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Bond Agreement Between Employee And Employer for Indonesia

Bond Agreement Between Employee And Employer Template for Indonesia

A legally binding agreement governed by Indonesian law that establishes the terms and conditions under which an employer provides specialized training or education to an employee, in exchange for the employee's commitment to continue working for the employer for a specified period. The agreement details the training provisions, service period, financial obligations, and consequences of early termination, ensuring compliance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and relevant regulations under the Omnibus Law.

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What is a Bond Agreement Between Employee And Employer?

The Bond Agreement Between Employee And Employer is a crucial document used in Indonesian business contexts where companies make substantial investments in employee development through specialized training, education, or skill enhancement programs. This agreement is particularly relevant when employers commit significant resources to employee development and seek to protect their investment by ensuring a minimum service period from the trained employee. The document must comply with Indonesian labor laws, including Law No. 13 of 2003 on Manpower and the Job Creation Law (Omnibus Law), while balancing employer interests with employee rights. It typically includes detailed provisions about training commitments, service periods, financial obligations, and termination conditions, making it essential for businesses operating in Indonesia that invest heavily in employee development.

What sections should be included in a Bond Agreement Between Employee And Employer?

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

2. Background: Context of the agreement, including the purpose of the bond and general intent of both parties

3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty

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

5. Training Commitment: Details of training to be provided, including nature, duration, and cost of training

6. Service Commitment: Employee's obligation to serve the company for a specified period after training

7. Financial Terms: Cost implications, including training expenses, salary during training, and bond amount

8. Repayment Obligations: Conditions and calculations for repayment if the employee breaches the agreement

9. Employee Obligations: Specific duties, performance requirements, and behavioral expectations during the bond period

10. Employer Obligations: Company's commitments regarding training, support, and employment conditions

11. Termination: Circumstances under which the agreement can be terminated and the consequences

12. Dispute Resolution: Process for resolving any disputes arising from the agreement

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

What sections are optional to include in a Bond Agreement Between Employee And Employer?

1. International Training Provisions: Additional terms for overseas training, including visa requirements and international travel arrangements

2. Intellectual Property Rights: Terms regarding IP created during training or employment, particularly relevant for technical or creative roles

3. Non-Competition Clause: Restrictions on working with competitors after bond period, if applicable under Indonesian law

4. Confidentiality Obligations: Specific terms regarding confidential information acquired during training and employment

5. Performance Metrics: Specific performance standards and evaluation criteria, if tied to bond conditions

6. Guarantor Provisions: Terms involving a guarantor who will be liable if the employee defaults on repayment obligations

What schedules should be included in a Bond Agreement Between Employee And Employer?

1. Schedule 1: Training Program Details: Detailed outline of the training program, including curriculum, duration, and milestones

2. Schedule 2: Bond Amount Calculation: Formula and breakdown of the bond amount, including training costs and other investments

3. Schedule 3: Repayment Schedule: Detailed calculation method for repayment amounts based on time served

4. Schedule 4: Employee Benefits: Details of salary, allowances, and benefits during the bond period

5. Appendix A: Required Documents: List of documents required from employee, such as educational certificates and identification

6. Appendix B: Company Policies: Relevant company policies that form part of the bond agreement

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

Healthcare

Aviation

Financial Services

Engineering

Education

Telecommunications

Pharmaceuticals

Oil and Gas

Mining

Professional Services

Hospitality

Maritime

Relevant Teams

Human Resources

Legal

Training & Development

Talent Acquisition

Finance

Operations

Corporate Affairs

Compliance

Employee Relations

Relevant Roles

Graduate Trainee

Management Trainee

Technical Specialist

Engineer

Pilot

Healthcare Professional

Financial Analyst

Software Developer

Executive Trainee

Research Scientist

Operations Manager

Sales Executive

Project Manager

Maritime Officer

Industrial Specialist

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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