The Probationary Employment Agreement serves as a crucial legal document for organizations operating in Indonesia when hiring new employees. It establishes a defined evaluation period (maximum 3 months under Indonesian law) during which both parties can assess their compatibility while complying with Law No. 13 of 2003 on Manpower and the Job Creation Law No. 11 of 2020. This document is essential for protecting both employer and employee interests by clearly defining employment terms, performance expectations, and evaluation criteria during the probationary period. It should be used when hiring permanent employees who will undergo an initial assessment period before confirmation of permanent employment.
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1. Parties: Identification of the employer and employee, including complete legal names and addresses
2. Background: Context of the employment relationship and purpose of the probationary agreement
3. Definitions: Key terms used throughout the agreement
4. Position and Duties: Detailed description of the role, responsibilities, and reporting relationships
5. Duration of Probationary Period: Specific start and end dates of the probationary period (maximum 3 months as per Indonesian law)
6. Working Hours and Location: Standard working hours, days, and primary work location
7. Compensation and Benefits: Salary, allowances, and any applicable benefits during probation
8. Performance Evaluation: Assessment criteria, evaluation process, and performance expectations
9. Termination Provisions: Conditions and process for early termination or completion of probation
10. Confidentiality: Protection of company information and trade secrets
11. Company Policies: Compliance with workplace rules and procedures
12. Governing Law: Application of Indonesian law and jurisdiction
13. Execution: Signature blocks and execution requirements
1. Intellectual Property Rights: For positions involving creative work or innovation
2. Non-Competition: For senior positions or roles with access to sensitive information
3. Training Requirements: When specific training is required during probation
4. Travel Requirements: For positions involving business travel
5. Equipment and Tools: When company provides specific tools or equipment
6. Remote Work Provisions: For positions allowing work from home arrangements
7. Language Requirements: When specific language proficiency is required
8. Shift Work: For positions involving rotating shifts or irregular hours
1. Schedule A - Job Description: Detailed breakdown of role responsibilities and requirements
2. Schedule B - Compensation Details: Breakdown of salary components and applicable allowances
3. Schedule C - Performance Metrics: Specific KPIs and success criteria for the probationary period
4. Schedule D - Company Policies: Key workplace policies applicable during probation
5. Schedule E - Benefits Summary: Overview of applicable benefits during probation
6. Appendix 1 - Required Documents: List of documents required from employee (e.g., certifications, ID copies)
7. Appendix 2 - Reporting Structure: Organizational chart showing reporting relationships
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