The Managerial Agreement serves as a crucial legal document for establishing and governing employment relationships at the management level in Indonesia. It is specifically designed for use when appointing individuals to senior positions within organizations operating under Indonesian jurisdiction. The agreement comprehensively addresses key aspects of the employment relationship, including appointment terms, duties, compensation, benefits, and performance expectations, while ensuring compliance with Indonesian Labor Law (Law No. 13 of 2003 on Manpower) and related regulations. This document is essential for protecting both employer and employee interests, particularly in areas such as confidentiality, intellectual property rights, non-competition, and dispute resolution. It's structured to accommodate various management levels and can be customized based on specific industry requirements while maintaining alignment with Indonesian legal frameworks.
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1. Parties: Identification of the employer company and the manager, including their respective addresses and registration details
2. Background: Context of the appointment and brief description of the company's business
3. Definitions: Key terms used throughout the agreement
4. Appointment and Term: Official designation of the position, commencement date, and duration of appointment
5. Duties and Responsibilities: Detailed description of managerial role, reporting lines, and key performance areas
6. Working Hours and Location: Standard working arrangements and primary work location
7. Remuneration and Benefits: Base salary, bonuses, allowances, and other benefits as per Indonesian regulations
8. Leave Entitlements: Annual leave, sick leave, and other leave provisions as per Labor Law
9. Confidentiality: Protection of company's confidential information and trade secrets
10. Intellectual Property: Ownership of work products and innovations developed during employment
11. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after employment
12. Performance Review: Evaluation process and performance measurement criteria
13. Termination: Grounds and procedures for termination as per Indonesian Labor Law
14. Governing Law: Application of Indonesian law and jurisdiction
15. Dispute Resolution: Process for resolving disputes as per Law No. 2 of 2004
1. Expatriate Provisions: Additional terms for foreign managers including visa requirements and repatriation
2. Multi-location Responsibilities: Terms for managers overseeing multiple locations or subsidiaries
3. Share Options: Terms of any share option or equity participation schemes
4. Rotation Policy: Terms for potential rotation between different roles or locations
5. Language: Governing language where agreement is bilingual
6. Severance Package: Enhanced severance terms beyond statutory requirements
7. Corporate Governance: Additional responsibilities related to board reporting or corporate governance
8. International Travel: Terms related to international travel requirements and compensation
1. Schedule 1 - Job Description: Detailed outline of role, responsibilities, and key performance indicators
2. Schedule 2 - Compensation Structure: Detailed breakdown of salary components, bonuses, and benefits
3. Schedule 3 - Company Policies: Key company policies applicable to managerial staff
4. Schedule 4 - Performance Metrics: Specific performance targets and evaluation criteria
5. Schedule 5 - Approved Outside Activities: List of pre-approved external commitments or board positions
6. Appendix A - Statutory Benefits: Summary of statutory benefits under Indonesian Labor Law
7. Appendix B - Confidential Information: Detailed description of what constitutes confidential information
8. Appendix C - Reporting Structure: Organizational chart showing reporting relationships
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