The Director Employment Agreement serves as a crucial legal document in Indonesian corporate governance, establishing the formal relationship between a company and its director. This agreement is essential when appointing new directors or updating terms for existing directors, ensuring compliance with Indonesian Company Law (Law No. 40 of 2007) and related regulations. It addresses key aspects such as appointment terms, remuneration, duties, confidentiality, and termination provisions, while incorporating mandatory requirements under Indonesian labor and corporate laws. The document is particularly important for both private and public companies operating in Indonesia, as it helps define clear boundaries of authority, responsibility, and accountability for directors while protecting both the company's and director's interests.
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1. Parties: Identifies the company and the director, including their complete legal names and addresses
2. Background: Outlines the context of the appointment and the company's desire to employ the director
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Term: Details the position, effective date, and duration of appointment
5. Duties and Responsibilities: Comprehensive list of director's duties, including statutory obligations under Indonesian Company Law
6. Working Hours and Location: Specifies expected working arrangements and primary work location
7. Remuneration and Benefits: Details salary, bonuses, and other benefits including mandatory social security benefits
8. Leave Entitlements: Specifies annual leave, sick leave, and other types of leave as per Indonesian law
9. Confidentiality: Obligations regarding company confidential information and trade secrets
10. Intellectual Property: Assignment of IP rights created during employment
11. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after employment
12. Termination: Grounds and procedures for termination, notice periods, and consequences
13. Post-Termination Obligations: Continuing obligations after employment ends
14. Governing Law and Dispute Resolution: Specifies Indonesian law as governing law and dispute resolution procedures
15. General Provisions: Standard boilerplate clauses including amendments, notices, and severability
1. International Travel: Include when role requires significant international travel
2. Multiple Directorships: Include when director serves on multiple boards within company group
3. Share Options: Include when offering equity-based compensation
4. Expatriate Benefits: Include for foreign directors, covering relocation, housing, education allowances
5. Corporate Governance Compliance: Include for public companies or regulated industries
6. Force Majeure: Include detailed force majeure provisions if operating in volatile markets/regions
7. Anti-Corruption Compliance: Include for industries with high corruption risk or international operations
8. Data Protection: Include detailed provisions if role involves significant data handling
1. Schedule 1 - Remuneration Package: Detailed breakdown of salary, bonuses, and benefits
2. Schedule 2 - Position Description: Detailed role description and key performance indicators
3. Schedule 3 - Company Policies: List of applicable company policies the director must comply with
4. Schedule 4 - Share Option Terms: Details of any share option or equity participation scheme
5. Schedule 5 - Approved Outside Directorships: List of pre-approved external board positions
6. Appendix A - Statutory Declaration: Director's declaration of compliance with Indonesian Company Law requirements
7. Appendix B - Confidentiality Agreement: Detailed confidentiality terms and protected information
8. Appendix C - Return of Company Property: Checklist of company property to be returned upon termination
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Manufacturing
Technology
Healthcare
Real Estate
Mining and Resources
Retail and Consumer Goods
Energy
Telecommunications
Transportation and Logistics
Agriculture
Education
Professional Services
Construction
Hospitality
Relevant Teams
Legal
Human Resources
Company Secretariat
Board of Directors
Executive Management
Corporate Governance
Compliance
Risk Management
Finance
Administration
Relevant Roles
Chief Executive Officer
Managing Director
Executive Director
Non-Executive Director
Finance Director
Operations Director
Technical Director
Commercial Director
Regional Director
Country Director
Sales Director
Marketing Director
Human Resources Director
Legal Director
Technology Director
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