The Temporary Work Agreement (PKWT) is a crucial document in Indonesian employment law, designed for situations where work is temporary, seasonal, or project-based in nature. This agreement type is regulated under Law No. 13 of 2003 on Manpower and Government Regulation No. 35 of 2021, which set specific requirements for duration, renewal terms, and mandatory benefits. The document is essential for companies hiring temporary workers, seasonal staff, or project-based employees, ensuring compliance with local labor regulations while protecting both employer and employee interests. It must include clear terms about the employment period, compensation, working conditions, and social security benefits, with strict adherence to Indonesian legal requirements regarding maximum duration and renewal limitations.
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1. Parties: Identification of the employer and employee, including their complete legal names, addresses, and positions
2. Background: Context of the temporary employment relationship and the nature of the temporary work
3. Definitions: Key terms used throughout the agreement
4. Term of Employment: Specific start and end dates of the temporary employment period, including any probation period if applicable
5. Position and Duties: Details of the employee's role, responsibilities, and reporting relationships
6. Work Location: Primary workplace location and any requirements for travel or temporary relocation
7. Working Hours: Standard working hours, overtime arrangements, and rest periods in accordance with Indonesian labor law
8. Compensation and Benefits: Salary, mandatory allowances, and benefits as required by Indonesian law
9. Leave Entitlements: Annual leave, sick leave, and other types of leave as per Indonesian regulations
10. Social Security: BPJS Health and Employment participation requirements
11. Confidentiality: Protection of company confidential information and trade secrets
12. Termination: Grounds for early termination and associated procedures
13. Governing Law: Specification of Indonesian law as the governing law
14. Dispute Resolution: Process for resolving employment-related disputes
1. Mobility Clause: Required when the role may involve temporary assignments to different locations
2. Intellectual Property: Necessary when the employee may create or work with intellectual property
3. Non-Competition: Used when there are legitimate business interests to protect, subject to Indonesian law limitations
4. Performance Targets: Included when the role has specific measurable objectives
5. Training Requirements: Required when specific training or certifications are necessary for the role
6. Company Policies: Reference to specific company policies when they significantly affect the role
7. Safety and Health Protocols: Detailed when work involves specific health and safety requirements
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 - Working Hours Schedule: Detailed work schedule including shifts if applicable
4. Schedule 4 - Company Policies: Key company policies that form part of the employment terms
5. Appendix A - Required Documents: List of documents required from the employee (e.g., certifications, ID copies)
6. Appendix B - Social Security Forms: BPJS registration forms and related documents
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