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3 Year Employment Contract for Indonesia

3 Year Employment Contract Template for Indonesia

A comprehensive fixed-term employment agreement governed by Indonesian law, specifically compliant with Law No. 13 of 2003 on Manpower and the Job Creation Law (Omnibus Law). This document establishes a three-year employment relationship between an employer and employee, detailing terms and conditions including job responsibilities, compensation, benefits, working hours, leave entitlements, and termination provisions. The agreement incorporates mandatory Indonesian labor law requirements while providing flexibility to address specific industry needs and company policies.

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3 Year Employment Contract

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What is a 3 Year Employment Contract?

This document serves as a legally binding 3 Year Employment Contract between an employer and employee in Indonesia, structured to comply with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and Government Regulation No. 35 of 2021. It is designed for use when establishing fixed-term employment relationships that require a longer commitment period, typically for professional roles, specialized positions, or project-based work. The contract includes mandatory provisions required by Indonesian law while allowing customization for specific industry requirements, company policies, and position-specific terms. It's particularly relevant for organizations seeking to establish clear, compliant employment relationships while protecting both employer and employee interests through comprehensive terms covering compensation, benefits, duties, and termination provisions.

What sections should be included in a 3 Year Employment Contract?

1. Parties: Identification of the employer and employee, including their legal names, addresses, and registration details where applicable

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

3. Definitions: Key terms used throughout the agreement

4. Position and Duties: Job title, role description, responsibilities, and reporting relationships

5. Term and Duration: Specific start date and end date of the 3-year contract, including any probation period

6. Working Hours and Location: Standard working hours, overtime provisions, and primary work location

7. Remuneration: Base salary, payment schedule, and method of payment

8. Benefits and Allowances: Mandatory benefits including BPJS, healthcare, and any additional benefits

9. Leave Entitlements: Annual leave, sick leave, religious holiday leave, and other statutory leave provisions

10. Confidentiality: Protection of company confidential information and trade secrets

11. Intellectual Property: Ownership of work products and innovations created during employment

12. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after employment

13. Performance Review: Process and frequency of performance evaluations

14. Termination: Grounds for termination, notice periods, and severance provisions

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

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

17. Entire Agreement: Statement that the contract represents the complete agreement between parties

What sections are optional to include in a 3 Year Employment Contract?

1. Mobility Clause: Required if the employee may need to work at different locations or travel

2. Language Requirements: Needed if the contract is bilingual or if language proficiency is required

3. Work Permit Provisions: Required for foreign workers, including KITAS/work permit requirements

4. Secondment Terms: Needed if employee might be seconded to related companies

5. Bonus Scheme: Include if performance-based bonuses or incentives are offered

6. Training Requirements: Include if specific training or certifications are required

7. Company Policies: Reference to specific company policies if they form part of the contract

What schedules should be included in a 3 Year Employment Contract?

1. Schedule 1 - Job Description: Detailed description of roles, responsibilities, and key performance indicators

2. Schedule 2 - Compensation Structure: 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 - Confidential Information: Detailed list of what constitutes confidential information

5. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines

6. Appendix B - Leave Policy: Detailed leave application and approval procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions
































Clauses































Relevant Industries

Technology

Manufacturing

Financial Services

Professional Services

Retail

Healthcare

Education

Construction

Mining

Agriculture

Telecommunications

Transportation and Logistics

Energy

Media and Entertainment

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research and Development

Production

Quality Assurance

Business Development

Customer Service

Administration

Procurement

Engineering

Relevant Roles

General Manager

Department Head

Senior Manager

Project Manager

Technical Specialist

Software Engineer

Financial Analyst

HR Manager

Marketing Manager

Operations Manager

Research Scientist

Business Development Manager

Account Manager

Production Supervisor

Quality Control Manager

Legal Counsel

Sales Director

IT Manager

Regional Manager

Chief Technology Officer

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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