This Non-Fixed Term Contract template is designed for establishing permanent employment relationships in Indonesia, in compliance with Law No. 13 of 2003 on Manpower (as amended by Law No. 11 of 2020) and its implementing regulations. It is used when companies intend to hire employees on a permanent basis, as opposed to fixed-term or temporary arrangements. The document incorporates all mandatory provisions required by Indonesian labor law, including working hours, minimum wage requirements, statutory benefits, and social security obligations. It provides a comprehensive framework for employment relationships while allowing customization for specific roles and company requirements. This template is essential for businesses operating in Indonesia to ensure their employment practices align with local labor regulations while protecting both employer and employee interests.
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1. Parties: Identification of the employer and employee, including their legal details and addresses
2. Background: Brief context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Position and Duties: Employee's job title, role, responsibilities, and reporting structure
5. Work Location: Primary workplace location and possibility of relocation if applicable
6. Working Hours: Standard working hours, rest periods, and overtime arrangements as per Indonesian labor law
7. Compensation and Benefits: Salary, mandatory allowances, and other benefits including THR (Religious Holiday Allowance)
8. Leave Entitlements: Annual leave, sick leave, religious holidays, and other statutory leave rights
9. Social Security: BPJS Healthcare and Employment participation details
10. Confidentiality: Protection of company's confidential information and trade secrets
11. Intellectual Property: Ownership of work products and innovations created during employment
12. Company Policies: Compliance with company regulations and procedures
13. Termination: Grounds and procedures for termination as per Indonesian law
14. Governing Law: Confirmation of Indonesian law application and dispute resolution procedures
1. Probationary Period: Terms of initial probation period (maximum 3 months under Indonesian law) - include if probation is required
2. Non-Competition: Post-employment competition restrictions - include for senior positions or roles with access to sensitive information
3. Mobility Clause: Requirements for travel or temporary relocation - include for roles requiring regular travel
4. Performance Reviews: Structure and frequency of performance evaluations - include if formal review process exists
5. Commission Structure: Details of sales or performance-based compensation - include for sales or commission-based roles
6. Remote Working: Terms and conditions for remote work arrangements - include if remote work is permitted
7. Language Requirements: Language proficiency requirements and testing - include for roles requiring specific language skills
8. Training Obligations: Mandatory training requirements and bond terms - include if specific training commitments exist
1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and performance expectations
2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits
3. Schedule 3 - Company Policies: Key company policies and procedures applicable to the employment
4. Schedule 4 - Code of Conduct: Expected behavioral standards and ethical guidelines
5. Appendix A - Confidentiality Agreement: Detailed confidentiality obligations and protected information
6. Appendix B - Company Assets: List of company assets provided to employee
7. Appendix C - Medical Benefits: Details of healthcare coverage and medical benefits
8. Appendix D - Performance Metrics: Specific KPIs and performance measurement criteria
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Financial Services
Retail
Healthcare
Education
Construction
Mining
Agriculture
Hospitality
Professional Services
Telecommunications
Transportation
Energy
E-commerce
Relevant Teams
Human Resources
Finance
Marketing
Sales
Operations
Information Technology
Legal
Research and Development
Customer Service
Production
Quality Assurance
Business Development
Administration
Supply Chain
Public Relations
Relevant Roles
Chief Executive Officer
Chief Financial Officer
General Manager
Department Head
Senior Manager
Project Manager
Software Engineer
Account Manager
HR Manager
Marketing Executive
Sales Representative
Administrative Assistant
Operations Manager
Research Analyst
Customer Service Representative
Production Supervisor
Quality Control Inspector
Finance Manager
Technical Support Specialist
Business Development Manager
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