This Non Fixed Term Employment Contract is designed for use in Indonesia when establishing permanent employment relationships between employers and employees. It serves as a comprehensive agreement that complies with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower as amended by the Job Creation Law No. 11 of 2020. The document should be used when hiring permanent employees in Indonesia, as opposed to fixed-term or temporary workers. It includes mandatory provisions required by Indonesian law regarding employment terms, benefits, social security (BPJS), religious holiday allowances (THR), and other statutory requirements. The contract provides security for both parties by clearly defining the employment relationship, rights, obligations, and termination procedures in accordance with Indonesian labor regulations.
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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 purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Appointment and Position: Details of the employment position, job title, and reporting relationship
5. Duties and Responsibilities: Detailed description of the employee's role and responsibilities
6. Work Location: Primary workplace location and potential for relocation if required
7. Working Hours: Standard working hours, rest periods, and overtime arrangements as per Indonesian labor law
8. Remuneration and Benefits: Salary, allowances, bonuses, and mandatory benefits including BPJS
9. Leave Entitlements: Annual leave, sick leave, religious holiday leave, and other statutory leave rights
10. Probation Period: Terms of the initial probation period (maximum 3 months under Indonesian law)
11. Code of Conduct: Expected behavioral standards and compliance with company policies
12. Termination: Grounds and procedures for termination as per Indonesian labor law
13. Governing Law: Confirmation of Indonesian law as governing law
14. Dispute Resolution: Process for resolving employment-related disputes
1. Confidentiality: Required for positions with access to sensitive information or trade secrets
2. Non-Competition: Used for senior positions or when employee has access to critical business information
3. Intellectual Property Rights: Necessary for creative or technical positions where IP creation is part of the role
4. Performance Review: Details of performance evaluation process, if not covered in company policies
5. Training Requirements: Specific training obligations and commitments
6. Travel Requirements: Include when position requires regular travel
7. Shift Work Provisions: Required for positions involving shift work
8. Remote Work Arrangements: Include if position allows for remote working options
9. Sales Targets and Commissions: Required for sales positions with performance-based compensation
1. Schedule 1 - Job Description: Detailed breakdown of job responsibilities and requirements
2. Schedule 2 - Compensation Structure: Detailed breakdown of salary components, allowances, and benefits
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. Appendix A - Code of Conduct: Detailed company code of conduct
6. Appendix B - Confidentiality Agreement: Detailed confidentiality obligations if applicable
7. Appendix C - Benefits Summary: Summary of all employee benefits including BPJS coverage
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