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Service Bond Agreement Template for Indonesia

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Key Requirements PROMPT example:

Service Bond Agreement

"I need a Service Bond Agreement for our Jakarta-based technology company, covering a 2-year bond period for software developers who will receive specialized AI training worth USD 25,000, with the agreement starting from March 2025."

Document background
Service Bond Agreements are essential documents used in Indonesia when companies make significant investments in employee training, education, or skill development. These agreements, governed by Indonesian labor law, particularly Law No. 13 of 2003 on Manpower, protect employers' training investments while ensuring fair treatment of employees. The Service Bond Agreement typically specifies the duration of the commitment, the nature of training provided, financial implications of early termination, and compliance requirements with local regulations. It's commonly used for graduate training programs, professional development initiatives, or specialized technical training where the company makes substantial investments in employee development. The document must balance the employer's interest in retaining trained staff with employee rights under Indonesian law.
Suggested Sections

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

2. Background: Context of the agreement, including the purpose of employment/training and the company's investment in the employee

3. Definitions: Definitions of key terms used throughout the agreement

4. Term of Service: Duration of the bond period and conditions for its commencement

5. Training and Development: Details of training programs, courses, or development opportunities provided

6. Financial Investment: Specification of the company's financial investment in the employee's development

7. Employee Obligations: Key responsibilities and commitments of the employee during the bond period

8. Bond Amount and Calculations: Details of the bond amount and how it will be calculated or pro-rated

9. Termination Provisions: Conditions and consequences of early termination

10. Confidentiality: Provisions regarding confidential information and trade secrets

11. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictional matters

12. Dispute Resolution: Process for resolving disputes under Indonesian law

13. Execution: Signature blocks and execution formalities

Optional Sections

1. International Training: Required when training includes overseas components, specifying additional obligations and arrangements

2. Educational Support: Used when the agreement includes formal education funding such as university degrees

3. Non-Competition: Additional restrictions on working with competitors (subject to Indonesian labor law limitations)

4. Guarantor Provisions: Required when a third-party guarantor is involved in securing the bond

5. Special Skills Development: For specialized technical training requiring specific commitments

6. Transfer Provisions: When employee might be transferred between group companies or locations

7. Insurance and Benefits: When special insurance or benefit arrangements are part of the package

Suggested Schedules

1. Schedule A - Training Program Details: Detailed outline of training programs, timelines, and completion criteria

2. Schedule B - Cost Breakdown: Itemized breakdown of training and development costs invested by the company

3. Schedule C - Bond Calculation Formula: Formula and examples for calculating remaining bond amounts at different points

4. Schedule D - Required Certifications: List of certifications or qualifications to be obtained during the bond period

5. Appendix 1 - Employee Acknowledgment: Specific acknowledgment of key terms and obligations

6. Appendix 2 - Company Policies: Relevant company policies that form part of the agreement

7. Appendix 3 - Training Schedule: Detailed timeline of training activities and milestones

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 | Serial Founder & Legal AI Author

Relevant legal definitions














































Clauses









































Relevant Industries

Technology

Manufacturing

Healthcare

Aviation

Engineering

Financial Services

Telecommunications

Oil and Gas

Mining

Education

Professional Services

Pharmaceuticals

Hospitality

Maritime

Relevant Teams

Human Resources

Legal

Training and Development

Talent Acquisition

Professional Development

Operations

Finance

Compliance

Technical Operations

Research and Development

Relevant Roles

Graduate Trainee

Management Trainee

Technical Specialist

Engineer

Professional Development Candidate

Medical Resident

Pilot Trainee

Software Developer

Financial Analyst

Research Scientist

Operations Trainee

Sales Executive

Healthcare Professional

Maritime Officer

Educational Professional

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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