The Renewable Contract of Employment is a fundamental document used in Indonesian employment relationships where ongoing employment is anticipated but structured in renewable terms. This contract type is particularly relevant when companies need to maintain flexibility while offering employment stability, commonly used for professional roles, project-based positions, or specialized functions. The document must comply with Indonesian Labor Law (Law No. 13 of 2003) and related regulations, particularly regarding contract duration, renewal conditions, and employee protections. It includes comprehensive terms covering employment conditions, benefits, and obligations while incorporating specific provisions for contract renewal periods and procedures. This contract type is especially useful for businesses seeking to maintain regulatory compliance while establishing clear, renewable employment terms with their workforce.
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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 basis for the contract
3. Definitions: Key terms used throughout the contract
4. Position and Duties: Job title, role description, and primary responsibilities
5. Term and Renewal: Duration of contract, renewal conditions, and notice periods as per Indonesian labor law
6. Working Hours and Location: Standard working hours, workplace location, and flexibility provisions
7. Compensation and Benefits: Salary, mandatory benefits, and other forms of compensation
8. Leave Entitlements: Annual leave, sick leave, religious holidays, and other permitted absences
9. Social Security and Insurance: BPJS participation and other mandatory insurance coverage
10. Confidentiality: Protection of company information and trade secrets
11. Intellectual Property: Ownership of work products and innovations
12. Performance Review: Evaluation process and performance expectations
13. Termination: Grounds for termination and associated procedures
14. Governing Law: Application of Indonesian law and jurisdiction
15. Signatures: Execution block for both parties
1. Probationary Period: Terms of initial probation period - include if applicable to new employees
2. Non-Competition: Post-employment competition restrictions - include for senior positions or sensitive roles
3. Relocation: Terms for potential relocation - include if position may require geographical mobility
4. Commission Structure: Details of sales or performance-based commission - include for sales roles
5. Training Requirements: Mandatory training and development obligations - include for specialized positions
6. Remote Working: Terms for work-from-home arrangements - include if remote work is permitted
7. Language Requirements: Language proficiency requirements - include for positions requiring specific language skills
8. International Travel: Terms for international business travel - include for positions requiring travel
1. Schedule A - Job Description: Detailed description of role, responsibilities, and reporting relationships
2. Schedule B - Compensation Details: Breakdown of salary components, allowances, and benefits
3. Schedule C - Company Policies: Key company policies and procedures applicable to the employee
4. Schedule D - Performance Metrics: Specific KPIs and performance evaluation criteria
5. Schedule E - Required Certifications: List of professional certifications or licenses required for the role
6. Appendix 1 - Code of Conduct: Company's code of conduct and ethical guidelines
7. Appendix 2 - Benefits Summary: Detailed description of all employee benefits and eligibility criteria
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