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Month To Month Contract Of Employment for Indonesia

Month To Month Contract Of Employment Template for Indonesia

This document is a month-to-month employment contract governed by Indonesian law, specifically compliant with Law No. 13 of 2003 on Manpower and related regulations. It establishes a flexible employment relationship that automatically renews on a monthly basis until terminated by either party with appropriate notice. The contract includes all mandatory provisions required under Indonesian labor law, including terms related to working hours, compensation, social security benefits (BPJS), leave entitlements, and termination procedures. It provides both employer and employee with the flexibility of a shorter commitment while ensuring all statutory rights and obligations are properly addressed.

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Month To Month Contract Of Employment

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What is a Month To Month Contract Of Employment?

The Month To Month Contract Of Employment is designed for situations requiring flexible employment arrangements under Indonesian law. It is particularly useful for project-based work, temporary staffing needs, or when parties wish to maintain flexibility in their employment relationship. The contract ensures compliance with Indonesian labor regulations, particularly Law No. 13 of 2003 on Manpower and Government Regulation No. 35 of 2021, while providing both parties with the ability to review and adjust the relationship monthly. This type of agreement is commonly used for probationary periods, seasonal work, or when companies are uncertain about long-term staffing needs. The document includes comprehensive provisions for compensation, benefits, working conditions, and termination procedures, all aligned with current Indonesian employment legislation.

What sections should be included in a Month To Month Contract Of Employment?

1. Parties: Identification of the employer and employee, including complete legal names, addresses, and relevant registration numbers

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Term and Renewal: Duration of the monthly contract and conditions for renewal or continuation

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

6. Work Location and Hours: Primary workplace and standard working hours

7. Compensation and Benefits: Salary, mandatory allowances, and other benefits as required by Indonesian law

8. Leave Entitlements: Annual leave, sick leave, and other statutory leave rights

9. Social Security: BPJS participation and related benefits as required by law

10. Confidentiality: Protection of company confidential information

11. Termination: Notice periods and procedures for contract termination

12. Governing Law: Specification of Indonesian law as governing law

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

What sections are optional to include in a Month To Month Contract Of Employment?

1. Probationary Period: Terms of initial probation period - include if the position requires evaluation before permanent status

2. Intellectual Property: IP ownership and assignment - include for creative or technical roles

3. Non-Competition: Post-employment competition restrictions - include for senior positions or roles with access to sensitive information

4. Performance Reviews: Structure and timing of performance evaluations - include for roles with formal review processes

5. Overtime: Overtime calculation and compensation - include for roles eligible for overtime pay

6. Remote Work: Terms for working from home or remote locations - include if remote work is permitted

7. Company Policies: Reference to specific company policies - include if employer has extensive internal policies

What schedules should be included in a Month To Month Contract Of Employment?

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

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

3. Schedule C - Company Policies: List of applicable company policies and procedures

4. Schedule D - Confidential Information: Specific types of confidential information covered by the agreement

5. Appendix 1 - Required Documents: List of documents required from employee (ID, certificates, etc.)

6. Appendix 2 - Social Security Details: Information about BPJS registration and benefits

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions























Clauses


























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Technology

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Human Resources

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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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