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Pre Employment Contract for Indonesia

Pre Employment Contract Template for Indonesia

A Pre-Employment Contract governed by Indonesian law, specifically complying with Law No. 13 of 2003 on Manpower and related regulations. This document establishes the terms and conditions of a pre-employment relationship between an employer and a potential employee, outlining the evaluation period before permanent employment. It includes provisions for duties, compensation, performance evaluation criteria, confidentiality obligations, and conditions for conversion to permanent employment, all structured within Indonesia's legal framework for employment relationships.

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What is a Pre Employment Contract?

The Pre Employment Contract serves as a crucial document in Indonesian employment practices, providing a structured framework for evaluating potential employees before permanent employment. This document is commonly used when companies need to assess candidate suitability through practical work experience while maintaining legal compliance with Indonesian labor laws, particularly Law No. 13 of 2003 and related regulations. It typically precedes a permanent employment agreement and includes essential terms such as duration, duties, compensation, evaluation criteria, and conditions for permanent employment conversion. The document helps protect both employer and potential employee interests while ensuring compliance with Indonesian employment regulations regarding pre-employment arrangements.

What sections should be included in a Pre Employment Contract?

1. Parties: Identification of the employer company and the potential employee, including complete legal names and addresses

2. Background: Context of the pre-employment arrangement, including the intended permanent position and purpose of the pre-employment period

3. Definitions: Key terms used throughout the agreement, including definition of the pre-employment period, permanent employment, and other relevant terms

4. Duration: Length of the pre-employment period, including start and end dates

5. Pre-Employment Status: Clear statement that this is a pre-employment arrangement and not permanent employment, with conditions for conversion to permanent employment

6. Duties and Responsibilities: Overview of the potential employee's role, duties, and expectations during the pre-employment period

7. Working Hours and Location: Specified working hours, days, and location during the pre-employment period

8. Compensation and Benefits: Details of any stipend, allowances, or benefits provided during the pre-employment period

9. Performance Evaluation: Criteria and process for evaluating the potential employee's suitability for permanent employment

10. Confidentiality: Obligations regarding company confidential information and trade secrets

11. Intellectual Property: Ownership and rights regarding any IP created during the pre-employment period

12. Termination: Conditions under which either party may terminate the pre-employment arrangement

13. Governing Law: Specification of Indonesian law as governing law and relevant jurisdiction

14. Execution: Signature blocks and execution requirements

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

1. Training Requirements: Details of any specific training programs required during the pre-employment period - include when training is a significant component

2. Medical Examination: Requirements for medical examinations - include for positions requiring specific health conditions

3. Non-Competition: Restrictions on working with competitors - include for senior or technical positions

4. Equipment and Resources: Details of company equipment provided - include when significant company resources are provided

5. Travel Requirements: Details of any travel expectations - include when position involves travel

6. Background Check Authorization: Authorization for background checks - include when background checks are required

7. Social Security Registration: Details of BPJS registration requirements - include when immediate registration is required

8. Language Requirements: Language proficiency requirements and testing - include for positions requiring specific language skills

What schedules should be included in a Pre Employment Contract?

1. Schedule 1 - Job Description: Detailed description of the role and responsibilities

2. Schedule 2 - Compensation Details: Breakdown of any stipend, allowances, and benefits

3. Schedule 3 - Performance Metrics: Specific criteria for evaluation and conversion to permanent employment

4. Schedule 4 - Company Policies: Relevant company policies applicable during pre-employment

5. Appendix A - Required Documents: List of documents required from the potential employee

6. Appendix B - Training Schedule: Details of any required training programs and schedules

7. Appendix C - Confidentiality Agreement: Detailed confidentiality terms and requirements

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

Cost

Free to use
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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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