The Re Employment Contract serves as a fundamental legal document establishing an employment relationship under Indonesian law. It is essential for any business operating in Indonesia when hiring new employees or formalizing existing employment relationships. The contract must comply with Law No. 13 of 2003 on Manpower (as amended by the Job Creation Law) and related regulations, incorporating mandatory provisions regarding working conditions, benefits, and social security. This document is used to clearly define the rights and obligations of both employer and employee, protecting both parties' interests while ensuring alignment with Indonesian labor regulations. It includes essential elements such as position details, compensation structure, working hours, leave entitlements, and termination provisions, all crafted to meet specific requirements of Indonesian employment law.
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1. Parties: Identification of the employer and employee, including their legal details and addresses
2. Background: Brief context of the employment relationship and purpose of the agreement
3. Definitions: Definitions of key terms used throughout the agreement
4. Position and Duties: Details of the employee's role, responsibilities, and reporting structure
5. Term of Employment: Duration of employment (whether fixed-term or permanent) and effective date
6. Working Hours and Location: Standard working hours, workplace location, and potential for remote work
7. Compensation and Benefits: Base salary, mandatory allowances, and standard benefits as per Indonesian law
8. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements
9. Social Security and Insurance: BPJS participation and other mandatory insurance coverage
10. Confidentiality: Protection of company confidential information and trade secrets
11. Intellectual Property: Ownership of work products and intellectual property created during employment
12. Termination: Grounds and procedures for employment termination as per Indonesian 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
15. Entire Agreement: Standard boilerplate confirming this as the complete agreement between parties
1. Probation Period: Details of initial probation period - only for permanent employment contracts
2. Performance Reviews: Process and frequency of performance evaluations - for companies with formal review systems
3. Bonus and Incentives: Structure of any discretionary bonus or incentive schemes - if applicable
4. Mobility Clause: Terms regarding potential relocation or transfer - for companies with multiple locations
5. Non-Competition: Post-employment competition restrictions - subject to reasonable limitations under Indonesian law
6. Training Requirements: Mandatory training programs and associated bonds - if specific training is required
7. Company Policies: Reference to specific company policies - for larger organizations with detailed policy manuals
8. Sales Targets: Performance targets and consequences - for sales-related positions
9. Commission Structure: Details of commission calculations - for sales-related positions
1. Schedule 1 - Job Description: Detailed description of roles, responsibilities, and key performance indicators
2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits
3. Schedule 3 - Working Hours Schedule: Detailed working hours, shift patterns if applicable, and overtime arrangements
4. Schedule 4 - Company Policies Reference: List of applicable company policies and procedures
5. Schedule 5 - Mandatory Benefits: Details of BPJS and other statutory benefits
6. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines
7. Appendix B - Confidentiality Agreement: Detailed confidentiality terms and protected information
8. Appendix C - Asset List: List of company assets provided to employee
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