The Employment Contract Extension Letter is a crucial document used in Indonesian employment relationships when an employer wishes to extend a fixed-term employment contract beyond its initial term. This document must comply with Indonesian Manpower Law (Law No. 13 of 2003) and related regulations, including Government Regulation No. 35 of 2021. It is typically used for employees on fixed-term contracts (PKWT) and must be issued before the expiration of the current contract. The letter should clearly state the extension period, any modifications to existing terms, and ensure compliance with maximum duration requirements under Indonesian law. It serves as an official record of the employment continuation and protects both employer and employee interests by clearly documenting the extended terms of employment.
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1. Letter Header and Date: Company letterhead, date, and reference number of the letter
2. Employee Details: Full name and current position of the employee
3. Reference to Original Contract: Details of the original employment contract including its date and reference number
4. Extension Period: Clear statement of the extension period with specific start and end dates
5. Confirmation of Terms: Statement confirming whether original employment terms and conditions remain unchanged
6. Acknowledgment and Acceptance: Space for both employer and employee signatures to confirm agreement to the extension
1. Modified Terms: Section detailing any changes to employment terms (such as salary, benefits, or position) that will apply during the extension period
2. Performance Recognition: Optional section acknowledging employee's performance leading to the extension
3. Compliance Statement: Reference to relevant Indonesian labor laws and regulations governing the extension
4. Notice Period: Include if there are specific notice requirements for future extensions or termination
5. Probationary Period: Include only if a new probationary period applies to a modified role
1. Updated Salary and Benefits Schedule: Details of any changes to compensation package, if applicable
2. Job Description: Updated job responsibilities if the role has been modified
3. Company Policies Reference: List of applicable company policies that continue to apply or new policies that have been introduced
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