This document serves as a legally binding 3 Year Employment Contract between an employer and employee in Indonesia, structured to comply with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and Government Regulation No. 35 of 2021. It is designed for use when establishing fixed-term employment relationships that require a longer commitment period, typically for professional roles, specialized positions, or project-based work. The contract includes mandatory provisions required by Indonesian law while allowing customization for specific industry requirements, company policies, and position-specific terms. It's particularly relevant for organizations seeking to establish clear, compliant employment relationships while protecting both employer and employee interests through comprehensive terms covering compensation, benefits, duties, and termination provisions.
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1. Parties: Identification of the employer and employee, including their legal names, addresses, and registration details where applicable
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: Job title, role description, responsibilities, and reporting relationships
5. Term and Duration: Specific start date and end date of the 3-year contract, including any probation period
6. Working Hours and Location: Standard working hours, overtime provisions, and primary work location
7. Remuneration: Base salary, payment schedule, and method of payment
8. Benefits and Allowances: Mandatory benefits including BPJS, healthcare, and any additional benefits
9. Leave Entitlements: Annual leave, sick leave, religious holiday leave, and other statutory leave provisions
10. Confidentiality: Protection of company confidential information and trade secrets
11. Intellectual Property: Ownership of work products and innovations created during employment
12. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after employment
13. Performance Review: Process and frequency of performance evaluations
14. Termination: Grounds for termination, notice periods, and severance provisions
15. Governing Law: Specification of Indonesian law as governing law
16. Dispute Resolution: Process for resolving employment-related disputes
17. Entire Agreement: Statement that the contract represents the complete agreement between parties
1. Mobility Clause: Required if the employee may need to work at different locations or travel
2. Language Requirements: Needed if the contract is bilingual or if language proficiency is required
3. Work Permit Provisions: Required for foreign workers, including KITAS/work permit requirements
4. Secondment Terms: Needed if employee might be seconded to related companies
5. Bonus Scheme: Include if performance-based bonuses or incentives are offered
6. Training Requirements: Include if specific training or certifications are required
7. Company Policies: Reference to specific company policies if they form part of the contract
1. Schedule 1 - Job Description: Detailed description of roles, responsibilities, and key performance indicators
2. Schedule 2 - Compensation Structure: 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 - Confidential Information: Detailed list of what constitutes confidential information
5. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines
6. Appendix B - Leave Policy: Detailed leave application and approval procedures
Authors
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