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One Year Fixed Term Contract for Indonesia

One Year Fixed Term Contract Template for Indonesia

This document is a fixed-term employment contract governed by Indonesian law, specifically compliant with Law No. 13/2003 on Manpower and its amendments under the Omnibus Law (Law No. 11/2020). It establishes a formal employment relationship for a defined one-year period, detailing all mandatory employment terms and conditions required under Indonesian labor regulations. The contract includes provisions for compensation, benefits, working hours, leave entitlements, and other employment terms while ensuring compliance with local labor laws, social security requirements, and relevant regional minimum wage regulations.

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One Year Fixed Term Contract

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What is a One Year Fixed Term Contract?

This One Year Fixed Term Contract is designed for use in Indonesia when establishing temporary employment relationships that comply with Indonesian labor laws, particularly Law No. 13/2003 on Manpower and Government Regulation No. 35/2021. It is suitable for project-based work, seasonal employment, or temporary positions where the duration is clearly defined as one year. The document incorporates all mandatory provisions required by Indonesian law, including statutory benefits, social security obligations (BPJS), and relevant minimum wage requirements. It protects both employer and employee interests while ensuring compliance with local employment regulations, making it appropriate for various industries and position levels. The contract should be used when the nature of work fits within Indonesian legal requirements for fixed-term employment, particularly avoiding its use for permanent, ongoing work which legally requires a permanent employment agreement.

What sections should be included in a One Year Fixed Term Contract?

1. Parties: Identification of the employer and employee, including their legal addresses and relevant registration numbers

2. Background: Brief context of the employment relationship and confirmation of fixed-term nature

3. Definitions: Key terms used throughout the agreement

4. Term of Employment: Specific start and end dates of the fixed-term contract, in compliance with Indonesian maximum duration regulations

5. Position and Duties: Employee's job title, role, responsibilities, and reporting structure

6. Place of Work: Primary work location and any flexibility arrangements

7. Working Hours: Standard working hours, overtime provisions, and rest periods as per Indonesian labor law

8. Remuneration: Base salary, mandatory allowances, and payment schedule

9. Statutory Benefits: BPJS Healthcare, BPJS Employment, and other mandatory benefits under Indonesian law

10. Leave Entitlements: Annual leave, sick leave, public holidays, and other statutory leave rights

11. Confidentiality: Protection of company confidential information and trade secrets

12. Intellectual Property: Ownership of work products and intellectual property created during employment

13. Performance Expectations: Performance standards, evaluation process, and consequences of underperformance

14. Termination: Grounds for termination and procedures in accordance with Indonesian labor law

15. Governing Law: Confirmation of Indonesian law as governing law and dispute resolution procedures

What sections are optional to include in a One Year Fixed Term Contract?

1. Mobility Clause: Required if the employee may need to work at different locations or travel

2. Non-Competition: Include if requiring post-employment restrictions, noting limited enforceability under Indonesian law

3. Probation Period: Optional trial period at the start of employment, if applicable under local regulations

4. Commission Structure: Required for sales positions or roles with variable compensation

5. Language Provision: Required if contract is bilingual, specifying which version prevails

6. Remote Work Provisions: Include if employee will work remotely full-time or part-time

7. Training Obligations: Include if specific training requirements or bonds are part of the employment

8. Company Policies: Reference to specific company policies if they form part of the contract

What schedules should be included in a One Year Fixed Term Contract?

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: List of applicable company policies referenced in the contract

4. Schedule 4 - Statutory Benefits: Details of all mandatory benefits under Indonesian law

5. Appendix A - Confidential Information: Definition and examples of confidential information specific to the role

6. Appendix B - Return of Company Property: List of company property provided to employee

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

Retail

Healthcare

Education

Construction

Mining

Agriculture

Professional Services

Hospitality

Telecommunications

Transportation

Energy

E-commerce

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research and Development

Customer Service

Administration

Quality Assurance

Business Development

Product Development

Supply Chain

Corporate Communications

Relevant Roles

Project Manager

Software Developer

Sales Representative

Marketing Coordinator

Financial Analyst

Research Assistant

Operations Manager

Customer Service Representative

Administrative Assistant

Technical Consultant

HR Coordinator

Business Development Manager

Data Analyst

Content Writer

Quality Control Specialist

Product Manager

Account Executive

Design Engineer

Legal Assistant

Supply Chain 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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