Employee Contracts For Small Business in Indonesia serve as essential legal documents that establish and govern the employment relationship between small business entities and their employees. These contracts must comply with Indonesian labor laws, particularly the Manpower Law (Law No. 13/2003) and the recent Omnibus Law reforms, while being practical and manageable for small business operations. The document is typically used when hiring new employees or formalizing existing employment relationships in small businesses with limited HR infrastructure. It includes crucial provisions on employment terms, compensation, benefits, working hours, leave entitlements, and termination procedures, all aligned with Indonesian regulatory requirements. The contract helps small businesses maintain legal compliance while protecting both employer and employee interests in a clear, straightforward manner.
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1. Parties: Identification of the employer (company) 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: Employee's job title, role, responsibilities, and reporting structure
5. Term of Employment: Employment start date and whether the contract is fixed-term or permanent
6. Working Hours and Location: Standard working hours, workplace location, and any flexibility arrangements
7. Compensation and Benefits: Salary, payment schedule, and mandatory benefits as per Indonesian law
8. Leave Entitlements: Annual leave, sick leave, religious holiday leave, and other statutory leave rights
9. Social Security and Insurance: BPJS participation and other mandatory insurance coverage
10. Confidentiality: Protection of company's confidential information and trade secrets
11. Intellectual Property: Ownership of work products and innovations created during employment
12. Termination: Grounds for termination and procedures in accordance with Indonesian law
13. Governing Law: Confirmation of Indonesian law application and dispute resolution procedures
14. Signatures: Execution clause and signature blocks for both parties
1. Probationary Period: Terms of initial probation period - include for permanent employees only
2. Non-Competition: Post-employment competition restrictions - include for senior positions or roles with access to sensitive information
3. Mobility Clause: Terms for potential workplace relocation - include if business has multiple locations
4. Commission Structure: Details of commission-based compensation - include for sales positions
5. Performance Reviews: Process and frequency of performance evaluations - include for permanent positions
6. Training Requirements: Mandatory training and professional development - include if specific qualifications are required
7. Overtime Arrangements: Terms for overtime work and compensation - include for non-managerial positions
8. Remote Work Provisions: Terms for working from home or remote locations - include if remote work is permitted
1. Schedule A - Job Description: Detailed description of role, responsibilities, and performance expectations
2. Schedule B - Compensation Details: Breakdown of salary components, allowances, and benefits
3. Schedule C - Company Policies: Key company policies that form part of employment terms
4. Schedule D - Confidential Information: Specific details of confidential information and handling requirements
5. Schedule E - Employee Handbook Reference: Reference to relevant sections of employee handbook
6. Appendix 1 - Required Documents: List of documents employee must provide (ID, certificates, etc.)
7. Appendix 2 - Social Security Details: BPJS registration and contribution information
Authors
Relevant legal definitions
Clauses
Relevant Industries
Retail
Food and Beverage
Technology
Professional Services
Manufacturing
Construction
Healthcare
Education
Hospitality
Agriculture
Creative Industries
Transport and Logistics
Personal Services
Digital Services
Local Trade
Relevant Teams
Human Resources
Administration
Sales
Marketing
Operations
Finance
Customer Service
Production
Quality Control
Information Technology
Warehouse
Front Office
Business Development
Project Management
Relevant Roles
General Manager
Office Manager
Administrative Assistant
Sales Representative
Customer Service Representative
Operations Manager
Marketing Coordinator
Accountant
Store Manager
Shop Assistant
Technical Support Specialist
Production Supervisor
Warehouse Coordinator
Front Desk Officer
Digital Marketing Specialist
Business Development Executive
HR Coordinator
Quality Control Inspector
Receptionist
Project Coordinator
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