The Training Sponsorship Agreement is a crucial document used when an employer invests in an employee's professional development through formal training, education, or certification programs. This agreement, governed by Indonesian law, particularly Law No. 13 of 2003 on Manpower and related regulations, protects the interests of both parties by clearly defining the terms of sponsorship, including financial commitments, duration of training, post-training obligations, and conditions for repayment. It is commonly used for both domestic and international training programs, professional certifications, and advanced education opportunities. The agreement typically includes provisions for a mandatory service period (bond period) following the completion of training, ensuring the employer can benefit from their investment while providing the employee with valuable professional development opportunities.
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1. Parties: Identification of the sponsor (employer) and the sponsored party (employee)
2. Background: Context of the agreement, including the purpose of the sponsorship and training program
3. Definitions: Definitions of key terms used throughout the agreement
4. Training Program Details: Specific details of the training program, including nature, duration, and location of training
5. Financial Terms: Costs covered by the sponsor, payment terms, and reimbursement mechanisms
6. Bond Period: Duration of the mandatory service period following completion of training
7. Employee Obligations: Commitments and responsibilities of the employee during and after training
8. Employer Obligations: Commitments and responsibilities of the employer regarding training support
9. Performance Requirements: Expected academic or performance standards to be maintained
10. Repayment Terms: Conditions and calculations for repayment if the agreement is breached
11. Termination: Circumstances under which the agreement can be terminated by either party
12. Governing Law: Specification of Indonesian law as the governing law
13. Dispute Resolution: Process for resolving any disputes arising from the agreement
1. Overseas Training Provisions: Additional terms for training conducted outside Indonesia, including visa requirements and international travel
2. Intellectual Property Rights: Provisions regarding IP rights for any work or innovations developed during training
3. Confidentiality: Terms regarding confidential information accessed during training
4. Part-Time Work Arrangements: Terms for continuing work while undertaking training, if applicable
5. Training Extensions: Provisions for extending the training period if required
6. Third Party Obligations: Terms relating to external training providers or institutions
7. Insurance Coverage: Specific insurance requirements for the training period
1. Schedule 1 - Training Program Details: Detailed outline of the training program, including curriculum, timeline, and milestones
2. Schedule 2 - Cost Breakdown: Itemized list of costs covered under the sponsorship
3. Schedule 3 - Repayment Schedule: Detailed calculation method and schedule for repayment in case of breach
4. Schedule 4 - Academic Requirements: Specific academic or performance standards required
5. Appendix A - Required Documentation: List of documents required from the employee (certificates, transcripts, etc.)
6. Appendix B - Training Institution Details: Information about the training provider or educational institution
7. Appendix C - Employee Acknowledgment: Employee's signed acknowledgment of understanding all terms and conditions
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