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An Employment Contract With Equity is essential for companies in Indonesia looking to attract and retain top talent by offering share ownership alongside traditional employment benefits. This document type is particularly relevant for startups, technology companies, and growing businesses that want to align employee interests with company success. It must comply with Indonesian Labor Law No. 13 of 2003, Government Regulation No. 35 of 2021, and Company Law No. 40 of 2007, addressing both employment and shareholding rights. The contract typically includes detailed provisions on equity vesting, share class rights, and restrictions on share transfers, while ensuring all mandatory employment protections under Indonesian law are maintained. It's commonly used when hiring senior executives, key technical staff, or other strategic positions where equity compensation forms a significant part of the overall package.

1. Parties: Identification of the employer company and the employee, including their complete legal names and addresses

2. Background: Context of the employment relationship and brief description of the company's business

3. Definitions: Key terms used throughout the agreement, including specific equity-related terminology

4. Appointment and Position: Job title, role description, and reporting relationships

5. Term of Employment: Duration of employment (permanent or fixed-term) and effective date

6. Duties and Responsibilities: Detailed description of the employee's key responsibilities and performance expectations

7. Working Hours and Location: Standard working hours, work location, and any flexibility arrangements

8. Compensation and Benefits: Base salary, allowances, and standard benefits as required by Indonesian law

9. Equity Grant: Details of equity allocation, including type of securities, number of shares/options

10. Vesting Schedule: Timeline and conditions for equity vesting

11. Tax Obligations: Tax treatment of both salary and equity components

12. Leave Entitlements: Annual leave, sick leave, and other leave entitlements as per Indonesian law

13. Confidentiality: Protection of company confidential information

14. Intellectual Property: Ownership and assignment of IP created during employment

15. Non-Competition and Non-Solicitation: Post-employment restrictions on competitive activities

16. Termination: Grounds and procedures for termination as per Indonesian labor law

17. Governing Law: Specification of Indonesian law as governing law

18. Dispute Resolution: Process for resolving employment-related disputes