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Permanent Contract for Indonesia

Permanent Contract Template for Indonesia

A permanent employment contract governed by Indonesian law, specifically compliant with Law No. 13 of 2003 on Manpower (as amended by Job Creation Law No. 11 of 2020). This document establishes an indefinite-term employment relationship between an employer and employee, outlining all mandatory employment terms including position, compensation, benefits, working hours, and leave entitlements. The contract incorporates specific Indonesian legal requirements such as religious holiday allowance (THR), social security participation (BPJS), and local labor regulations while providing a comprehensive framework for the ongoing employment relationship.

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What is a Permanent Contract?

This Permanent Contract template is designed for use in establishing indefinite-term employment relationships under Indonesian law. It serves as a comprehensive employment agreement that complies with Law No. 13 of 2003 on Manpower and its amendments under the Job Creation Law No. 11 of 2020. The document should be used when hiring permanent employees in Indonesia, incorporating all mandatory elements required by local labor law including statutory benefits, social security provisions, and religious holiday allowances. It includes provisions for probationary periods (maximum 3 months), working hours, leave entitlements, and termination procedures aligned with Indonesian regulations. This template can be customized for various positions while maintaining compliance with local employment regulations and protecting both employer and employee interests.

What sections should be included in a Permanent Contract?

1. Parties: Identification of the employer and employee with complete legal names 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: Job title, role description, and primary responsibilities

5. Commencement and Duration: Start date and confirmation of permanent employment status

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

7. Working Hours and Location: Standard working hours, workplace location, and overtime provisions

8. Remuneration and Benefits: Salary, allowances, bonuses, and mandatory benefits including BPJS participation

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

10. Company Policies: Adherence to company regulations and policies

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

12. Dispute Resolution: Process for resolving employment-related disputes

13. Governing Law: Confirmation of Indonesian law as governing law

14. Signatures: Execution section for both parties

What sections are optional to include in a Permanent Contract?

1. Confidentiality: For roles involving access to sensitive information or trade secrets

2. Non-Competition: For senior positions or roles with access to strategic information (note: must be reasonable and limited in scope under Indonesian law)

3. Intellectual Property: For creative or technical roles involving creation of IP

4. Mobility Clause: For positions that may require relocation or regular travel

5. Performance Reviews: Detailed performance evaluation procedures for roles with specific KPIs

6. Training Requirements: For positions requiring specific ongoing training or certifications

7. Remote Working: For positions allowing work from home or remote working arrangements

8. Commission Structure: For sales or performance-based roles

What schedules should be included in a Permanent Contract?

1. Schedule 1 - Job Description: Detailed description of roles, responsibilities, and reporting lines

2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits

3. Schedule 3 - Company Policies: Key company policies and procedures referenced in the main agreement

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

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

6. Appendix B - Benefits Summary: Detailed description of all employee benefits and eligibility criteria

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

Professional Services

Construction

Mining

Agriculture

Hospitality

Telecommunications

Transportation

Energy

Media and Entertainment

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Research and Development

Production

Quality Assurance

Customer Service

Administration

Business Development

Supply Chain

Public Relations

Relevant Roles

Chief Executive Officer

General Manager

Department Head

Senior Manager

Manager

Supervisor

Administrative Officer

Engineer

Accountant

Sales Executive

Marketing Specialist

Human Resources Officer

Technical Specialist

Customer Service Representative

Operations Manager

Research Analyst

Project Manager

Business Development Executive

Quality Control Officer

Production Supervisor

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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