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One Year Employment Contract for Indonesia

One Year Employment Contract Template for Indonesia

A fixed-term employment agreement governed by Indonesian law, specifically compliant with Law No. 13 of 2003 on Manpower and the Job Creation Law (Omnibus Law) of 2020. This agreement establishes a one-year employment relationship between an employer and employee, detailing terms and conditions including position, duties, compensation, benefits, working hours, leave entitlements, and termination provisions. The contract incorporates mandatory requirements under Indonesian labor law, including social security (BPJS) participation, statutory leave rights, and proper termination procedures.

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One Year Employment Contract

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What is a One Year Employment Contract?

This One Year Employment Contract template is designed for use in Indonesia when establishing fixed-term employment relationships under Indonesian labor law. It is particularly suitable for positions where a defined contract period is preferred or required by business needs. The document ensures compliance with Law No. 13 of 2003 on Manpower, the Job Creation Law of 2020, and related implementing regulations, particularly Government Regulation No. 35 of 2021. It includes all mandatory provisions required by Indonesian law, such as working conditions, compensation structures, social security requirements, and termination procedures. This template is commonly used for project-based work, seasonal employment, or roles with specific duration requirements, and can be customized to accommodate various industries and position levels while maintaining legal compliance.

What sections should be included in a One Year Employment Contract?

1. Parties: Identification of the employer 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: Job title, role description, and primary responsibilities

5. Term of Employment: One-year duration, start date, and any probationary period details

6. Working Hours and Location: Standard working hours, location, and overtime provisions

7. Compensation and Benefits: Salary, allowances, and mandatory benefits as per Indonesian law

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

9. Confidentiality: Protection of company confidential information

10. Intellectual Property: Ownership of work created during employment

11. Social Security and Insurance: BPJS participation and other insurance provisions

12. Termination: Grounds for termination and procedures as per Indonesian law

13. Governing Law: Application of Indonesian law and jurisdiction

14. Entire Agreement: Integration clause and amendment procedures

What sections are optional to include in a One Year Employment Contract?

1. Non-Competition: Restrictions on working for competitors, used for senior positions or roles with access to sensitive information

2. Non-Solicitation: Restrictions on soliciting employees or customers, typically for sales or management roles

3. Mobility Clause: Requirement to work at different locations, used when job may require relocation

4. Performance Reviews: Structure and timing of performance evaluations, used for roles with clear KPIs

5. Commission Structure: Details of sales commission or performance bonuses, used for sales roles

6. Language Provision: Dual language provisions and controlling language, used when contract is bilingual

7. Remote Work Provisions: Terms for remote working arrangements, used for hybrid or remote positions

What schedules should be included in a One Year Employment Contract?

1. Job Description: Detailed outline of role responsibilities and requirements

2. Compensation Structure: Breakdown of salary components, allowances, and benefits

3. Company Policies: Key company policies that form part of the employment terms

4. Code of Conduct: Expected behavioral standards and ethical guidelines

5. Performance Metrics: Specific KPIs and performance expectations for the role

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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Relevant Roles

Software Developer

Sales Manager

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Data Analyst

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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