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Regular Employment Contract for Indonesia

Regular Employment Contract Template for Indonesia

A Regular Employment Contract under Indonesian law is a formal agreement that establishes an employment relationship between an employer and employee in Indonesia. The contract is drafted in compliance with Law No. 13 of 2003 on Manpower (as amended by Law No. 11 of 2020) and related regulations. It covers essential employment terms including position, duties, compensation, benefits, working hours, leave entitlements, and termination provisions. The document ensures both parties' rights and obligations are clearly defined while meeting all statutory requirements under Indonesian labor law, including mandatory provisions for social security (BPJS) participation and worker protections.

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What is a Regular Employment Contract?

This Regular Employment Contract template is designed for use in Indonesia when establishing a permanent employment relationship between an employer and an employee. It is particularly relevant for both domestic Indonesian companies and multinational corporations operating in Indonesia who need to ensure compliance with local labor laws. The document incorporates all mandatory provisions required under Indonesian law, particularly Law No. 13 of 2003 on Manpower (as amended by the Job Creation Law No. 11 of 2020) and its implementing regulations. The contract includes essential terms such as position details, compensation structure, working hours, leave entitlements, and termination provisions, while also allowing for customization based on specific company policies and industry requirements. It serves as a foundational document for establishing clear, legally-compliant employment relationships in the Indonesian context.

What sections should be included in a Regular Employment Contract?

1. Parties: Identification of the employer and employee, including their legal details 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, responsibilities, and reporting structure

5. Term of Employment: Employment start date and whether the contract is fixed-term or permanent

6. Probation Period: Length and terms of the probationary period, if applicable

7. Working Hours and Location: Regular working hours, overtime provisions, and primary work location

8. Compensation and Benefits: Base salary, mandatory allowances, and statutory benefits

9. Leave Entitlements: Annual leave, sick leave, religious holidays, and other statutory leave provisions

10. Social Security: BPJS Health and Employment participation details

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

12. Governing Law: Confirmation of Indonesian law application and dispute resolution procedures

What sections are optional to include in a Regular Employment Contract?

1. Confidentiality: Required when employee will have access to sensitive company information

2. Non-Competition: Used for senior positions or when employee will have access to trade secrets

3. Intellectual Property: Necessary when employee's role involves creation of IP or technical innovations

4. Performance Review: Details of performance evaluation process and frequency

5. Relocation: Include when position may require relocation or regular travel

6. Training Obligations: Used when company provides specific training with binding terms

7. Special Allowances: For positions eligible for additional benefits beyond standard compensation

8. Remote Work Provisions: Include when role allows for remote working arrangements

What schedules should be included in a Regular Employment Contract?

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

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

3. Schedule 3 - Company Policies: Reference to applicable company policies and procedures

4. Schedule 4 - Code of Conduct: Employee behavior expectations and compliance requirements

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

6. Appendix B - Benefits Summary: Detailed description of all 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

Construction

Mining

Agriculture

Telecommunications

Professional Services

Hospitality

Transportation

Energy

Consumer Goods

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Research and Development

Production

Quality Assurance

Customer Service

Administration

Business Development

Supply Chain

Corporate Communications

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Operating Officer

General Manager

Department Manager

Supervisor

Administrative Assistant

Sales Representative

Marketing Executive

HR Manager

Finance Manager

Account Executive

Software Developer

Project Manager

Operations Manager

Customer Service Representative

Research Analyst

Production Manager

Quality Control Specialist

Business Development Manager

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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