The International Employment Agreement is essential for companies hiring foreign workers in Indonesia, serving as the primary document governing the employment relationship. This agreement must comply with Indonesian labor laws, particularly Law No. 13/2003 on Manpower and Presidential Regulation No. 20/2018 on foreign worker utilization. It addresses crucial aspects such as employment terms, compensation, benefits, work permits, and social security requirements while incorporating international elements like expatriate benefits and cross-border considerations. The document is typically used when engaging foreign professionals for specialized roles, ensuring proper documentation for immigration authorities and establishing clear terms for both parties in accordance with local regulations.
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1. Parties: Identification of the employer entity and the employee, including their complete legal names and addresses
2. Background: Context of the employment relationship, including the nature of the employer's business and the purpose of hiring an international employee
3. Definitions: Key terms used throughout the agreement, including specific Indonesian legal terms
4. Appointment and Term: Position title, employment status, and duration of employment (fixed-term or permanent as per Indonesian law)
5. Duties and Responsibilities: Detailed description of the role, reporting relationships, and key responsibilities
6. Work Location and Hours: Primary workplace location, working hours, and overtime provisions in compliance with Indonesian labor law
7. Compensation and Benefits: Base salary, mandatory benefits under Indonesian law, and additional benefits package
8. Leave Entitlements: Annual leave, sick leave, and other leave entitlements as per Indonesian regulations
9. Social Security and Insurance: Mandatory BPJS participation and any additional insurance coverage
10. Immigration and Work Permits: Requirements and responsibilities regarding work permits, visas, and stay permits
11. Confidentiality and Intellectual Property: Protection of company information and ownership of work product
12. Non-Competition and Non-Solicitation: Post-employment restrictions in compliance with Indonesian law
13. Termination: Grounds for termination, notice periods, and severance calculations per Indonesian regulations
14. Governing Law and Dispute Resolution: Application of Indonesian law and dispute resolution procedures
15. General Provisions: Standard clauses including amendments, notices, and entire agreement provisions
1. Probationary Period: Include when the employee is subject to an initial probationary period (maximum 3 months under Indonesian law)
2. International Relocation: Include when the employer provides relocation assistance and associated terms
3. Housing Allowance: Include when providing accommodation or housing allowance as part of the package
4. Education Allowance: Include when providing education benefits for employee's children
5. Tax Equalization: Include when implementing a tax equalization policy for international employees
6. Repatriation: Include terms for return to home country at end of employment
7. Language Requirements: Include when specific language proficiency is required and any language training provisions
8. Dual Language Provisions: Include when agreement is executed in both English and Indonesian, specifying which version prevails
9. Assignment Variation: Include when the role may require travel or temporary assignment to different locations
1. Schedule 1 - Job Description: Detailed description of duties, responsibilities, and performance expectations
2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and payment arrangements
3. Schedule 3 - Benefits Package: Detailed description of all benefits, including both mandatory and additional benefits
4. Schedule 4 - Company Policies: Key company policies applicable to the employee
5. Appendix A - Required Documents: List of documents required for work permit and immigration purposes
6. Appendix B - Emergency Contacts: Emergency contact information both in Indonesia and home country
7. Appendix C - Privacy Notice: Details of personal data collection and processing
8. Appendix D - Code of Conduct: Company's code of conduct and ethical standards
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