The Offer of Employment Contract is a crucial document used when formally extending employment opportunities to new hires in Indonesia. It serves as both an initial offer and a binding employment agreement, requiring careful preparation to ensure compliance with Indonesian labor law, particularly Law No. 13 of 2003 on Manpower and its implementing regulations. This document should be prepared when a company has selected a candidate and wishes to formalize the employment relationship. The contract must include mandatory provisions regarding working conditions, compensation, benefits, and termination procedures, while also protecting the employer's interests through confidentiality and intellectual property clauses. It forms the foundation of the employment relationship and may be referenced throughout the duration of employment for clarity on terms and conditions.
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1. Parties: Identification of the employer company and the employee, including their complete legal names and addresses
2. Background: Brief context about the employment offer and the company's decision to employ the individual
3. Definitions: Key terms used throughout the contract
4. Position and Duties: Job title, role description, responsibilities, and reporting structure
5. Employment Status: Whether permanent or fixed-term (PKWT) employment, including start date and duration if applicable
6. Probation Period: Duration and terms of the probationary period (maximum 3 months under Indonesian law)
7. Work Location: Primary workplace location and potential for relocation or remote work
8. Working Hours: Standard working hours, rest periods, and overtime arrangements
9. Compensation: Base salary, payment schedule, and method of payment
10. Statutory Benefits: Mandatory benefits including BPJS Health and Employment, THR (Religious Holiday Allowance)
11. Leave Entitlements: Annual leave, sick leave, religious holidays, and other statutory leave rights
12. Confidentiality: Protection of company confidential information and trade secrets
13. Intellectual Property: Ownership of work products and innovations created during employment
14. Termination: Grounds and procedures for termination in accordance with Indonesian labor law
15. Governing Law: Specification of Indonesian law as the governing law
1. Non-Competition: Restrictions on working for competitors after employment ends (use when protecting business interests is crucial)
2. Mobility Clause: Terms for potential relocations or transfers (use when the role may require geographical mobility)
3. Company Property: Provisions regarding company equipment and assets (use when employee is provided with significant company resources)
4. Performance Reviews: Process and frequency of performance evaluations (use when implementing formal review systems)
5. Additional Benefits: Non-statutory benefits such as bonuses, allowances, or insurance (use when offering above statutory minimum)
6. Remote Work: Terms and conditions for remote working arrangements (use when allowing work from home options)
7. Training Obligations: Required training and potential training bonds (use when significant training investment is involved)
8. Commission Structure: Details of commission-based compensation (use for sales or commission-based roles)
1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and key performance indicators
2. Schedule 2 - Compensation Structure: Breakdown of salary components, allowances, and benefits
3. Schedule 3 - Company Policies: Key company policies that form part of the employment terms
4. Schedule 4 - Code of Conduct: Expected behavioral standards and professional conduct guidelines
5. Appendix A - Statutory Benefits Summary: Details of all statutory benefits and entitlements under Indonesian law
6. Appendix B - Confidentiality Agreement: Detailed confidentiality obligations and procedures
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Relevant legal definitions
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Relevant Industries
Technology
Manufacturing
Financial Services
Retail
Healthcare
Education
Professional Services
Construction
Mining
Agriculture
Telecommunications
Hospitality
Energy
Transportation
E-commerce
Relevant Teams
Human Resources
Legal
Finance
Operations
Sales
Marketing
Information Technology
Research and Development
Customer Service
Administration
Production
Quality Assurance
Business Development
Strategy
Compliance
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Human Resources Director
Sales Manager
Software Engineer
Marketing Manager
Operations Manager
Account Executive
Project Manager
Research Analyst
Administrative Assistant
Production Supervisor
Quality Control Manager
Customer Service Representative
Business Development Manager
Financial Analyst
Legal Counsel
IT Support Specialist
Data Scientist
Product Manager
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