The Fixed Term Employment Agreement is designed for use in Indonesia when companies need to engage employees for specific periods or projects under Indonesian labor law. This document type is particularly relevant for project-based work, seasonal employment, or temporary positions that align with the permitted uses of fixed-term contracts under Indonesian regulations. The agreement must comply with strict requirements set forth in Law No. 13/2003 and Government Regulation No. 35/2021, including limitations on duration (maximum 5 years including renewals), mandatory benefits, and specific termination provisions. It includes comprehensive details about employment terms, compensation, statutory benefits, working hours, leave entitlements, and BPJS social security participation, while ensuring all provisions align with current Indonesian employment regulations.
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1. Parties: Identification of the employer and employee with complete legal names and addresses
2. Background: Context of the employment relationship and confirmation that this is a fixed-term contract (PKWT)
3. Definitions: Key terms used throughout the agreement
4. Position and Duties: Job title, role description, responsibilities, and reporting relationships
5. Term of Employment: Duration of the fixed-term contract, start date, end date, and any probationary period if applicable
6. Work Location: Primary workplace location and any mobility requirements
7. Working Hours: Standard working hours, overtime arrangements, and rest periods as per Indonesian labor law
8. Compensation: Base salary, payment schedule, and mandatory allowances including religious holiday allowance (THR)
9. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements
10. Social Security: BPJS Healthcare and Employment participation requirements
11. Confidentiality: Protection of company confidential information and trade secrets
12. Intellectual Property: Ownership of work products and innovations created during employment
13. Termination: Grounds for termination and procedures in accordance with Indonesian labor law
14. Governing Law: Confirmation that Indonesian law governs the agreement
15. Dispute Resolution: Process for resolving employment-related disputes
16. Entire Agreement: Standard boilerplate confirming this document represents the complete agreement
17. Execution: Signature blocks and execution requirements
1. Performance Reviews: Include when the company has a formal performance review system
2. Bonus and Incentives: Include when additional variable compensation is offered beyond fixed salary
3. Non-Competition: Include when restricting post-employment competition (note: enforceability limited under Indonesian law)
4. Training Requirements: Include when specific training or certification requirements exist for the role
5. Remote Work Provisions: Include when remote work arrangements are permitted
6. Medical Benefits: Include when additional medical benefits beyond BPJS are provided
7. Code of Conduct: Include when referencing specific company policies or conduct requirements
8. Travel Requirements: Include when position requires regular travel and associated compensation
1. Schedule 1 - Job Description: Detailed description of roles, responsibilities, and performance expectations
2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits
3. Schedule 3 - Company Policies: Key company policies that form part of the employment terms
4. Appendix A - Required Documents: List of documents required from employee (ID, certificates, etc.)
5. Appendix B - Confidential Information: Specific details of what constitutes confidential information
6. Appendix C - BPJS Registration Forms: Social security registration requirements and forms
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