The Branch Manager Agreement serves as a crucial legal document for companies operating branch offices in Indonesia, establishing the formal relationship between the company and its branch manager. This agreement is essential when a company expands its operations through branch offices and needs to delegate management authority while maintaining corporate control. The document comprehensively addresses key aspects including managerial duties, operational authority, compensation structure, and compliance requirements under Indonesian law. It incorporates provisions mandated by Indonesian labor legislation, including Law No. 13 of 2003 on Manpower and the recent Omnibus Law, while also protecting the company's interests through confidentiality and non-compete clauses. The agreement is particularly important for both domestic and foreign companies establishing branch operations in Indonesia, as it helps ensure clear governance structure and compliance with local regulatory requirements.
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1. Parties: Identification of the company and the branch manager
2. Background: Context of the appointment and brief description of the branch operation
3. Definitions: Key terms used throughout the agreement
4. Appointment and Term: Formal appointment as branch manager and duration of the agreement
5. Duties and Responsibilities: Detailed description of the branch manager's role, authority, and responsibilities
6. Compliance with Laws and Policies: Obligation to comply with Indonesian laws and company policies
7. Compensation and Benefits: Base salary, bonuses, and standard benefits package
8. Working Hours and Leave: Standard working hours, overtime provisions, and leave entitlements
9. Reporting Requirements: Reporting structure and obligations to head office
10. Confidentiality: Protection of company confidential information
11. Intellectual Property: Ownership of IP created during employment
12. Non-Competition and Non-Solicitation: Post-employment restrictions on competition and employee solicitation
13. Termination: Grounds for termination and associated procedures
14. Handover Requirements: Obligations upon termination regarding company property and information
15. Governing Law: Application of Indonesian law and jurisdiction
16. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Housing and Relocation: Terms regarding housing allowance or provided accommodation, used when the manager is relocated
2. Performance Metrics: Specific KPIs and performance evaluation criteria, used when implementing performance-based compensation
3. International Travel: Terms regarding international travel requirements, used for branches with international operations
4. Training Obligations: Specific training requirements and commitments, used when specialized training is required
5. Vehicle Allowance: Terms regarding company vehicle or transport allowance, used when transportation is provided
6. Stock Options: Terms regarding participation in company stock option plans, used when equity compensation is offered
7. Family Benefits: Additional benefits for family members, used when family benefits package is provided
8. Emergency Powers: Special authority in emergency situations, used for high-risk or sensitive operations
1. Schedule 1 - Compensation Details: Detailed breakdown of salary, bonuses, and benefits
2. Schedule 2 - Branch Details: Specific information about the branch location and operations
3. Schedule 3 - Performance Targets: Annual targets and performance evaluation criteria
4. Schedule 4 - Company Policies: Key company policies applicable to the branch manager
5. Schedule 5 - Approved Authority Limits: Financial and operational authority limits
6. Appendix A - Handover Checklist: List of items and responsibilities to be handed over upon termination
7. Appendix B - Confidential Information: Definition and examples of confidential information
8. Appendix C - Territory Definition: Definition of geographical territory for non-compete provisions
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