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Work Agreement Between Two Parties for Indonesia

Work Agreement Between Two Parties Template for Indonesia

A bilateral employment agreement governed by Indonesian law, specifically compliant with Law No. 13 of 2003 (Manpower Law) and related regulations. This document establishes the formal employment relationship between an employer and employee, detailing terms and conditions of employment including position, duties, compensation, benefits, working hours, leave entitlements, and termination provisions. The agreement incorporates mandatory requirements under Indonesian labor law while allowing for customization based on specific employment circumstances and company policies.

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Work Agreement Between Two Parties

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What is a Work Agreement Between Two Parties?

The Work Agreement Between Two Parties serves as a fundamental legal document in Indonesian employment relationships, establishing the rights and obligations of both employer and employee. This agreement is essential for compliance with Indonesian labor laws, particularly Law No. 13 of 2003 (Manpower Law) and its implementing regulations. It is used when formalizing any employment relationship in Indonesia, whether for permanent or fixed-term positions, and must include mandatory provisions regarding working conditions, compensation, benefits, and termination procedures. The document provides legal protection for both parties while ensuring adherence to minimum statutory requirements, including provisions for social security, religious holiday allowances (THR), and leave entitlements. It's adaptable for various employment scenarios while maintaining compliance with Indonesian employment regulations.

What sections should be included in a Work Agreement Between Two Parties?

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: Definitions of key terms used throughout the agreement

4. Position and Duties: Detailed description of the employee's role, responsibilities, and reporting structure

5. Term of Employment: Duration of employment (fixed-term or permanent) and probationary period if applicable

6. Working Hours and Location: Standard working hours, overtime provisions, and primary work location

7. Compensation and Benefits: Base salary, mandatory allowances, and standard benefits as required by Indonesian law

8. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements

9. Social Security and Insurance: BPJS participation and other mandatory insurance coverage

10. Obligations of the Employee: General duties, compliance requirements, and standard of conduct

11. Obligations of the Employer: Employer's commitments and responsibilities

12. Termination: Grounds for termination and associated procedures as per Indonesian law

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

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

15. Signatures: Execution block for both parties

What sections are optional to include in a Work Agreement Between Two Parties?

1. Confidentiality: Required for positions with access to sensitive information or trade secrets

2. Non-Competition: Used for senior positions or roles with access to strategic information, subject to Indonesian law limitations

3. Intellectual Property Rights: Necessary for creative or technical positions where IP creation is part of the role

4. Remote Working Provisions: Include when remote work is permitted

5. Performance Reviews: Details of performance evaluation process and frequency

6. Training and Development: Include when specific training requirements or development programs are part of the employment

7. Commission Structure: Required for sales positions or roles with variable compensation

8. International Travel: Include for positions requiring regular international travel

9. Company Property: Necessary when employee is provided with significant company assets or equipment

What schedules should be included in a Work Agreement Between Two Parties?

1. Schedule A - Compensation Details: Detailed breakdown of salary components, allowances, and benefits

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

3. Schedule C - Company Policies: Reference to or summary of relevant company policies and procedures

4. Schedule D - Benefits Summary: Detailed description of all benefits and eligibility criteria

5. Schedule E - Confidential Information: Definition and examples of confidential information if applicable

6. Appendix 1 - Required Documents: List of documents required from employee (certificates, permits, etc.)

7. Appendix 2 - Code of Conduct: Summary of key company conduct requirements and ethical standards

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

Technology

Financial Services

Retail

Healthcare

Education

Professional Services

Construction

Hospitality

Mining

Agriculture

Transportation

Telecommunications

Media and Entertainment

Energy

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Research and Development

Customer Service

Administration

Production

Quality Assurance

Procurement

Business Development

Corporate Communications

Relevant Roles

Chief Executive Officer

General Manager

Department Head

Senior Manager

Manager

Supervisor

Administrative Assistant

Technical Specialist

Sales Representative

Customer Service Representative

Human Resources Officer

Financial Analyst

Software Developer

Project Manager

Operations Manager

Marketing Executive

Research Analyst

Legal Counsel

Account Executive

Production Worker

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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