The Definite Employment Contract (PKWT) is a fundamental document in Indonesian employment law, designed for temporary or fixed-term employment arrangements. This type of contract is specifically regulated under Law No. 13 of 2003 on Manpower and subsequent regulations, which stipulate that it can only be used for work that will be completed within a specific timeframe, seasonal work, or work related to new products or activities still in trial phase. The contract must be written in Indonesian language and include essential provisions regarding employment terms, compensation, duties, and duration. It's crucial to note that Indonesian law places strict limitations on the duration of fixed-term contracts (maximum 5 years including renewals) and the types of work that can be performed under such arrangements. This document serves as a legally binding agreement that protects both employer and employee rights while ensuring compliance with local labor regulations.
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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 basis for the fixed-term contract
3. Definitions: Definitions of key terms used throughout the agreement
4. Term of Employment: Specific duration of the contract, including start and end dates, in compliance with Indonesian labor law limitations
5. Position and Duties: Details of the employee's role, responsibilities, and reporting relationships
6. Place of Work: Location(s) where the employee will perform their duties
7. Working Hours: Standard working hours, rest periods, and overtime arrangements in accordance with labor laws
8. Compensation and Benefits: Salary, allowances, bonuses, and other benefits, including payment terms and methods
9. Leave Entitlements: Annual leave, sick leave, religious holiday leave, and other statutory leave entitlements
10. Confidentiality: Obligations regarding company confidential information and trade secrets
11. Intellectual Property: Ownership and rights regarding work-related intellectual property
12. Performance Evaluation: Process and timing of performance reviews
13. Termination: Grounds and procedures for contract termination
14. Post-Employment Obligations: Obligations that continue after employment ends
15. Governing Law: Specification of Indonesian law as governing law
16. Dispute Resolution: Procedures for resolving employment-related disputes
17. Entire Agreement: Statement that the contract represents the complete agreement between parties
18. Execution: Signature blocks and execution requirements
1. Probationary Period: Details of any probationary period (Note: not legally allowed for PKWT but sometimes incorrectly included)
2. Mobility Clause: Terms regarding potential workplace relocation or travel requirements
3. Non-Competition: Restrictions on working for competitors (if applicable and enforceable)
4. Training Requirements: Specific training obligations and commitments
5. Company Policies: Reference to and incorporation of specific company policies
6. Safety and Health Protocols: Specific health and safety requirements, particularly relevant in certain industries
7. Remote Working Arrangements: Terms for any work-from-home or remote working provisions
8. Commission Structure: Detailed commission terms for sales or similar roles
9. Language Provision: For bilingual contracts, specification of prevailing language
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 working hours, shift patterns if applicable
4. Schedule 4 - Company Policies: Key company policies that form part of the employment terms
5. Schedule 5 - Confidential Information: Detailed list of what constitutes confidential information
6. Appendix A - Required Documents: List of documents required from employee (certifications, ID copies, etc.)
7. Appendix B - Employee Benefits Summary: Detailed description of all employee benefits and eligibility criteria
8. Appendix C - Statutory Declaration: Employee's declaration of compliance with employment requirements
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