This Continuous Employment New Contract template is designed for establishing permanent employment relationships in Indonesia, in full compliance with Law No. 13 of 2003 on Manpower and its amendments under the Job Creation Law (Law No. 11 of 2020). It should be used when hiring permanent employees in Indonesia, as opposed to fixed-term or temporary workers. The document includes all mandatory provisions required by Indonesian law, including terms related to probation periods (maximum 3 months), statutory benefits, working hours, leave entitlements, and termination procedures. It has been structured to accommodate recent regulatory changes and includes provisions for mandatory social security enrollment (BPJS Ketenagakerjaan and BPJS Kesehatan) and religious holiday allowance (THR).
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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: Key terms used throughout the agreement
4. Position and Duties: Job title, role description, responsibilities, and reporting structure
5. Term of Employment: Confirmation of permanent employment status and start date
6. Probation Period: Details of the initial probation period (maximum 3 months under Indonesian law)
7. Working Hours and Location: Standard working hours, workplace location, and overtime provisions
8. Compensation and Benefits: Base salary, mandatory allowances, and statutory benefits including BPJS participation
9. Leave Entitlements: Annual leave, sick leave, religious holiday leave, and other statutory leave rights
10. Confidentiality: Protection of company confidential information and trade secrets
11. Intellectual Property: Ownership of work products and innovations created during employment
12. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after employment
13. Code of Conduct: Expected behavior and compliance with company policies
14. Termination: Grounds for termination and procedures in accordance with Indonesian labor law
15. Governing Law: Confirmation of Indonesian law as governing law and dispute resolution procedures
1. Mobility Clause: Include when the position may require relocation or travel
2. Performance Review: Include when specific performance review processes and KPIs need to be documented
3. Special Allowances: Include when additional non-standard benefits or allowances are provided
4. Training Requirements: Include when specific training or certification requirements exist
5. Work From Home Provisions: Include when remote working arrangements are permitted
6. Company Car/Equipment: Include when company assets are provided for employee use
7. Sales Commission Structure: Include for sales positions with commission-based compensation
1. Schedule 1 - Job Description: Detailed description of roles, responsibilities, and performance expectations
2. Schedule 2 - Compensation Structure: Detailed 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 - Confidential Information: Specific details of what constitutes confidential information
5. Appendix A - Required Documents: List of documents required from employee (certificates, identifications, etc.)
6. Appendix B - Statutory Benefits: Details of all statutory benefits under Indonesian law
Authors
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Financial Services
Retail
Healthcare
Education
Professional Services
Construction
Mining
Hospitality
Telecommunications
Agriculture
Transportation
Energy
Consumer Goods
Relevant Teams
Human Resources
Legal
Finance
Operations
Sales
Marketing
Information Technology
Customer Service
Research and Development
Administration
Production
Quality Assurance
Procurement
Business Development
Compliance
Relevant Roles
Chief Executive Officer
Managing Director
General Manager
Department Head
Senior Manager
Manager
Assistant Manager
Supervisor
Senior Executive
Executive
Administrator
Specialist
Analyst
Officer
Coordinator
Engineer
Accountant
Sales Representative
Customer Service Representative
Technical Support Specialist
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