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Management Employment Contract Template for Indonesia

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Key Requirements PROMPT example:

Management Employment Contract

"I need a Management Employment Contract for hiring a new Operations Director for our Jakarta-based manufacturing company, starting March 1, 2025, with specific provisions for performance-based bonuses and oversight of 200+ employees."

Document background
The Management Employment Contract is a specialized employment agreement used for hiring and retaining senior personnel in Indonesia. This document is essential when engaging managers, directors, or executives in Indonesian companies, whether local or foreign-owned. It provides a comprehensive framework for the employment relationship, incorporating requirements under Indonesian labor law, particularly Law No. 13 of 2003 on Manpower and related regulations. The contract is designed to protect both employer and employee interests while addressing specific aspects of management positions, including strategic responsibilities, performance expectations, confidentiality obligations, and executive compensation structures. It is particularly relevant for companies establishing or expanding their management team in Indonesia, and can be adapted for both local and expatriate managers while ensuring compliance with Indonesian employment regulations.
Suggested Sections

1. Parties: Identification of the employer company and the management employee

2. Background: Context of the employment relationship and brief description of the management position

3. Definitions: Key terms used throughout the agreement including Company, Confidential Information, Intellectual Property, etc.

4. Appointment and Term: Specification of the management position, duties, and duration of employment

5. Duties and Responsibilities: Detailed description of management role, reporting lines, and key performance areas

6. Working Hours and Location: Standard working arrangements while acknowledging flexibility required for management positions

7. Remuneration and Benefits: Base salary, bonuses, allowances, and other benefits including participation in management incentive schemes

8. Leave Entitlements: Annual leave, sick leave, and other leave entitlements as per Indonesian law

9. Confidentiality: Protection of company confidential information and trade secrets

10. Intellectual Property: Ownership and assignment of intellectual property created during employment

11. Non-Competition and Non-Solicitation: Post-employment restrictions on competitive activities and employee solicitation

12. Termination: Grounds and procedures for termination, notice periods, and severance payments

13. Governing Law: Specification of Indonesian law as governing law and jurisdiction

14. General Provisions: Standard boilerplate clauses including amendments, notices, and entire agreement

Optional Sections

1. Expatriate Provisions: Additional clauses for foreign managers including visa requirements, tax equalization, and repatriation benefits

2. Stock Options: Terms of participation in company stock option or share purchase plans

3. International Travel: Provisions regarding international travel requirements and associated benefits

4. Language: Dual language provisions and governing language where contract is bilingual

5. Spouse and Family Benefits: Additional benefits for family members, particularly relevant for expatriate managers

6. Garden Leave: Provisions for placing the manager on paid leave during notice period

7. Change of Control: Provisions dealing with manager's rights in event of company ownership change

Suggested Schedules

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and key performance indicators

2. Schedule 2 - Compensation Package: Detailed breakdown of salary components, bonuses, and benefits

3. Schedule 3 - Company Policies: Key company policies applicable to management employees

4. Schedule 4 - Restricted Activities: Detailed list of restricted activities under non-compete provisions

5. Schedule 5 - Confidential Information: Specific categories of confidential information to be protected

6. Appendix A - Social Security Benefits: Details of mandatory BPJS Employment and Healthcare benefits

7. Appendix B - Performance Bonus Scheme: Structure and calculation of performance-based incentives

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions









































Clauses













































Relevant Industries

Manufacturing

Technology

Financial Services

Mining and Resources

Consumer Goods

Professional Services

Healthcare

Education

Retail

Construction

Telecommunications

Agriculture

Transportation and Logistics

Energy

Hospitality and Tourism

Relevant Teams

Human Resources

Legal

Senior Management

Executive Leadership

Operations

Finance

Administration

Corporate Governance

Compliance

Relevant Roles

Chief Executive Officer

Managing Director

Country Manager

General Manager

Operations Director

Finance Director

Human Resources Director

Technical Director

Sales Director

Marketing Director

Regional Manager

Division Head

Department Head

Senior Manager

Branch Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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