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Employee Appraisal Policy for Indonesia

Employee Appraisal Policy Template for Indonesia

A comprehensive policy document that establishes the framework and procedures for conducting employee performance appraisals in compliance with Indonesian labor laws, particularly Law No. 13/2003 (Manpower Law) and related regulations. The policy outlines the complete performance evaluation cycle, including timing, procedures, documentation requirements, and appeal processes, while ensuring fair and transparent assessment practices. It incorporates specific provisions for different employee categories and provides detailed guidance for managers and HR professionals in conducting effective and legally compliant performance reviews within the Indonesian business context.

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What is a Employee Appraisal Policy?

This Employee Appraisal Policy is designed for organizations operating in Indonesia seeking to implement a structured and legally compliant performance management system. The document is essential for businesses that need to establish clear, fair, and transparent evaluation procedures while adhering to Indonesian labor laws, particularly the Manpower Law (Law No. 13/2003) and related employment regulations. It provides comprehensive guidance on conducting performance reviews, setting objectives, maintaining documentation, and managing the evaluation process. The policy is particularly relevant in the context of Indonesia's growing economy and increasing focus on professional development and performance-based management practices. It includes provisions for both local and international business contexts, making it suitable for domestic companies and multinational corporations operating in Indonesia.

What sections should be included in a Employee Appraisal Policy?

1. Purpose and Scope: Defines the objectives of the policy and identifies who is covered by it

2. Legal Framework: References to relevant Indonesian labor laws and regulations that govern performance management

3. Definitions: Clear definitions of key terms used throughout the policy including types of evaluations, rating scales, and key performance indicators

4. Roles and Responsibilities: Outlines the responsibilities of HR, managers, employees, and other stakeholders in the appraisal process

5. Appraisal Cycle and Timing: Specifies the frequency of appraisals and the annual schedule for different evaluation types

6. Performance Evaluation Process: Detailed steps of how performance evaluations are conducted, including preparation, execution, and documentation

7. Rating System: Explanation of the performance rating scale and criteria for each rating level

8. Documentation Requirements: Specifies required forms, documentation procedures, and record-keeping requirements

9. Review and Appeal Process: Procedures for employees to seek clarification or appeal their performance evaluation

10. Confidentiality: Guidelines on handling and protecting performance-related information

11. Policy Review and Updates: Process for reviewing and updating the policy periodically

What sections are optional to include in a Employee Appraisal Policy?

1. Performance Improvement Plans: Detailed procedures for addressing underperformance, used when organization wants to formalize performance improvement processes

2. Remote Worker Evaluation: Special provisions for evaluating remote workers, included when organization has significant remote workforce

3. Probationary Period Evaluations: Special provisions for evaluating employees during probation, included when organization has specific probation requirements

4. Cross-Cultural Considerations: Guidelines for conducting appraisals in multicultural teams, included for international organizations

5. 360-Degree Feedback Process: Procedures for implementing comprehensive feedback systems, included when organization uses 360-degree evaluations

What schedules should be included in a Employee Appraisal Policy?

1. Performance Evaluation Form: Standard template for documenting performance evaluations

2. Competency Framework: Detailed description of competencies and behaviors evaluated

3. Rating Scale Guide: Detailed explanations and examples for each rating level

4. Timeline and Deadlines: Annual schedule of key dates and deadlines in the appraisal cycle

5. Appeal Form Template: Standard form for submitting performance evaluation appeals

6. Self-Assessment Form: Template for employee self-evaluation

7. Performance Improvement Plan Template: Standard template for documenting performance improvement requirements and progress

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

Financial Services

Retail

Healthcare

Education

Professional Services

Construction

Hospitality

Mining

Agriculture

Transportation

Telecommunications

Energy

Public Sector

Relevant Teams

Human Resources

Legal

Compliance

Senior Management

Middle Management

Operations

Administration

Finance

Information Technology

Sales

Marketing

Customer Service

Research and Development

Quality Assurance

Production

Relevant Roles

Chief Executive Officer

Human Resources Director

Department Manager

Line Manager

Team Leader

HR Manager

Performance Management Specialist

Training and Development Manager

Compensation and Benefits Manager

Employee Relations Manager

Operations Manager

Branch Manager

Regional Director

Compliance Officer

Legal Counsel

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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