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The Contract Based Employment Agreement is essential for establishing fixed-term employment relationships in Indonesia, commonly used when hiring for specific projects, seasonal work, or temporary positions. This agreement type must strictly comply with Indonesian Labor Law No. 13/2003, the Omnibus Law (Law No. 11/2020), and related regulations governing PKWT (fixed-term employment). The document covers crucial aspects including employment terms, compensation, benefits, working hours, leave entitlements, and termination conditions. It's particularly important to note that under Indonesian law, these agreements have specific duration limitations and renewal restrictions, making proper drafting and timing crucial for legal compliance.

1. Parties: Identification of the employer and employee, including their complete legal names, addresses, and any relevant registration numbers

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Term of Employment: Duration of the contract, including start date and end date (as required for PKWT under Indonesian law)

5. Position and Duties: Employee's job title, role, responsibilities, and reporting relationships

6. Work Location: Primary workplace location and any flexibility arrangements

7. Working Hours: Standard working hours, rest periods, and overtime arrangements in compliance with Indonesian labor law

8. Compensation: Base salary, payment schedule, and mandatory allowances as per Indonesian regulations

9. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements

10. Social Security: BPJS Healthcare and Employment participation as required by law

11. Confidentiality: Protection of company confidential information and trade secrets

12. Intellectual Property: Ownership and rights to work product created during employment

13. Termination: Grounds and procedures for contract termination in accordance with Indonesian labor law

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