This Full Time Employment Agreement template is designed for use in Indonesia when establishing a permanent employment relationship between an employer and a full-time employee. It is structured to comply with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and related regulations, including recent amendments and implementing regulations. The document is suitable for both domestic and multinational companies operating in Indonesia and can be used for hiring both Indonesian nationals and expatriates (subject to relevant work permits). The agreement incorporates mandatory provisions required by Indonesian law, such as working hours, minimum wage compliance, social security benefits, and religious holiday allowances, while also addressing standard employment terms like confidentiality, intellectual property rights, and termination procedures.
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1. Parties: Identification of the employer company and the employee, including their complete legal names and addresses
2. Background: Brief context of the employment relationship and the intention to enter into a full-time employment agreement
3. Definitions: Key terms used throughout the agreement
4. Position and Duties: Employee's job title, role, responsibilities, and reporting structure
5. Term of Employment: Commencement date and status of employment (permanent/indefinite period)
6. Probation Period: Standard 3-month probation period as permitted under Indonesian law
7. Working Hours and Location: Standard working hours, workplace location, and overtime provisions in accordance with labor laws
8. Compensation and Benefits: Base salary, mandatory allowances, and statutory benefits including BPJS participation
9. Leave Entitlements: Annual leave, sick leave, religious holiday leave, and other statutory leave provisions
10. Confidentiality: Protection of company's confidential information and trade secrets
11. Intellectual Property: Ownership of work products and innovations created during employment
12. Code of Conduct: Expected behavior, compliance with company policies and procedures
13. Termination: Grounds for termination and procedures in accordance with Indonesian labor law
14. Governing Law: Specification of Indonesian law as the governing law
15. Dispute Resolution: Process for resolving employment-related disputes
16. Entire Agreement: Statement that the agreement supersedes all prior understandings
1. Non-Competition: Restrictions on working with competitors after employment ends (use with caution as enforceability is limited in Indonesia)
2. Mobility Clause: Include when the position may require relocation or travel
3. Performance Reviews: Include when implementing specific performance evaluation procedures
4. Additional Benefits: For companies offering benefits beyond statutory requirements
5. Training Commitments: Include when mandatory training or development programs are required
6. Remote Work Provisions: Include for positions allowing work from home or remote working arrangements
7. Commission Structure: Include for sales or performance-based roles with variable compensation
1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and key performance indicators
2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits
3. Schedule 3 - Company Policies: Key company policies and procedures referenced in the main agreement
4. Schedule 4 - Statutory Benefits: Details of mandatory benefits under Indonesian law
5. Appendix A - Confidentiality Agreement: Detailed confidentiality obligations and protected information
6. Appendix B - Employee Handbook Acknowledgment: Confirmation of receipt and understanding of company policies
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