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Yearly Contract Employment for Indonesia

Yearly Contract Employment Template for Indonesia

This document is a fixed-term employment contract governed by Indonesian law, specifically compliant with Law No. 13 of 2003 on Manpower and Government Regulation No. 35 of 2021. It establishes a one-year employment relationship between an employer and employee, outlining all mandatory provisions required under Indonesian labor law including position, compensation, benefits, working hours, and termination conditions. The contract ensures compliance with local employment regulations while protecting both employer and employee interests through clear terms and conditions of employment.

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What is a Yearly Contract Employment?

This Yearly Contract Employment agreement is designed for use in Indonesia when establishing fixed-term employment relationships under Indonesian labor law. It is particularly suitable for positions where a defined contract period is needed, complying with the specific requirements of Law No. 13 of 2003 on Manpower and its implementing regulations. The document incorporates all mandatory elements required by Indonesian legislation, including clear terms on compensation, benefits, working conditions, and social security provisions. It's structured to protect both employer and employee interests while ensuring compliance with local labor regulations, making it suitable for various industries and professional roles where fixed-term employment is permitted under Indonesian law.

What sections should be included in a Yearly Contract Employment?

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. Term of Employment: Specific duration of the contract, start date, and end date

5. Position and Duties: Job title, role description, and main responsibilities

6. Work Location: Primary workplace location and any mobility requirements

7. Working Hours: Standard working hours, overtime provisions, and rest periods

8. Compensation: Base salary, payment schedule, and mandatory allowances

9. Benefits: Statutory benefits including BPJS Employment and Health Insurance

10. Leave Entitlements: Annual leave, sick leave, and other statutory leave provisions

11. Confidentiality: Protection of company confidential information

12. Intellectual Property: Ownership of work products and innovations

13. Termination: Grounds for termination and associated procedures

14. Governing Law: Application of Indonesian law and jurisdiction

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

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

1. Probation Period: Used when the employer wishes to include an initial probation period, though note this is uncommon in fixed-term contracts under Indonesian law

2. Non-Competition: Include when protecting business interests from competitive activities is crucial

3. Performance Review: Include when specific performance evaluation criteria and periods need to be established

4. Remote Work Provisions: Include when the role involves remote working arrangements

5. Commission Structure: Include for sales or performance-based roles with variable compensation

6. Training Requirements: Include when specific training or certification requirements exist

7. Travel Requirements: Include when the role involves regular business travel

8. Language Requirements: Include when the contract needs to specify language proficiency requirements

What schedules should be included in a Yearly Contract Employment?

1. Schedule A - Job Description: Detailed description of roles, responsibilities, and reporting relationships

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

3. Schedule C - Company Policies: Key company policies and procedures applicable to the employee

4. Schedule D - Performance Metrics: Specific KPIs and performance evaluation criteria

5. Schedule E - Benefits Summary: Detailed description of all benefits and their terms

6. Appendix 1 - Code of Conduct: Company's code of conduct and ethical guidelines

7. Appendix 2 - Compliance Requirements: Industry-specific compliance requirements and certifications

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

Construction

Education

Healthcare

Hospitality

Mining

Agriculture

Professional Services

Telecommunications

Transportation

Energy

Media and Entertainment

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Customer Service

Research and Development

Production

Quality Assurance

Administration

Business Development

Training and Development

Compliance

Relevant Roles

Project Manager

Software Developer

Sales Representative

Marketing Specialist

Financial Analyst

Research Associate

Operations Manager

Customer Service Representative

Business Development Manager

Administrative Assistant

Technical Consultant

Account Manager

Content Writer

Data Analyst

Production Supervisor

Quality Control Specialist

HR Coordinator

Training Specialist

Product Manager

Legal Assistant

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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