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Employee Training Reimbursement Agreement Template for Indonesia

A legally binding agreement under Indonesian law that establishes terms and conditions for employer-sponsored training and subsequent reimbursement obligations. This document outlines the employer's commitment to invest in employee development through specific training programs while protecting the company's financial investment by requiring the employee to either complete a specified service period or reimburse training costs. The agreement complies with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and related regulations governing employment relationships and training provisions, ensuring proper structure of training bonds and reimbursement terms within the Indonesian legal framework.

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What is a Employee Training Reimbursement Agreement?

The Employee Training Reimbursement Agreement is essential for organizations in Indonesia investing significantly in employee development and training. This document is typically used when an employer provides substantial training, certification programs, or professional development opportunities that represent a significant financial investment. It protects the employer's interests while ensuring compliance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and related regulations. The agreement details the training program, associated costs, service period requirements, and reimbursement obligations if the employee leaves before fulfilling their service commitment. It's particularly relevant in industries requiring specialized training or professional certifications, and should be structured to comply with Indonesian regulations regarding wage deductions and training bonds.

What sections should be included in a Employee Training Reimbursement Agreement?

1. Parties: Identifies the employer and employee entering into the agreement

2. Background: Explains the context of the training arrangement and the company's investment in employee development

3. Definitions: Defines key terms used throughout the agreement including Training Program, Training Costs, Service Period, etc.

4. Training Program Details: Specifies the nature, duration, and provider of the training program

5. Training Costs: Itemizes all costs covered by the employer including tuition, materials, travel, etc.

6. Service Commitment: Specifies the required period the employee must remain with the company after training completion

7. Reimbursement Obligations: Details the circumstances requiring reimbursement and calculation method

8. Payment Terms: Specifies how and when reimbursement must be paid if triggered

9. Employee Obligations: Lists employee's responsibilities regarding attendance, performance, and post-training work commitment

10. Termination Provisions: Addresses early termination scenarios and consequences

11. General Provisions: Standard clauses including governing law, amendments, and notices

What sections are optional to include in a Employee Training Reimbursement Agreement?

1. International Training Provisions: Required when training occurs outside Indonesia, addressing visa requirements, international costs, and currency considerations

2. Government Sponsorship: Needed when training is partially funded by government programs or involves government certification

3. Confidentiality Obligations: Required when training involves access to sensitive company information or trade secrets

4. Intellectual Property Rights: Needed when training results in creation of IP or involves company-specific technical knowledge

5. Performance Requirements: Optional section specifying minimum performance standards or certifications to be achieved during training

6. Training Bond: Required when implementing a specific training bond structure, common in certain industries

What schedules should be included in a Employee Training Reimbursement Agreement?

1. Schedule 1 - Training Program Details: Detailed outline of the training program, including curriculum, duration, and providers

2. Schedule 2 - Cost Breakdown: Itemized list of all training-related costs covered by the employer

3. Schedule 3 - Reimbursement Calculator: Formula and examples for calculating reimbursement amounts based on timing of departure

4. Schedule 4 - Required Certifications: List of certifications or qualifications to be obtained through the training

5. Appendix A - Company Training Policy: Reference to or excerpt from relevant company policies on training and development

6. Appendix B - Acknowledgment Forms: Required forms for employee acknowledgment of training completion and obligations

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Document Type

Equity Agreement

Cost

Free to use

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