The Work Contract Agreement serves as a fundamental legal document in Indonesian employment relationships, establishing the rights and obligations of both employer and employee in compliance with Law No. 13/2003 on Manpower and its implementing regulations. This document is essential for formalizing employment relationships in Indonesia, whether for fixed-term or permanent positions, and must include mandatory provisions regarding working conditions, compensation, benefits, and termination procedures. The agreement ensures legal protection for both parties while maintaining compliance with Indonesian labor laws, including recent reforms under the Job Creation Law. It's particularly important as it serves as the primary reference point for employment terms and helps prevent future disputes by clearly documenting the employment relationship's parameters.
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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: Key terms used throughout the agreement
4. Position and Duties: Job title, role description, and primary responsibilities
5. Term of Employment: Duration of employment (fixed-term or permanent) and effective date
6. Probation Period: Length and terms of the probationary period if applicable
7. Working Hours and Location: Regular working hours, overtime provisions, and place of work
8. Compensation and Benefits: Salary, allowances, bonuses, and mandatory benefits including BPJS participation
9. Leave Entitlements: Annual leave, sick leave, religious holidays, and other permitted absences
10. Employee Obligations: General duties, compliance requirements, and standard of conduct
11. Company Policies: Adherence to company regulations and procedures
12. Termination: Grounds for termination and procedures in accordance with Indonesian law
13. Governing Law: Specification of Indonesian law as governing law and dispute resolution procedures
14. Signatures: Execution clause and signature blocks for both parties
1. Confidentiality: Required when employee will have access to sensitive company information
2. Intellectual Property: Necessary for creative, technical, or research-based roles where IP creation is expected
3. Non-Competition: For senior positions or roles with access to sensitive business information, subject to Indonesian law limitations
4. Mobility Clause: For positions that may require relocation or travel
5. Performance Reviews: Detailed performance evaluation procedures for roles with specific KPIs
6. Training Requirements: For positions requiring specific training or certification maintenance
7. Commission Structure: For sales or performance-based compensation roles
8. Remote Working Provisions: For positions allowing work from home or remote working arrangements
1. Schedule 1 - Job Description: Detailed description of roles, responsibilities, and reporting structure
2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits
3. Schedule 3 - Company Policies: Key company policies and procedures relevant to the position
4. Schedule 4 - Performance Metrics: Specific KPIs and performance evaluation criteria
5. Appendix A - Required Documents: List of documents required from employee (certificates, permits, etc.)
6. Appendix B - Benefits Summary: Detailed description of all benefits and social security entitlements
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Financial Services
Retail
Healthcare
Education
Construction
Mining
Agriculture
Tourism and Hospitality
Professional Services
Telecommunications
Energy
Transportation and Logistics
E-commerce
Relevant Teams
Human Resources
Legal
Finance
Operations
Information Technology
Sales
Marketing
Research and Development
Production
Quality Assurance
Customer Service
Administration
Supply Chain
Project Management
Business Development
Relevant Roles
Chief Executive Officer
Managing Director
General Manager
Department Manager
Senior Engineer
Software Developer
Financial Analyst
Human Resources Manager
Marketing Executive
Sales Representative
Administrative Assistant
Project Manager
Research Scientist
Operations Manager
Customer Service Representative
Technical Specialist
Legal Counsel
Account Manager
Production Supervisor
Quality Control Inspector
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