The Agreement For Employee Bond is a crucial document used in Indonesian business practice when companies make significant investments in employee training, education, or skill development. This agreement is particularly relevant in situations where employers provide specialized training, professional certifications, or advanced education programs to their employees. The document serves to protect the employer's investment while ensuring compliance with Indonesian Labor Law (Law No. 13/2003), the Omnibus Law (Law No. 11/2020), and related employment regulations. It establishes the terms of the training provision, the duration of the required service period, and the consequences of early termination, including any financial obligations. The agreement must be carefully structured to balance the employer's interests with employee rights under Indonesian law, including constitutional protections against forced labor.
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1. Parties: Identification of the employer and employee, including their legal details and addresses
2. Background: Context of the agreement, including the employment relationship and training investment rationale
3. Definitions: Key terms used in the agreement, including 'Training Period', 'Bond Period', 'Bond Amount', etc.
4. Training Commitment: Details of the training to be provided, including nature, duration, and value of training
5. Bond Terms: Duration of the bond period and employee's commitment to continue employment after training
6. Financial Terms: Bond amount, calculation method, and depreciation schedule if applicable
7. Repayment Obligations: Circumstances triggering repayment and method of calculating amounts due
8. Employee Obligations: Specific commitments and performance requirements during bond period
9. Employer Obligations: Employer's commitments regarding employment terms during bond period
10. Termination: Conditions for early termination and consequences
11. Governing Law: Specification of Indonesian law as governing law and relevant regulations
12. Dispute Resolution: Process for resolving disputes, including jurisdiction and venue
13. Execution: Signature blocks and execution requirements
1. Non-Competition: Additional restrictions on employee's activities during and after bond period - include only if specifically required by employer policy
2. Confidentiality: Provisions for protecting company information - include if training involves access to sensitive information
3. Performance Metrics: Specific performance requirements post-training - include if bond is tied to performance standards
4. International Training: Additional provisions for overseas training - include only if training occurs outside Indonesia
5. Group Company Provisions: Terms relating to transfers between group companies - include only for corporate groups
6. Guarantor: Terms for third-party guarantor of bond amount - include if employer requires additional security
1. Training Program Details: Detailed description of training program, including curriculum, duration, and delivery method
2. Cost Breakdown: Itemized breakdown of training costs and investment by employer
3. Bond Amount Calculation: Formula and examples of bond amount calculations and depreciation schedule
4. Required Certifications: List of certifications or qualifications to be obtained through training
5. Employee Performance Standards: Specific metrics and standards employee must maintain during bond period
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