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Driver Employment Contract for Indonesia

Driver Employment Contract Template for Indonesia

A comprehensive employment agreement governed by Indonesian law, specifically designed for the engagement of professional drivers. This contract complies with Indonesian labor regulations, including Law No. 13 of 2003 on Manpower and relevant transportation regulations. It covers essential employment terms such as duties, compensation, working hours, safety requirements, and vehicle responsibilities, while incorporating specific provisions required by Indonesian transportation and labor laws. The document ensures both employer and driver interests are protected while maintaining compliance with local regulatory requirements.

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Driver Employment Contract

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What is a Driver Employment Contract?

The Driver Employment Contract serves as a legally binding agreement between employers and professional drivers in Indonesia, establishing the terms and conditions of employment in accordance with Law No. 13 of 2003 on Manpower and relevant transportation regulations. This document is essential for companies engaging drivers for various purposes, including goods transportation, passenger services, or company-specific driving needs. It outlines crucial elements such as employment terms, compensation, working hours, safety protocols, and vehicle responsibilities while ensuring compliance with Indonesian labor laws and transportation regulations. The contract is designed to protect both employer and employee interests while maintaining clear operational guidelines and legal compliance.

What sections should be included in a Driver Employment Contract?

1. Parties: Identification of the employer company and the driver employee, including 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 contract, including specific driving and vehicle-related terminology

4. Position and Duties: Specific role, driving responsibilities, routes, and general duties of the driver

5. Term of Employment: Duration of employment, whether fixed-term or permanent, and any probationary period

6. Working Hours and Rest Periods: Regular working hours, rest breaks, and overtime arrangements in compliance with transportation regulations

7. Compensation and Benefits: Base salary, overtime rates, allowances, and statutory benefits including BPJS participation

8. Vehicle and Equipment: Details about assigned vehicles, maintenance responsibilities, and required equipment

9. Safety and Compliance: Safety protocols, traffic regulations compliance, and accident reporting procedures

10. Leave Entitlements: Annual leave, sick leave, religious holidays, and other statutory leave provisions

11. Termination: Grounds for termination, notice periods, and severance requirements per Indonesian law

12. Confidentiality: Protection of company information, customer details, and route information

13. Governing Law: Confirmation of Indonesian law governance and dispute resolution procedures

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

1. Performance Metrics: Specific KPIs and performance evaluation criteria, used when the employer has a formal driver evaluation system

2. Special Assignments: Terms for interstate or special driving assignments, included when the role may require occasional long-distance travel

3. Customer Service Standards: Specific customer interaction requirements, included for passenger transport drivers

4. Non-Competition: Restrictions on working for competitors, used for specialized or senior drivers

5. Housing Allowance: Terms for housing benefits, included when the driver needs to be based in a specific location

6. Fuel and Maintenance Allowance: Specific terms for fuel cards or maintenance reimbursement, used when drivers handle their own fuel/maintenance

7. Technology Usage: Rules for using GPS, tracking systems, or company apps, included when specific technology is used

What schedules should be included in a Driver Employment Contract?

1. Schedule A - Compensation Details: Detailed breakdown of salary components, allowances, and benefits calculation

2. Schedule B - Vehicle Specifications: Details of assigned vehicle(s), including maintenance schedules and handling procedures

3. Schedule C - Route Details: Specific routes, delivery points, or service areas assigned to the driver

4. Schedule D - Uniform and Equipment List: List of provided uniforms, safety equipment, and other necessary tools

5. Schedule E - Standard Operating Procedures: Detailed procedures for vehicle operation, safety protocols, and emergency responses

6. Appendix 1 - Driver's License and Certifications: Copies of required licenses, certifications, and training certificates

7. Appendix 2 - Company Policies: Relevant company policies including vehicle usage, accident reporting, and conduct guidelines

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions








































Clauses


































Relevant Industries

Transportation and Logistics

E-commerce

Food Delivery

Passenger Transport

Manufacturing

Retail

Construction

Mining

Agriculture

Courier Services

Tourism and Hospitality

Healthcare

Relevant Teams

Human Resources

Operations

Fleet Management

Logistics

Transportation

Legal

Compliance

Health and Safety

Training and Development

Administration

Relevant Roles

Professional Driver

Delivery Driver

Truck Driver

Bus Driver

Chauffeur

Company Driver

Fleet Driver

Heavy Vehicle Operator

Transport Operator

Courier Driver

Logistics Driver

Senior Driver

Lead Driver

Driver Supervisor

Transport Coordinator

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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