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Joint Employment Agreement for Indonesia

Joint Employment Agreement Template for Indonesia

This Joint Employment Agreement is a comprehensive legal document governed by Indonesian law, specifically compliant with Law No. 13/2003 on Manpower and related regulations. It establishes and regulates the employment relationship between an employee and multiple employers, typically two, defining the rights, obligations, and responsibilities of all parties involved. The agreement covers essential aspects such as work allocation, compensation sharing, reporting structures, and benefits administration, while ensuring compliance with Indonesian labor laws, social security requirements, and employment regulations.

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What is a Joint Employment Agreement?

The Joint Employment Agreement is designed for situations where an employee provides services to multiple employers simultaneously within Indonesia's legal framework. This arrangement is commonly used in corporate groups, shared service centers, or collaborative business ventures where resources need to be efficiently shared. The agreement ensures compliance with Indonesian labor laws, particularly Law No. 13/2003 on Manpower, while clearly defining how responsibilities, costs, and obligations are shared between the employers. It addresses crucial aspects such as work allocation, compensation structure, benefits administration, reporting relationships, and dispute resolution mechanisms. This document is essential for protecting the interests of all parties and ensuring clear accountability in complex employment relationships.

What sections should be included in a Joint Employment Agreement?

1. Parties: Identification of all parties to the agreement - both employers and the employee

2. Background: Context of the joint employment arrangement and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Term of Employment: Duration of employment, including start date and whether fixed-term or permanent

5. Position and Duties: Employee's role, responsibilities, and reporting relationships with each employer

6. Work Location and Schedule: Primary workplace(s) and allocation of time between employers

7. Compensation and Benefits: Salary, benefits, and how costs are shared between employers

8. Social Security and Insurance: BPJS participation and other mandatory benefits under Indonesian law

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

10. Confidentiality: Protection of confidential information of both employers

11. Intellectual Property: Ownership and rights to work product created during employment

12. Non-Competition and Non-Solicitation: Restrictions on competitive activities and solicitation

13. Termination: Grounds and procedures for termination by either employer or employee

14. Dispute Resolution: Process for resolving disputes between parties

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

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

1. Overseas Work: Include when employee may be required to work overseas

2. Training Requirements: Include when specific training or certifications are required

3. Performance Management: Include when specific performance metrics or review processes are needed

4. Inventions: Include when employee may be involved in creating inventions

5. Data Protection: Include when employee will handle personal or sensitive data

6. Severance Arrangements: Include when specific severance terms are agreed beyond statutory requirements

7. Cost Sharing: Include when employers have specific cost-sharing arrangements beyond standard compensation

What schedules should be included in a Joint Employment Agreement?

1. Schedule 1 - Job Description: Detailed description of roles and responsibilities for each employer

2. Schedule 2 - Compensation Structure: Detailed breakdown of salary, benefits, and allocation between employers

3. Schedule 3 - Work Schedule: Detailed weekly/monthly schedule showing time allocation between employers

4. Schedule 4 - Company Policies: Relevant policies from both employers that apply to the employee

5. Schedule 5 - Performance Metrics: Specific KPIs and performance evaluation criteria

6. Appendix A - Employee Information: Personal details and emergency contact information

7. Appendix B - Required Certifications: List of required professional certifications or qualifications

8. Appendix C - Benefit Details: Detailed description of all benefits and insurance coverage

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

Information Technology

Manufacturing

Professional Services

Financial Services

Shared Services

Consulting

Education

Healthcare

Research and Development

Corporate Services

Media and Entertainment

Telecommunications

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Research and Development

Corporate Services

Administration

Compliance

Risk Management

Project Management Office

Quality Assurance

Relevant Roles

Shared Services Manager

Group Financial Controller

Regional HR Director

IT Systems Administrator

Research Scientist

Project Manager

Business Analyst

Operations Director

Corporate Trainer

Legal Counsel

Quality Assurance Specialist

Technology Consultant

Executive Assistant

Department Head

Program 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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