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Dual Employment Agreement for Indonesia

Dual Employment Agreement Template for Indonesia

This document establishes a formal dual employment arrangement under Indonesian law, where an individual is simultaneously employed by two distinct entities. The agreement comprehensively addresses the division of responsibilities, working hours, remuneration, benefits, and obligations between all parties while ensuring compliance with Indonesian labor regulations, particularly Law No. 13 of 2003 on Manpower and related employment legislation. It includes specific provisions for managing potential conflicts of interest, confidentiality requirements, and the coordination of employment benefits between both employing entities.

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What is a Dual Employment Agreement?

This Dual Employment Agreement is designed for situations where an individual needs to be formally employed by two separate entities in Indonesia. It is commonly used in group companies, joint ventures, or collaborative business arrangements where an employee's expertise is required across multiple entities. The document ensures compliance with Indonesian labor laws, including Law No. 13 of 2003 on Manpower and the Job Creation Law (Omnibus Law), while clearly defining the employee's roles, responsibilities, working hours, and benefits allocation between both employers. This agreement is particularly relevant when organizations need to share specialized talent, maintain legal compliance in complex corporate structures, or facilitate inter-company collaboration while protecting all parties' interests.

What sections should be included in a Dual Employment Agreement?

1. Parties: Identifies all parties to the agreement, including both employing entities and the employee

2. Background: Explains the context of the dual employment arrangement and the relationship between the employing entities

3. Definitions: Defines key terms used throughout the agreement, including specific terminology related to dual employment

4. Term and Commencement: Specifies the duration of the agreement and when the dual employment arrangement begins

5. Roles and Responsibilities: Details the employee's positions and duties for each employing entity

6. Working Hours and Schedule: Specifies the allocation of working hours between both employers and total working hours in compliance with Indonesian labor law

7. Remuneration and Benefits: Details the salary, benefits, and how they are split or handled between the employing entities

8. Leave Entitlements: Specifies vacation, sick leave, and other leave entitlements and how they are coordinated between employers

9. Social Security and Insurance: Addresses BPJS and other mandatory benefits, specifying which employer is responsible for what portions

10. Confidentiality: Defines confidential information for each employer and obligations to maintain confidentiality

11. Intellectual Property: Addresses ownership of work product and innovations created during employment with either employer

12. Non-Competition and Conflicts: Addresses potential conflicts of interest and how they will be managed between the two roles

13. Termination: Specifies conditions for termination of the agreement and the impact on employment with each entity

14. Governing Law: Confirms Indonesian law as governing law and relevant jurisdiction

15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Dual Employment Agreement?

1. Mobility and Location: Required when work locations differ between employers or if travel between locations is necessary

2. Performance Management: Include when specific KPIs or performance measures need to be established for each role

3. Training and Development: Include when specific training requirements exist for either role

4. Equipment and Resources: Required when specifying which employer provides what equipment and resources

5. Expenses: Include when there are specific arrangements for expense allocation between employers

6. Secondment Provisions: Include if one employment is structured as a secondment

7. Data Protection: Include when handling personal or sensitive data requires specific provisions

8. Force Majeure: Include when specific provisions for unexpected events affecting dual employment are needed

What schedules should be included in a Dual Employment Agreement?

1. Schedule 1 - Job Descriptions: Detailed description of roles and responsibilities for each position

2. Schedule 2 - Remuneration Structure: Detailed breakdown of salary and benefits from each employer

3. Schedule 3 - Working Hours Schedule: Detailed weekly schedule showing allocation of time between employers

4. Schedule 4 - Company Policies: Relevant policies from each employer that apply to the employee

5. Appendix A - Consent Forms: Required forms and acknowledgments for dual employment under Indonesian law

6. Appendix B - Benefits Summary: Detailed summary of all benefits and which employer is responsible for each

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

































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Relevant Industries

Financial Services

Technology

Consulting

Shared Services

Manufacturing

Education

Healthcare

Professional Services

Media and Entertainment

Research and Development

Telecommunications

Conglomerates

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Research and Development

Business Development

Corporate Affairs

Compliance

Risk Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Department Head

Regional Manager

Technical Specialist

Project Manager

Research Director

Senior Consultant

Group Head

Operations Manager

IT Manager

HR Director

Legal Counsel

Business Development Manager

Finance Controller

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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