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Minimum Hours Contract for Indonesia

Minimum Hours Contract Template for Indonesia

This document establishes a minimum hours employment arrangement under Indonesian law, specifically complying with Law No. 13 of 2003 (Manpower Law) and related regulations. It guarantees employees a minimum number of working hours per week or month while allowing for flexibility in scheduling. The contract details payment terms, work patterns, and employee rights while ensuring compliance with Indonesian labor regulations regarding working hours, overtime, and minimum wage requirements. It provides security for employees through guaranteed minimum income while giving employers some flexibility in workforce management.

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What is a Minimum Hours Contract?

The Minimum Hours Contract is designed for use in Indonesia where employers need to balance workforce flexibility with employee security. It is particularly suitable for businesses with fluctuating demand patterns who wish to retain reliable staff by guaranteeing minimum hours and income. This contract type must comply with Indonesian Manpower Law (Law No. 13 of 2003) and related regulations, including provisions for minimum wage, overtime, and working hours. The document typically includes guaranteed minimum hours, payment terms, scheduling arrangements, and all mandatory employment terms required by Indonesian law. It's commonly used in service industries, retail, and hospitality sectors where work patterns may vary but consistent staffing is essential.

What sections should be included in a Minimum Hours Contract?

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

2. Background: Context of the employment relationship and purpose of the minimum hours arrangement

3. Definitions: Key terms used throughout the contract, including 'Minimum Hours', 'Regular Rate', 'Working Week', etc.

4. Duration of Agreement: Term of the contract, whether fixed-term or permanent, in accordance with Indonesian labor law

5. Minimum Hours Guarantee: Specification of the guaranteed minimum hours per week/month and how they will be calculated

6. Work Schedule: Details of how and when work will be scheduled, notice periods for shifts, and scheduling procedures

7. Compensation: Payment terms, rates of pay, overtime rates, and calculation methods in compliance with Indonesian wage regulations

8. Employee Obligations: Core duties, responsibilities, and performance expectations

9. Employer Obligations: Employer's commitments regarding minimum hours, scheduling, and payment

10. Leave Entitlements: Annual leave, sick leave, and other leave entitlements as per Indonesian law

11. Termination: Conditions and procedures for termination of employment, notice periods, and severance requirements

12. Governing Law: Specification that the agreement is governed by Indonesian law and relevant regulations

13. Signatures: Execution clause and signature blocks for both parties

What sections are optional to include in a Minimum Hours Contract?

1. Additional Benefits: Details of any additional benefits beyond statutory requirements, used when the employer offers extra benefits

2. Performance Reviews: Process and frequency of performance evaluations, included when regular reviews are part of the employment relationship

3. Confidentiality: Provisions regarding confidential information, used when employee has access to sensitive information

4. Non-Competition: Restrictions on working with competitors, included when relevant to the position and permitted by local law

5. Training Requirements: Specific training obligations and commitments, used when position requires ongoing training

6. Remote Working: Terms for any remote working arrangements, included when remote work is permitted

7. Probationary Period: Terms of initial probationary period, if applicable under Indonesian law and agreed between parties

What schedules should be included in a Minimum Hours Contract?

1. Schedule A - Work Pattern: Detailed breakdown of standard work patterns, shift rotations, and scheduling procedures

2. Schedule B - Wage Calculation: Detailed method for calculating regular wages, overtime, and any additional payments

3. Schedule C - Benefits Package: Comprehensive list and details of all benefits provided

4. Schedule D - Job Description: Detailed description of the role, responsibilities, and performance expectations

5. Appendix 1 - Company Policies: Reference to relevant company policies that form part of the employment terms

6. Appendix 2 - Statutory Entitlements: Summary of relevant statutory entitlements under Indonesian labor law

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

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions






























Clauses






























Relevant Industries

Retail

Hospitality

Food and Beverage

Healthcare

Customer Service

Entertainment

Tourism

Education

Call Centers

Logistics

Transportation

Manufacturing

Facilities Management

Security Services

Relevant Teams

Human Resources

Operations

Customer Service

Retail Operations

Facilities Management

Security

Food Service

Housekeeping

Sales

Warehouse

Front Office

Maintenance

Production

Guest Services

Administrative Support

Relevant Roles

Retail Associate

Customer Service Representative

Healthcare Assistant

Security Guard

Restaurant Server

Hotel Staff

Call Center Agent

Sales Associate

Warehouse Operator

Teaching Assistant

Front Desk Officer

Maintenance Worker

Store Clerk

Tour Guide

Factory Worker

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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