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Temporary Work Agreement for Indonesia

Temporary Work Agreement Template for Indonesia

A Temporary Work Agreement (Perjanjian Kerja Waktu Tertentu/PKWT) is a fixed-term employment contract governed by Indonesian labor law, specifically Law No. 13 of 2003 and Government Regulation No. 35 of 2021. This agreement establishes a defined-period employment relationship between an employer and employee, specifying the duration, terms, and conditions of employment. It includes mandatory provisions required by Indonesian law regarding working hours, compensation, benefits, social security enrollment, and termination conditions. The agreement must comply with specific restrictions on temporary employment duration and renewal limitations as prescribed by Indonesian regulations.

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What is a Temporary Work Agreement?

The Temporary Work Agreement (PKWT) is a crucial document in Indonesian employment law, designed for situations where work is temporary, seasonal, or project-based in nature. This agreement type is regulated under Law No. 13 of 2003 on Manpower and Government Regulation No. 35 of 2021, which set specific requirements for duration, renewal terms, and mandatory benefits. The document is essential for companies hiring temporary workers, seasonal staff, or project-based employees, ensuring compliance with local labor regulations while protecting both employer and employee interests. It must include clear terms about the employment period, compensation, working conditions, and social security benefits, with strict adherence to Indonesian legal requirements regarding maximum duration and renewal limitations.

What sections should be included in a Temporary Work Agreement?

1. Parties: Identification of the employer and employee, including their complete legal names, addresses, and positions

2. Background: Context of the temporary employment relationship and the nature of the temporary work

3. Definitions: Key terms used throughout the agreement

4. Term of Employment: Specific start and end dates of the temporary employment period, including any probation period if applicable

5. Position and Duties: Details of the employee's role, responsibilities, and reporting relationships

6. Work Location: Primary workplace location and any requirements for travel or temporary relocation

7. Working Hours: Standard working hours, overtime arrangements, and rest periods in accordance with Indonesian labor law

8. Compensation and Benefits: Salary, mandatory allowances, and benefits as required by Indonesian law

9. Leave Entitlements: Annual leave, sick leave, and other types of leave as per Indonesian regulations

10. Social Security: BPJS Health and Employment participation requirements

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

12. Termination: Grounds for early termination and associated procedures

13. Governing Law: Specification of Indonesian law as the governing law

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

What sections are optional to include in a Temporary Work Agreement?

1. Mobility Clause: Required when the role may involve temporary assignments to different locations

2. Intellectual Property: Necessary when the employee may create or work with intellectual property

3. Non-Competition: Used when there are legitimate business interests to protect, subject to Indonesian law limitations

4. Performance Targets: Included when the role has specific measurable objectives

5. Training Requirements: Required when specific training or certifications are necessary for the role

6. Company Policies: Reference to specific company policies when they significantly affect the role

7. Safety and Health Protocols: Detailed when work involves specific health and safety requirements

What schedules should be included in a Temporary Work Agreement?

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

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

3. Schedule 3 - Working Hours Schedule: Detailed work schedule including shifts if applicable

4. Schedule 4 - Company Policies: Key company policies that form part of the employment terms

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

6. Appendix B - Social Security Forms: BPJS registration forms and related documents

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

Service Contract

Cost

Free to use
Relevant legal definitions




























Clauses






























Relevant Industries

Manufacturing

Construction

Technology

Retail

Hospitality

Agriculture

Mining

Education

Healthcare

Professional Services

Entertainment

Logistics

Food and Beverage

Tourism

Relevant Teams

Human Resources

Legal

Operations

Project Management Office

Administration

Recruitment

Compliance

Employee Relations

Talent Acquisition

Relevant Roles

Project Manager

Seasonal Worker

Contract Engineer

Temporary Administrative Assistant

Contract Developer

Interim Supervisor

Project Coordinator

Seasonal Sales Representative

Contract Researcher

Temporary Production Worker

Contract Consultant

Event Coordinator

Temporary Customer Service Representative

Contract Trainer

Project Specialist

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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