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Overseas Employment Contract Template for Indonesia

This document is a comprehensive employment agreement governed by Indonesian law, specifically designed for Indonesian citizens working overseas. It incorporates all mandatory provisions required by Indonesian labor law, particularly Law No. 18 of 2017 on the Protection of Indonesian Migrant Workers, and includes detailed terms regarding employment conditions, worker protections, benefits, and repatriation arrangements. The agreement ensures compliance with both Indonesian regulatory requirements for overseas workers and relevant international labor standards while protecting the rights and interests of Indonesian workers employed abroad.

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What is a Overseas Employment Contract?

The Overseas Employment Contract serves as a fundamental legal document for Indonesian citizens seeking employment abroad, ensuring compliance with Indonesian labor laws and regulations, particularly Law No. 18 of 2017. This document is essential when an Indonesian worker is hired by a foreign employer and includes comprehensive provisions for worker protection, compensation, benefits, and repatriation arrangements. It is designed to protect the rights of Indonesian migrant workers while establishing clear obligations for foreign employers. The contract must be registered with the Indonesian Ministry of Manpower and typically requires verification by Indonesian diplomatic missions in the destination country. This document is crucial for legal compliance and worker protection in international employment arrangements involving Indonesian citizens.

What sections should be included in a Overseas Employment Contract?

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

2. Background: Context of the employment relationship, including the employer's business nature and the purpose of hiring an Indonesian worker

3. Definitions: Key terms used throughout the contract, including specific industry terminology and legal terms

4. Job Description and Placement: Detailed description of the position, job responsibilities, work location, and reporting structure

5. Term of Employment: Duration of employment, including start date, contract period, and renewal provisions as per Indonesian regulations

6. Remuneration and Benefits: Salary, overtime rates, bonuses, and all mandatory benefits as required by Indonesian law for overseas workers

7. Working Hours and Leave: Regular working hours, rest periods, public holidays, and various types of leave entitlements

8. Accommodation and Transportation: Details of housing provisions and transportation arrangements, including initial deployment and final return

9. Health Insurance and Social Security: Medical coverage, accident insurance, and social security benefits as required by Indonesian law

10. Obligations of the Parties: Specific duties and responsibilities of both employer and employee

11. Termination: Grounds for termination, notice periods, and severance payment requirements

12. Dispute Resolution: Procedures for handling disputes, including mediation and legal recourse options

13. Governing Law: Specification of Indonesian law as the governing law and relevant jurisdictional matters

What sections are optional to include in a Overseas Employment Contract?

1. Non-Competition and Confidentiality: Restrictions on post-employment competition and protection of confidential information, used when the position involves access to sensitive information

2. Training and Development: Provisions for professional development and required training, included when the employer offers specific training programs

3. Performance Review: Performance evaluation procedures and criteria, included when formal assessment processes are part of the employment

4. Repatriation: Detailed procedures for early repatriation in case of emergencies or specific circumstances, important for high-risk locations

5. Religious Observance: Specific provisions for religious practice and accommodation, included when relevant to the worker's needs

6. Language Requirements: Language proficiency requirements and language training provisions, included when language skills are crucial for the position

What schedules should be included in a Overseas Employment Contract?

1. Schedule 1 - Detailed Job Description: Comprehensive list of duties, responsibilities, and performance expectations

2. Schedule 2 - Compensation and Benefits Details: Detailed breakdown of salary components, allowances, and benefits calculations

3. Schedule 3 - Accommodation Standards: Specific details about housing provisions, including minimum standards and facilities

4. Schedule 4 - Insurance Coverage: Details of insurance policies, coverage limits, and claim procedures

5. Appendix A - Required Documents: List of necessary documentation for employment, including permits and certifications

6. Appendix B - Emergency Contacts and Procedures: Emergency contact information and protocols for various situations

7. Appendix C - Company Policies: Relevant workplace policies and procedures applicable to overseas workers

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

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use

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