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Offer Letter And Employment Agreement for Indonesia

Offer Letter And Employment Agreement Template for Indonesia

A comprehensive employment document package used in Indonesia that combines an initial offer letter with a detailed employment agreement. This document is structured to comply with Indonesian Labor Law (Law No. 13 of 2003) and related regulations, including the Job Creation Law (Omnibus Law). It outlines the terms and conditions of employment, including position, compensation, benefits, working hours, and other key employment terms while ensuring compliance with local labor regulations, mandatory benefits, and social security requirements.

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What is a Offer Letter And Employment Agreement?

The Offer Letter and Employment Agreement is a crucial document used in Indonesia when formalizing employment relationships between companies and new employees. This document serves two primary purposes: first, the offer letter portion presents the initial employment terms in a clear, accessible format, while the employment agreement portion provides the detailed legal framework for the employment relationship. The document must comply with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and the Job Creation Law (Omnibus Law), including provisions for mandatory benefits, social security participation, and working conditions. It is typically used when hiring new employees, converting temporary workers to permanent status, or documenting significant changes in employment terms. The document forms the foundation of the employment relationship and serves as a key reference point for both parties throughout the employment period.

What sections should be included in a Offer Letter And Employment Agreement?

1. Parties: Identification of the employer company and the prospective employee, including their complete legal names and addresses

2. Background: Brief context about the employment offer and the company's decision to hire the employee

3. Definitions: Key terms used throughout the agreement that require specific definition

4. Position and Duties: Detailed description of the role, job title, responsibilities, and reporting relationships

5. Commencement Date and Employment Status: Start date and nature of employment (permanent/fixed-term) as per Indonesian labor law requirements

6. Probation Period: Details of the initial probation period (maximum 3 months under Indonesian law)

7. Work Location: Primary workplace location and any flexibility or mobility requirements

8. Working Hours: Standard working hours, breaks, and overtime arrangements in compliance with Indonesian labor laws

9. Compensation and Benefits: Base salary, mandatory allowances, and other benefits including social security (BPJS) participation

10. Leave Entitlements: Annual leave, sick leave, religious holiday leave, and other statutory leave entitlements

11. Termination: Conditions and procedures for termination in accordance with Indonesian labor laws

12. Governing Law: Specification of Indonesian law as the governing law

13. Signature Block: Space for dated signatures of both parties

What sections are optional to include in a Offer Letter And Employment Agreement?

1. Intellectual Property Rights: Include when the role involves creation of intellectual property or access to company IP

2. Non-Competition: Include for senior positions or roles with access to sensitive business information

3. Confidentiality: Include when the employee will have access to confidential information

4. Mobility Clause: Include when the role may require relocation or travel

5. Performance Reviews: Include when specific performance review processes are important to the role

6. Commission Structure: Include for sales positions or roles with variable compensation

7. Remote Working Arrangements: Include if the role involves regular remote work

8. Training Requirements: Include when specific training or certification requirements exist

9. Language Requirements: Include when the role requires specific language proficiency

What schedules should be included in a Offer Letter And Employment Agreement?

1. Schedule 1: Job Description: Detailed description of roles, responsibilities, and key performance indicators

2. Schedule 2: Compensation Structure: Detailed breakdown of salary components, allowances, and benefits

3. Schedule 3: Company Policies: Key company policies that form part of the employment terms

4. Schedule 4: Code of Conduct: Company's code of conduct and ethical requirements

5. Appendix A: Required Documents: List of documents required from employee (certificates, identification, etc.)

6. Appendix B: Statutory Benefits Summary: Summary of statutory benefits under Indonesian law

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


































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Relevant Industries

Technology

Manufacturing

Financial Services

Retail

Healthcare

Education

Professional Services

Construction

Hospitality

Energy

Mining

Agriculture

Telecommunications

Transportation

E-commerce

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Research and Development

Customer Service

Production

Quality Assurance

Business Development

Administration

Compliance

Strategic Planning

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Senior Manager

Department Manager

Software Engineer

Sales Representative

Administrative Assistant

Human Resources Manager

Marketing Specialist

Operations Manager

Project Manager

Account Executive

Research Analyst

Production Supervisor

Customer Service Representative

Technical Support Specialist

Business Development Manager

Financial Analyst

Quality Assurance Engineer

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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