This New Employment Contract For Existing Employees template is designed for Indonesian companies needing to update or formalize employment terms with their current workforce. It becomes particularly relevant during corporate restructuring, policy changes, or when transitioning from informal or outdated employment arrangements to standardized contracts. The document incorporates all mandatory provisions required by Indonesian labor law, including recent updates from the Job Creation Law, while allowing customization for specific roles and company policies. It serves as a crucial tool for ensuring legal compliance while clearly documenting the employment relationship, terms, and conditions. The template is structured to protect both employer and employee interests while maintaining alignment with Indonesian regulatory requirements regarding working conditions, benefits, and employment rights.
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1. Parties: Identification of the employer company and the employee with complete legal names and addresses
2. Background: Context of the employment relationship, including employee's current status and reason for new contract
3. Definitions: Key terms used throughout the agreement
4. Position and Duties: Job title, role description, responsibilities, and reporting structure
5. Term of Employment: Confirmation of permanent employment status and effective date of the new contract
6. Working Hours and Location: Standard working hours, work location, and any flexible arrangements as per Indonesian labor law
7. Remuneration: Base salary, payment schedule, and mandatory allowances including religious holiday allowance (THR)
8. Benefits and Leave: Statutory benefits, annual leave, sick leave, and other leave entitlements
9. Social Security: BPJS Healthcare and Employment participation details as required by law
10. Confidentiality: Protection of company 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 labor law
13. Post-Employment Obligations: Return of company property and continuing obligations after employment ends
14. Governing Law: Confirmation of Indonesian law as governing law and dispute resolution procedures
1. Non-Competition: Restrictions on working for competitors, used for senior positions or roles with access to sensitive information
2. Mobility Clause: Requirement to relocate or travel, included when job may require geographical flexibility
3. Performance Reviews: Structure and frequency of performance evaluations, included for management or performance-based roles
4. Bonus Structure: Details of any performance-based or discretionary bonuses, included for eligible positions
5. Remote Working: Terms for working from home or remote locations, included if applicable to the role
6. Training Obligations: Mandatory training requirements and associated commitments, included for specialized roles
7. Company Policies: Reference to specific company policies that form part of employment terms, included when policies are extensive
1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and performance expectations
2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits
3. Schedule 3 - Company Policies: List of applicable company policies and procedures
4. Appendix A - Confidential Information: Specific details of what constitutes confidential information
5. Appendix B - Employee Benefits Summary: Comprehensive overview of all benefits and entitlements
6. Appendix C - Code of Conduct: Company's code of conduct and ethical standards
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