This Permanent Employment Contract template is designed for use in Indonesia when establishing an indefinite-term employment relationship between an employer and employee. It complies with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and the Job Creation Law (Omnibus Law), and includes all mandatory provisions required under local regulations. The document should be used when hiring permanent employees in Indonesia, as opposed to fixed-term or temporary workers. It covers essential aspects such as employment terms, compensation, benefits, working conditions, and termination provisions, while ensuring compliance with mandatory requirements regarding social security (BPJS), religious holiday allowance (THR), and other statutory benefits. This template can be customized for various industries and positions while maintaining its core compliance with Indonesian employment law.
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1. Parties: Identification of the employer and employee, including their full legal names, addresses, and relevant identification details
2. Background: Brief context of the employment relationship and the intention to enter into a permanent employment agreement
3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty
4. Position and Duties: Details of the employee's role, job title, responsibilities, and reporting structure
5. Work Location: Primary workplace location and any flexibility arrangements
6. Working Hours: Standard working hours, rest periods, and overtime arrangements in compliance with Indonesian labor law
7. Compensation and Benefits: Base salary, allowances, bonuses, and mandatory benefits including BPJS participation
8. Leave Entitlements: Annual leave, sick leave, religious holiday leave, and other statutory leave provisions
9. Confidentiality: Obligations regarding company confidential information and trade secrets
10. Intellectual Property: Ownership and rights regarding work-created intellectual property
11. Code of Conduct: Expected behavior, compliance with company policies, and disciplinary procedures
12. Termination: Grounds for termination, notice periods, and severance provisions as per Indonesian law
13. Governing Law: Confirmation of Indonesian law application and dispute resolution procedures
14. Entire Agreement: Standard boilerplate confirming this as the complete agreement between parties
1. Probation Period: Details of initial probation period - optional for permanent employees but commonly included
2. Mobility Clause: Include when the role may require relocation or travel
3. Non-Competition: Post-employment restrictions - include for senior positions or roles with access to sensitive information
4. Performance Reviews: Include when specific performance review processes and KPIs need to be contractually binding
5. Remote Work Provisions: Include when the role allows for remote working arrangements
6. Commission Structure: Include for sales roles or positions with variable compensation
7. Training Requirements: Include when specific training or qualifications are required for the role
8. Language Requirements: Include when proficiency in specific languages is essential for the role
1. Job Description: Detailed description of role responsibilities and requirements
2. Compensation Structure: Detailed breakdown of salary components, allowances, and benefits
3. Company Policies: Key company policies that form part of the employment terms
4. Confidential Information: Specific list of information considered confidential
5. Required Certifications: List of professional certifications or qualifications required for the role
6. Benefits Summary: Detailed description of all employee benefits and eligibility conditions
Relevant legal definitions
Clauses
Relevant Industries
Technology
Manufacturing
Financial Services
Retail
Healthcare
Education
Professional Services
Construction
Hospitality
Energy
Mining
Agriculture
Telecommunications
Transportation
Media and Entertainment
Relevant Teams
Human Resources
Legal
Finance
Operations
Sales
Marketing
Information Technology
Research and Development
Production
Quality Assurance
Customer Service
Administration
Procurement
Public Relations
Business Development
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Chief Technology Officer
General Manager
Department Head
Senior Manager
Manager
Supervisor
Senior Executive
Executive
Administrator
Specialist
Analyst
Engineer
Accountant
HR Officer
Sales Representative
Customer Service Representative
Technical Support Engineer
Research and Development Officer
Production Worker
Quality Control Inspector
Marketing Executive
Legal Officer
Operations Manager
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