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Month To Month Employment Contract Template for Indonesia

A Month to Month Employment Contract governed by Indonesian law, specifically complying with Law No. 13 of 2003 (Manpower Law) and related regulations. This agreement establishes a flexible employment relationship that automatically renews on a monthly basis, clearly defining the terms of employment, compensation, benefits, and termination procedures. The contract includes mandatory provisions required by Indonesian labor law, including social security participation (BPJS), working hours, leave entitlements, and minimum wage compliance, while providing both employer and employee with the flexibility to terminate the arrangement with appropriate notice.

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What is a Month To Month Employment Contract?

The Month to Month Employment Contract is designed for situations requiring flexible employment arrangements in Indonesia while ensuring compliance with local labor laws. This contract type is particularly useful for project-based work, temporary positions, or when either party requires flexibility in the employment relationship. The document incorporates all mandatory elements required by Indonesian Manpower Law (Law No. 13 of 2003) and related regulations, including provisions for social security, working hours, leave entitlements, and termination procedures. It provides a balanced framework that protects both employer and employee interests while maintaining the flexibility of monthly renewal. This contract type is commonly used for probationary periods, seasonal work, or positions with uncertain long-term funding or duration.

What sections should be included in a Month To Month Employment Contract?

1. Parties: Identification of the employer and employee with complete legal names and addresses

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Term and Renewal: Duration of the monthly contract and conditions for renewal or extension

5. Position and Duties: Employee's job title, role, and primary responsibilities

6. Working Hours and Location: Standard working hours, workplace location, and any flexibility arrangements

7. Compensation and Benefits: Salary, mandatory benefits, and payment terms

8. Leave Entitlements: Annual leave, sick leave, and other permitted absences

9. Social Security and Insurance: Mandatory BPJS participation and other insurance provisions

10. Confidentiality: Protection of company confidential information

11. Termination: Notice periods and grounds for contract termination

12. Governing Law: Specification of Indonesian law as governing law

13. Dispute Resolution: Process for resolving employment-related disputes

What sections are optional to include in a Month To Month Employment Contract?

1. Intellectual Property Rights: Required for roles involving creative work or innovation

2. Non-Competition: For positions with access to sensitive business information

3. Remote Work Provisions: For positions allowing work from home or remote locations

4. Performance Reviews: When formal evaluation processes are part of employment

5. Training Requirements: For positions requiring specific ongoing training

6. Company Policies Compliance: When referencing specific internal policies

What schedules should be included in a Month To Month Employment Contract?

1. Schedule A - Job Description: Detailed outline of position responsibilities and requirements

2. Schedule B - Compensation Structure: Breakdown of salary components and benefits

3. Schedule C - Company Policies: Key workplace policies and procedures

4. Schedule D - Confidential Information: Specific details of what constitutes confidential information

5. Appendix 1 - Required Documents: List of mandatory documents for employment records

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

Jurisdiction

Indonesia

Document Type

Employment Contract

Cost

Free to use

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