The Job Agreement Letter is a crucial document in Indonesian employment relations, typically used when formalizing new employment relationships or updating terms for existing employees. It serves as an official offer of employment and, once signed, becomes a binding agreement under Indonesian law. This document must align with Law No. 13 of 2003 on Manpower and its amendments under the Job Creation Law (Law No. 11 of 2020), including mandatory provisions regarding working conditions, benefits, and social security. The letter is simpler than a full employment contract but must still contain all legally required elements. It's particularly useful for companies seeking to establish clear, compliant employment relationships while maintaining a more approachable format than extensive contracts.
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1. Header and Date: Company letterhead, reference number, and date of the agreement
2. Parties: Complete details of the employer (company) and employee, including legal names, addresses, and positions
3. Background: Brief context of the employment offer and acceptance
4. Position and Duties: Job title, role description, and primary responsibilities
5. Employment Status: Whether permanent or fixed-term (PKWT) employment, including duration if fixed-term
6. Commencement Date: Start date of employment and any probationary period details
7. Work Location: Primary workplace location and any mobility requirements
8. Working Hours: Standard working hours, days, and any shift arrangements
9. Compensation: Base salary, payment schedule, and any fixed allowances
10. Benefits: Statutory benefits including BPJS Healthcare and Employment
11. Leave Entitlements: Annual leave, sick leave, and other statutory leave provisions
12. Confidentiality: Basic confidentiality obligations
13. Termination: Basic conditions for termination as per Indonesian law
14. Governing Law: Statement of Indonesian law governance
15. Signatures: Space for signatures of both parties
1. Non-Competition: Optional clause for senior positions restricting post-employment competition
2. Intellectual Property: For roles involving creative or technical work
3. Performance Review: Details of performance evaluation process if not covered in company policies
4. Bonus Structure: If applicable, details of any performance-based or annual bonus schemes
5. Remote Work: For positions allowing work from home or hybrid arrangements
6. International Travel: For roles requiring international travel or assignments
7. Training Requirements: For positions requiring specific training or certifications
8. Company Property: When employee is provided with significant company assets or equipment
1. Job Description: Detailed description of roles, responsibilities, and reporting lines
2. Compensation Details: Breakdown of salary components and benefits
3. Company Policies: Reference to key company policies and procedures applicable to the role
4. Required Certifications: List of required professional certifications or qualifications if applicable
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