The Labour Employment Contract serves as the fundamental legal document governing the employment relationship in Indonesia. It is essential for any formal employment arrangement and must comply with Law No. 13 of 2003 on Manpower, the Omnibus Law (Law No. 11 of 2020), and related implementing regulations. This document is required when hiring both permanent and fixed-term employees in Indonesia, establishing clear terms of employment including position, compensation, working hours, benefits, and mutual obligations. The contract provides legal protection for both employer and employee while ensuring compliance with mandatory labor provisions, social security requirements, and proper dispute resolution mechanisms under Indonesian law. It should be updated periodically to reflect changes in labor regulations and company policies.
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1. Parties: Identification of the employer and employee with complete legal names and addresses
2. Background: Brief context of the employment relationship and agreement purpose
3. Definitions: Key terms used throughout the agreement
4. Position and Duties: Job title, role description, and main responsibilities
5. Employment Status: Whether permanent or fixed-term, probation period if applicable
6. Work Location: Primary workplace location and any applicable work arrangements
7. Working Hours: Standard working hours, overtime provisions, and rest periods
8. Compensation: Salary, payment schedule, and other monetary benefits
9. Leave Entitlements: Annual leave, sick leave, religious holidays, and other permitted absences
10. Social Security: BPJS Employment and Health Insurance participation
11. Employee Obligations: General duties, compliance with company policies, and code of conduct
12. Employer Obligations: Company's responsibilities regarding working conditions and employee welfare
13. Termination: Grounds for termination and associated procedures
14. Dispute Resolution: Process for handling employment-related disputes
15. Governing Law: Reference to Indonesian law and relevant regulations
16. Entire Agreement: Statement of agreement completeness and amendment procedures
1. Confidentiality: Required for positions with access to sensitive information or trade secrets
2. Intellectual Property: Necessary for creative or technical roles where IP creation is expected
3. Non-Competition: For senior positions or roles with access to competitive information
4. Mobility Clause: For positions that may require relocation or regular travel
5. Performance Reviews: Detailed performance evaluation procedures for roles with specific KPIs
6. Commission Structure: For sales positions or roles with variable compensation
7. Training Requirements: For positions requiring specific ongoing training or certifications
8. Remote Work Provisions: For positions allowing work-from-home arrangements
1. Schedule 1 - Job Description: Detailed breakdown of role responsibilities and requirements
2. Schedule 2 - Compensation Details: Breakdown of salary components, benefits, and allowances
3. Schedule 3 - Company Policies: Key company policies that form part of the employment terms
4. Schedule 4 - Performance Metrics: Specific KPIs and performance evaluation criteria
5. Schedule 5 - Benefits Summary: Detailed description of all employee benefits and eligibility
6. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines
7. Appendix B - Confidentiality Agreement: Detailed confidentiality terms if applicable
8. Appendix C - Required Certifications: List of required professional certifications or licenses
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