The Assignment Of Employment Contract is a crucial document used in Indonesia when transferring employment relationships from one employer to another, typically during corporate restructuring, business acquisitions, or internal reorganizations. It ensures compliance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and the Job Creation Law (Omnibus Law). The document establishes the tripartite relationship between the original employer, new employer, and employee, addressing continued employment terms, benefit preservation, and statutory obligations. It includes provisions for maintaining service continuity, transferring obligations, and ensuring social security coverage, while incorporating necessary approvals and acknowledgments from all parties involved.
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1. Parties: Identifies the three main parties: the original employer (assignor), the new employer (assignee), and the employee
2. Background: Explains the context and reasons for the assignment, including any corporate restructuring or business transfer
3. Definitions: Defines key terms used in the agreement, including 'Original Employment Contract', 'Effective Date', and 'Transferred Rights and Obligations'
4. Assignment and Acceptance: Details the transfer of the employment contract from assignor to assignee and acceptance by all parties
5. Effective Date: Specifies when the assignment takes effect
6. Continuation of Employment Terms: Confirms that all existing employment terms and conditions will be maintained
7. Employee Benefits and Entitlements: Addresses the continuation of benefits, including statutory benefits under BPJS
8. Recognition of Service: Confirms that the employee's period of service with the original employer will be recognized by the new employer
9. Statutory Compliance: Ensures compliance with Indonesian labor laws and regulations
10. Release and Indemnity: Addresses release of the original employer and indemnification provisions
11. Governing Law: Confirms Indonesian law as the governing law
12. Dispute Resolution: Specifies procedures for resolving any disputes under Indonesian law
1. Non-competition and Confidentiality: Include when there are specific confidentiality or non-compete obligations to be transferred or modified
2. Foreign Worker Provisions: Required when the employee is a foreign worker, addressing work permit and immigration requirements
3. Intellectual Property Rights: Include when the employment involves significant IP rights that need to be transferred
4. Group Company Provisions: Include when the assignment is between related companies and group-wide policies apply
5. Transitional Arrangements: Include when specific temporary arrangements are needed during the transfer period
6. Employee Representations: Include when specific confirmations or acknowledgments are required from the employee
1. Original Employment Contract: Copy of the existing employment contract being assigned
2. Employee Benefits Schedule: Detailed list of current benefits and their continuation terms
3. Outstanding Obligations Schedule: List of any outstanding obligations, loans, or advances to be transferred
4. Company Policies Acknowledgment: New employer's key policies that the employee must acknowledge
5. Statutory Declarations: Required declarations under Indonesian labor law regarding the transfer
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