The Regular Employee Contract is a fundamental document used to establish permanent employment relationships in Indonesia. It serves as the primary agreement between employers and employees, ensuring compliance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and the Omnibus Law reforms of 2020. This contract is essential for any business operating in Indonesia that wishes to hire permanent employees, as it provides legal protection for both parties and clearly defines employment terms, benefits, and obligations. The document must incorporate mandatory provisions required by Indonesian law, including social security benefits, religious holiday allowance (THR), and statutory leave entitlements. It's distinct from fixed-term or temporary employment contracts and is subject to specific termination procedures and employee protections under Indonesian labor regulations.
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1. Parties: Identification of the employer and employee with complete legal names and addresses
2. Background: Brief context about the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Position and Duties: Job title, role description, responsibilities, and reporting relationships
5. Term of Employment: Commencement date and nature of employment (permanent/indefinite period)
6. Work Location and Hours: Primary workplace location and standard working hours including breaks
7. Compensation and Benefits: Base salary, allowances, bonuses, and other benefits including THR
8. Leave Entitlements: Annual leave, sick leave, religious holidays, and other permitted absences
9. Social Security and Insurance: BPJS Healthcare and Employment participation details
10. Confidentiality: Protection of company confidential information and trade secrets
11. Intellectual Property: Ownership of work products and innovations created during employment
12. Termination: Grounds for termination and procedures following Indonesian labor law
13. Post-Employment Obligations: Return of company property and continuing obligations after employment ends
14. Governing Law: Specification of Indonesian law as governing law and dispute resolution procedures
15. Entire Agreement: Statement that the contract represents the complete agreement between parties
1. Probationary Period: Details of initial probationary period - optional for permanent employees but common in practice
2. Non-Competition: Restrictions on working for competitors - use with caution as enforceability is limited in Indonesia
3. Mobility Clause: Required for positions that may involve relocation or multiple work locations
4. Performance Reviews: Include if specific performance review processes and consequences are important
5. Training Requirements: Include if mandatory training or certification requirements exist
6. Company Policies: Reference to specific company policies if they are extensive and require separate documentation
7. Language: Required only if contract is bilingual, specifying which version prevails
1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and performance expectations
2. Schedule 2 - Compensation Structure: Detailed breakdown of salary components, allowances, and benefits
3. Schedule 3 - Company Policies: Key company policies and procedures referenced in main agreement
4. Appendix A - Code of Conduct: Company's code of conduct and ethical standards
5. Appendix B - Confidential Information: Specific details of what constitutes confidential information
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Financial Services
Retail
Healthcare
Education
Professional Services
Mining
Construction
Agriculture
Hospitality
Telecommunications
Transportation
Energy
Consumer Goods
Relevant Teams
Human Resources
Legal
Finance
Operations
Sales
Marketing
Information Technology
Research and Development
Production
Quality Control
Customer Service
Administration
Business Development
Supply Chain
Project Management
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
General Manager
Department Manager
Supervisor
Administrative Officer
Sales Executive
Marketing Manager
Human Resources Manager
Software Engineer
Accountant
Customer Service Representative
Operations Manager
Project Manager
Research Analyst
Production Manager
Quality Control Specialist
Business Development Manager
Finance Analyst
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