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New Hire Letter for Indonesia

New Hire Letter Template for Indonesia

A New Hire Letter under Indonesian law serves as a formal employment offer and preliminary employment agreement document that outlines the key terms and conditions of employment. It must comply with Indonesia's Manpower Law (Law No. 13 of 2003) and related regulations, including the Job Creation Law (Omnibus Law). The document typically includes essential employment terms such as position, salary, benefits, working hours, and other conditions required by Indonesian labor law, while serving as the initial step in establishing a formal employment relationship. It must be drafted in Bahasa Indonesia or bilingually with Bahasa Indonesia as the prevailing language.

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What is a New Hire Letter?

A New Hire Letter is a crucial document in Indonesian employment relations, used when extending a formal employment offer to a prospective employee. It serves as both an offer letter and a preliminary employment agreement, requiring careful attention to compliance with Indonesian labor laws, particularly the Manpower Law (Law No. 13 of 2003) and the Job Creation Law. The document should be issued before employment commences and must include mandatory employment terms such as position, compensation, working hours, and benefits as required by Indonesian regulations. While it can be drafted in dual languages, Indonesian law requires that it must either be in Bahasa Indonesia or, if bilingual, have Bahasa Indonesia as the prevailing language. The document forms the foundation of the employment relationship and may be referenced in future employment-related matters.

What sections should be included in a New Hire Letter?

1. Company Letterhead and Date: Official company letterhead with complete legal entity name and address, plus date of the letter

2. Candidate's Name and Address: Full name and current address of the prospective employee

3. Offer Statement: Clear statement offering the position, including job title and department

4. Start Date: Proposed employment commencement date

5. Position and Duties: Brief overview of role, reporting relationship, and key responsibilities

6. Employment Status: Whether permanent or fixed-term (PKWTT or PKWT) as per Indonesian law

7. Work Location: Primary workplace location and any flexibility arrangements

8. Compensation: Base salary, allowances, and payment schedule in accordance with Indonesian regulations

9. Working Hours: Standard working hours, days, and any shift arrangements

10. Benefits: Overview of statutory and company benefits including BPJS registration

11. Leave Entitlements: Annual leave, religious holiday leave, and other statutory leave rights

12. Acceptance Terms: How to accept the offer and by what deadline

13. Closing: Signature block for authorized company representative

What sections are optional to include in a New Hire Letter?

1. Probation Period: Include when the company implements a probation period (max 3 months as per Indonesian law)

2. Relocation Assistance: Include when offering relocation support for candidates moving from different cities/countries

3. Confidentiality Statement: Include for roles with access to sensitive information

4. Medical Examination: Include when pre-employment medical check is required

5. Background Check: Include when employment is subject to background verification

6. Work Permit: Include for foreign employees requiring KITAS/work permit

7. Language Requirements: Include when specific language proficiency is required

8. Non-Compete Clause: Include for senior positions or roles with access to trade secrets

What schedules should be included in a New Hire Letter?

1. Job Description: Detailed description of role, responsibilities, and performance expectations

2. Benefits Summary: Comprehensive list of all benefits and their terms

3. Company Policies Overview: Summary of key company policies that apply to the position

4. Required Documents Checklist: List of documents needed for employment processing

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

Offer Letter

Cost

Free to use
Relevant legal definitions




















Clauses























Relevant Industries

Technology

Manufacturing

Financial Services

Retail

Healthcare

Education

Construction

Mining

Agriculture

Telecommunications

Professional Services

Hospitality

Energy

Transportation

E-commerce

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Marketing

Sales

Research and Development

Customer Service

Administration

Product Development

Quality Assurance

Business Development

Corporate Communications

Compliance

Relevant Roles

Chief Executive Officer

Managing Director

General Manager

Department Head

Senior Manager

Project Manager

Software Engineer

Financial Analyst

Human Resources Officer

Marketing Executive

Sales Representative

Administrative Assistant

Operations Manager

Research Analyst

Customer Service Representative

Technical Support Specialist

Product Manager

Quality Assurance Engineer

Business Development Manager

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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