This Indefinite Employment Contract template is designed for use by companies operating in Indonesia when hiring permanent employees. It complies with Indonesian labor law requirements, particularly Law No. 13 of 2003 on Manpower as amended by the Job Creation Law (Law No. 11 of 2020). The document should be used when establishing permanent employment relationships, as opposed to fixed-term or temporary arrangements. It contains all mandatory provisions required by Indonesian law, including working hours, minimum wage compliance, social security benefits (BPJS), religious holiday allowance (THR), and statutory leave entitlements. The contract template can be customized for various positions while maintaining compliance with local employment regulations and protecting both employer and employee interests.
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1. Parties: Identification of the employer and employee, including their legal details and addresses
2. Background: Brief context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Position and Duties: Employee's job title, role, responsibilities, and reporting structure
5. Work Location: Primary workplace location and possibility of relocation if applicable
6. Working Hours: Standard working hours, overtime provisions, and rest periods as per Indonesian law
7. Compensation and Benefits: Base salary, mandatory allowances, and other benefits
8. Leave Entitlements: Annual leave, sick leave, religious holidays, and other statutory leave rights
9. Social Security: BPJS Healthcare and Employment participation and contributions
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, notice periods, and severance provisions as per Indonesian law
14. Governing Law: Application of Indonesian law and jurisdiction
15. Dispute Resolution: Process for resolving employment-related disputes
1. Probation Period: Terms of initial probation period - optional for indefinite contracts but common in practice
2. Non-Competition: Post-employment restrictions - use when protecting business interests is crucial
3. Mobility Clause: Terms for temporary or permanent relocation - include for roles requiring travel or potential location changes
4. Performance Reviews: Process for regular performance evaluations - include for companies with formal review systems
5. Training Requirements: Mandatory training and professional development obligations - include for specialized roles
6. Remote Working: Terms for working from home or remote locations - include if applicable to the role
7. Commission Structure: Details of sales or performance-based compensation - include for sales or commission-based roles
8. Language Requirements: Required language proficiency and working language - include for multinational companies
1. Schedule 1 - Job Description: Detailed description of role, 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. Schedule 4 - Mandatory Benefits: Details of statutory benefits including BPJS participation
5. Appendix A - Confidential Information: Definition and examples of confidential information
6. Appendix B - Approved Outside Activities: List of permitted external business activities if any
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