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Contract For Contractual Employees for Indonesia

Contract For Contractual Employees Template for Indonesia

This is a standardized employment contract template designed for fixed-term contractual employees in Indonesia, compliant with Law No. 13/2003 (Manpower Law) and the Omnibus Law (Job Creation Law No. 11/2020). The document outlines the terms and conditions of employment, including duration, responsibilities, compensation, benefits, and termination provisions, while ensuring compliance with Indonesian labor regulations. It incorporates mandatory requirements for fixed-term employment contracts, social security obligations (BPJS), and relevant implementing regulations, providing a comprehensive framework for temporary employment relationships in the Indonesian context.

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What is a Contract For Contractual Employees?

The Contract For Contractual Employees serves as a crucial legal document for establishing fixed-term employment relationships in Indonesia. It is specifically designed to comply with Indonesian labor laws, including Law No. 13/2003 and the recent Omnibus Law reforms, which have introduced significant changes to fixed-term employment regulations. This contract type is particularly useful for project-based work, seasonal employment, or temporary positions with defined durations. The document ensures proper documentation of employment terms while protecting both employer and employee interests under Indonesian law. It includes essential provisions for working hours, compensation, benefits, and termination conditions, along with mandatory social security participation requirements. The contract's structure reflects recent regulatory updates and common market practices in Indonesian employment relationships.

What sections should be included in a Contract For Contractual Employees?

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

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

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

4. Term of Employment: Specific duration of the contract, including start and end dates, in compliance with Indonesian fixed-term contract regulations

5. Position and Duties: Employee's job title, role, responsibilities, and reporting relationships

6. Working Hours and Location: Standard working hours, work location, and provisions for overtime in accordance with labor laws

7. Compensation and Benefits: Salary, mandatory benefits, payment schedule, and any additional benefits

8. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements

9. Social Security and Insurance: BPJS participation and other mandatory insurance coverage

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

11. Termination: Grounds for termination and procedures in accordance with Indonesian labor law

12. Governing Law: Specification of Indonesian law as governing law and relevant jurisdiction

13. Execution: Signature blocks and execution details

What sections are optional to include in a Contract For Contractual Employees?

1. Probation Period: Details of probationary period if applicable (only for permanent employees, not typically used in fixed-term contracts)

2. Mobility Clause: Required for positions that may involve relocation or travel

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

4. Intellectual Property Rights: Required for creative or technical positions where IP creation is part of the role

5. Performance Reviews: Process for performance evaluation and potential contract renewal

6. Training Requirements: Specific training obligations and commitments

7. Language Requirements: For contracts requiring bilingual versions (Indonesian/English)

What schedules should be included in a Contract For Contractual Employees?

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

2. Schedule 2 - Compensation Details: 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: Specific details of what constitutes confidential information

5. Appendix A - Required Documents: List of documents required for employment registration and BPJS enrollment

6. Appendix B - Leave Policy: Detailed procedures for requesting and taking various types of leave

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

Cost

Free to use
Relevant legal definitions





























Clauses






























Relevant Industries

Manufacturing

Technology

Services

Construction

Retail

Education

Healthcare

Hospitality

Mining

Agriculture

Telecommunications

Financial Services

Energy

Transportation

E-commerce

Relevant Teams

Human Resources

Legal

Finance

Operations

Project Management Office

Administration

Compliance

Recruitment

Employee Relations

Payroll

Relevant Roles

Project Manager

Software Developer

Construction Supervisor

Research Assistant

Marketing Coordinator

Administrative Assistant

Sales Representative

Customer Service Representative

Production Supervisor

Technical Consultant

Education Coordinator

Healthcare Worker

Site Engineer

Financial Analyst

Operations Coordinator

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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