limited in Indonesia)
5. Performance Reviews: Include if specific performance review processes are applicable
6. Training Requirements: Include if mandatory training or certifications are required
7. Remote Working: Include if remote work arrangements are applicable
8. Commission Structure: Include for sales or commission-based roles
9. Foreign Worker Provisions: Include if the employee is an expatriate
1. Schedule 1 - Job Description: Detailed description of roles, responsibilities, and reporting lines
2. Schedule 2 - Compensation Details: 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 - Code of Conduct: Expected standards of behavior and professional conduct
5. Appendix A - Performance Metrics: Specific KPIs and performance expectations if applicable
6. Appendix B - Benefits Summary: Detailed description of all benefits and eligibility criteria
Relevant legal definitions
Clauses
Relevant Industries
Technology
Manufacturing
Financial Services
Retail
Healthcare
Education
Professional Services
Construction
Hospitality
Energy
Mining
Agriculture
Telecommunications
Transportation
E-commerce
Relevant Teams
Human Resources
Legal
Finance
Operations
Information Technology
Sales
Marketing
Customer Service
Research and Development
Production
Quality Assurance
Administration
Business Development
Compliance
Supply Chain
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 Assistant
Operations Manager
Research Analyst
Customer Service Representative
Technical Support Specialist
Production Supervisor
Quality Control Inspector
Account Manager
Business Development Executive
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