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Flexible Employment Contract Template for Indonesia

This document is a comprehensive Flexible Employment Contract template designed for use in Indonesia, compliant with Law No. 13/2003 (Manpower Law), Law No. 11/2020 (Job Creation Law), and related regulations. It establishes a flexible working arrangement between employer and employee, detailing variable working hours, potential remote work options, and other flexible arrangements while ensuring compliance with Indonesian labor laws. The contract includes provisions for social security (BPJS), leave entitlements, performance evaluation, and termination procedures, all structured to accommodate modern working practices while maintaining legal compliance with Indonesian employment regulations.

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What is a Flexible Employment Contract?

Flexible Employment Contracts have become increasingly important in Indonesia's evolving workplace landscape, particularly as organizations adapt to modern working practices and employee preferences. This document template is specifically designed for Indonesian employers who wish to implement flexible working arrangements while maintaining compliance with local labor laws, including the Manpower Law (Law No. 13/2003) and Job Creation Law (Law No. 11/2020). It's particularly valuable for companies offering hybrid work models, variable hours, or remote working options. The contract template includes comprehensive provisions for flexible scheduling, remote work capabilities, performance measurement, and employee benefits, while ensuring all mandatory requirements under Indonesian employment law are met. It's structured to protect both employer and employee interests while providing the flexibility needed in modern workplace arrangements.

What sections should be included in a Flexible Employment Contract?

1. Parties: Identification of the employer and employee, including their legal details and addresses

2. Background: Context of the employment relationship and purpose of the flexible working arrangement

3. Definitions: Key terms used throughout the agreement, including specific flexible work arrangement terminology

4. Appointment and Duration: Terms of employment, position, and duration of the contract

5. Nature of Employment: Description of the flexible work arrangement, including work patterns and locations

6. Duties and Responsibilities: Detailed description of the employee's role, reporting lines, and key responsibilities

7. Working Hours and Schedule: Agreed working hours, flexibility arrangements, and core hours if applicable

8. Compensation and Benefits: Salary, allowances, and benefits structure compliant with Indonesian regulations

9. Leave Entitlements: Various types of leave as required by Indonesian law, including annual, sick, and religious holiday leave

10. Social Security and Insurance: BPJS participation and other mandatory insurance coverage

11. Confidentiality and Intellectual Property: Protection of company information and intellectual property rights

12. Performance Review: Process and frequency of performance evaluations

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

14. Governing Law: Confirmation of Indonesian law application and dispute resolution procedures

What sections are optional to include in a Flexible Employment Contract?

1. Remote Work Provisions: Detailed arrangements for remote working, including home office setup and expenses

2. Time Recording: Specific requirements for tracking working hours in flexible arrangements

3. Equipment and Resources: Provisions regarding company-provided equipment and resources for flexible work

4. Health and Safety: Specific health and safety requirements for flexible working arrangements

5. Communication Protocols: Procedures for maintaining communication during flexible working

6. Training and Development: Specific provisions for training and development in flexible working context

7. Data Protection: Additional data protection measures for remote/flexible working

8. Travel Requirements: Any travel obligations and related compensation

9. Performance Metrics: Specific KPIs and measurement criteria for flexible working

What schedules should be included in a Flexible Employment Contract?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and performance expectations

2. Schedule 2 - Compensation Details: Breakdown of salary components, benefits, and allowances

3. Schedule 3 - Working Pattern: Specific flexible working pattern agreed with the employee

4. Schedule 4 - Company Policies: Relevant company policies applicable to flexible working

5. Schedule 5 - Equipment List: List of company-provided equipment and resources

6. Appendix A - Remote Work Guidelines: Detailed guidelines for remote working arrangements

7. Appendix B - Health and Safety Checklist: Safety requirements for flexible working environments

8. Appendix C - Communication Protocols: Detailed procedures for maintaining effective communication

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

Employment Contract

Cost

Free to use

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