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Official Employment Contract for Indonesia

Official Employment Contract Template for Indonesia

An Official Employment Contract governed by Indonesian law, specifically compliant with Law No. 13 of 2003 (Manpower Law) and related regulations. This document establishes the formal employment relationship between an employer and employee in Indonesia, outlining all mandatory provisions required by Indonesian labor law including employment terms, compensation, benefits, working hours, leave entitlements, and termination conditions. The contract incorporates provisions for both standard employment requirements and specific protections required under Indonesian jurisdiction, ensuring compliance with local labor regulations while protecting both employer and employee interests.

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Official Employment Contract

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What is a Official Employment Contract?

The Official Employment Contract is a fundamental legal document required for establishing employment relationships in Indonesia, governed by Law No. 13 of 2003 (Manpower Law) and related regulations. This document is essential for any business operating in Indonesia when hiring employees, whether for permanent or fixed-term positions. The contract must be written in Bahasa Indonesia (with an English translation permitted as a companion document) and must include mandatory provisions regarding working conditions, rights, and obligations as prescribed by Indonesian labor law. It serves as the primary reference point for the employment relationship, dispute resolution, and ensures compliance with local labor regulations including minimum wage requirements, social security participation, and working hours limitations.

What sections should be included in a Official Employment Contract?

1. Parties: Identification of the employer and employee, including their legal names, addresses, and relevant registration numbers

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Position and Duties: Description of the employee's job title, role, responsibilities, and reporting structure

5. Term of Employment: Duration of employment (permanent or fixed-term) and effective date

6. Work Location and Hours: Primary workplace location and standard working hours, including rest periods

7. Compensation and Benefits: Salary, allowances, bonuses, and mandatory benefits as per Indonesian law

8. Leave Entitlements: Annual leave, sick leave, religious holiday leave, and other leave types as per law

9. Social Security and Insurance: BPJS Healthcare and Employment participation and other insurance coverage

10. Confidentiality: Protection of company confidential information and trade secrets

11. Intellectual Property: Ownership of work products and innovations created during employment

12. Standards of Conduct: Expected behavior, compliance with company policies and procedures

13. Termination: Grounds for termination, notice periods, and severance provisions

14. Governing Law: Reference to Indonesian law and jurisdiction

15. Execution: Signature blocks and execution details

What sections are optional to include in a Official Employment Contract?

1. Probation Period: Terms of initial probation period - include for new permanent employees

2. Non-Competition: Post-employment competition restrictions - include for senior positions or when dealing with sensitive information

3. Mobility Clause: Provisions for potential workplace relocation - include when employee may need to work at different locations

4. Performance Reviews: Structure and timing of performance evaluations - include for permanent employees

5. Training Requirements: Mandatory training and professional development - include when specific qualifications are needed

6. Commission Structure: Details of sales or performance-based commission - include for sales positions

7. Foreign Worker Provisions: Special provisions for expatriate employees - include for foreign workers

8. Remote Work Provisions: Terms for working from home or remote locations - include if remote work is permitted

What schedules should be included in a Official Employment Contract?

1. Schedule 1 - Job Description: Detailed description of roles, responsibilities, and key performance indicators

2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits

3. Schedule 3 - Company Policies: Key company policies and procedures applicable to the employee

4. Schedule 4 - Code of Conduct: Detailed behavioral expectations and ethical standards

5. Appendix A - Required Documents: List of documents required for employment (e.g., certifications, permits)

6. Appendix B - Benefits Summary: Detailed description of all employee benefits and eligibility criteria

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions








































Clauses



































Relevant Industries

Manufacturing

Technology

Financial Services

Retail

Healthcare

Education

Construction

Mining

Agriculture

Hospitality

Professional Services

Telecommunications

Energy

Transportation

E-commerce

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Research and Development

Production

Quality Assurance

Customer Service

Administration

Project Management

Supply Chain

Public Relations

Relevant Roles

Chief Executive Officer

General Manager

Department Manager

Senior Executive

Staff Officer

Administrative Assistant

Technical Specialist

Sales Representative

Production Supervisor

Human Resources Officer

Finance Manager

Operations Manager

Project Manager

Research Analyst

Customer Service Representative

Marketing Executive

Software Developer

Account Manager

Quality Control Inspector

Legal Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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