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Joint Employment Contract for Indonesia

Joint Employment Contract Template for Indonesia

A comprehensive employment agreement governed by Indonesian law that establishes and regulates a joint employment relationship between multiple employers and a single employee. This document outlines the shared responsibilities of the employers, the employee's duties to each employer, compensation arrangements, benefits allocation, and working conditions while ensuring compliance with Indonesian labor laws, particularly Law No. 13/2003 on Manpower and related regulations. The contract addresses crucial aspects such as social security contributions, workplace safety obligations, and dispute resolution mechanisms specific to multi-employer arrangements in Indonesia.

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Joint Employment Contract

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What is a Joint Employment Contract?

A Joint Employment Contract is essential when an employee works for multiple affiliated entities or in situations requiring shared employment responsibilities under Indonesian law. This arrangement is commonly used in group companies, joint ventures, or when specialized skills need to be shared across different legal entities. The contract must comply with Indonesian labor regulations, particularly Law No. 13/2003 on Manpower and related ministerial regulations. It details the allocation of employer obligations, including social security contributions, workplace safety responsibilities, and management oversight. The document is crucial for establishing clear lines of authority, defining work arrangements, and ensuring proper protection of all parties' interests while maintaining compliance with Indonesian employment laws. This type of contract is particularly relevant in situations involving international assignments, group company arrangements, or specialized technical roles where expertise is shared across multiple entities.

What sections should be included in a Joint Employment Contract?

1. Parties: Identification of all parties to the contract, including both employers and the employee, with complete legal names and addresses

2. Background: Context of the joint employment arrangement, including the business relationship between the employers and the purpose of the joint employment

3. Definitions: Key terms used in the agreement, including specific Indonesian legal terms and concepts

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 to each employer

6. Work Location and Hours: Primary workplace(s) and standard working hours for each employer

7. Compensation and Benefits: Salary structure, benefits, and allocation of costs between employers

8. Leave Entitlements: Various types of leave (annual, sick, religious holidays) and how they're managed between employers

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

10. Employers' Responsibilities: Division of obligations between employers including workplace safety, training, and supervision

11. Employee's Obligations: Employee's duties, confidentiality obligations, and compliance requirements

12. Termination: Grounds and procedures for termination, including notice periods and severance calculations

13. Dispute Resolution: Process for handling disputes between all parties

14. Governing Law: Confirmation of Indonesian law application and relevant jurisdictions

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

1. Intellectual Property Rights: Required when employee's work involves creation of IP, specifying ownership between employers

2. Non-Competition: Used when restricting employee's ability to work with competitors after employment ends

3. International Travel: Needed when position requires travel between international locations

4. Performance Management: Details of performance review process when complex reporting relationships exist

5. Rotation Schedule: Required when employee rotates between different employer locations

6. Training Commitments: Used when specific training requirements exist and cost-sharing between employers

7. Confidentiality Agreement: Detailed confidentiality terms when dealing with multiple employers' proprietary information

8. Cost Allocation: Detailed breakdown of how employment costs are shared between employers

What schedules should be included in a Joint Employment Contract?

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 working hours and allocation between employers

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

5. Appendix A - Required Permits: Copies of any required work permits or authorizations

6. Appendix B - Benefits Summary: Detailed description of all benefits and their administration

7. Appendix C - Reporting Structure: Organization chart showing reporting lines to each employer

8. Appendix D - Performance Metrics: Performance evaluation criteria for each employer

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

Manufacturing

Technology

Financial Services

Professional Services

Mining and Resources

Construction

Hospitality

Healthcare

Education

Telecommunications

Consulting

International Trade

Shared Services

Research and Development

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Research and Development

Business Development

Compliance

Risk Management

Project Management Office

Engineering

Product Development

Relevant Roles

Regional Manager

Technical Specialist

Project Director

Research Scientist

Finance Controller

Operations Manager

IT Systems Architect

HR Business Partner

Legal Counsel

Business Development Manager

Senior Engineer

Department Head

Product Manager

Chief Technology Officer

Compliance Officer

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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