Document background
The Founder Employment Agreement is a crucial document used when formalizing the relationship between a startup or company and its founder(s) in Indonesia. This agreement is particularly important as it addresses the unique dual role of founders as both employees and shareholders, ensuring compliance with Indonesian labor laws while protecting the interests of all parties involved. The document becomes necessary either at company formation or when transitioning from an informal to a formal structure, typically when receiving investment or scaling operations. It must comply with Indonesian Manpower Law and corporate regulations while addressing specific elements such as equity vesting, intellectual property rights, executive responsibilities, and termination provisions. The agreement serves as a foundational document that helps prevent future disputes and provides clarity on rights, obligations, and expectations for both the company and the founder.
