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Employment Contract Foreign Worker Template for Indonesia

This document is a comprehensive employment contract specifically designed for foreign workers in Indonesia, complying with Indonesian labor law, particularly Law No. 13 of 2003 on Manpower and related foreign worker regulations. It addresses all mandatory employment terms required under Indonesian law while incorporating specific provisions for foreign workers, including work permit requirements, social security participation, and immigration compliance. The contract ensures proper documentation of the employment relationship while protecting both employer and employee interests under Indonesian jurisdiction.

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What is a Employment Contract Foreign Worker?

The Employment Contract Foreign Worker is a legally required document for any foreign national working in Indonesia. It must comply with Indonesian labor law, particularly Law No. 13 of 2003 on Manpower and Minister of Manpower Regulation No. 16 of 2015. This document is essential for obtaining and maintaining work permits (IMTA) and stay permits (KITAS) in Indonesia. It should be drafted in both Indonesian and English languages, with the Indonesian version prevailing in case of disputes. The contract must include specific provisions required for foreign workers, such as fixed-term duration (as permanent contracts are generally not permitted for foreign workers), technology transfer obligations, and compliance with local employment regulations. This document is typically required during the work permit application process and must be registered with the Ministry of Manpower.

What sections should be included in a Employment Contract Foreign Worker?

1. Parties: Identification of the employer (Indonesian entity) and the foreign worker employee, including complete legal names and addresses

2. Background: Context of the employment relationship, including the position to be filled and basis for hiring a foreign worker

3. Definitions: Key terms used throughout the agreement, including Indonesian legal terms and their English translations

4. Position and Duties: Detailed description of the role, responsibilities, and reporting relationships

5. Term of Employment: Duration of employment, including start date and end date (as required for foreign workers in Indonesia)

6. Work Location: Primary workplace location and any requirements for travel or multiple location work

7. Working Hours: Standard working hours, overtime provisions, and rest periods in accordance with Indonesian labor law

8. Compensation and Benefits: Salary, allowances, bonuses, and other benefits including mandatory benefits under Indonesian law

9. Leave Entitlements: Annual leave, sick leave, religious holidays, and other leave entitlements

10. Social Security and Insurance: BPJS participation and other insurance requirements

11. Work Permit and Immigration: Requirements and responsibilities regarding work permits (IMTA) and stay permits (KITAS)

12. Confidentiality: Protection of company confidential information and trade secrets

13. Intellectual Property: Ownership and rights to work product and intellectual property created during employment

14. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after employment

15. Termination: Grounds and procedures for termination in accordance with Indonesian labor law

16. Governing Law: Confirmation of Indonesian law as governing law and dispute resolution procedures

17. Language: Specification of dual language requirements and prevailing language in case of conflicts

What sections are optional to include in a Employment Contract Foreign Worker?

1. Knowledge Transfer: Required when the position involves mandatory training of Indonesian employees

2. Housing Allowance: Include when the employer provides housing or housing allowance

3. Repatriation: Include when the employer provides repatriation benefits

4. Education Allowance: Include when providing education benefits for employee's children

5. Spouse Employment Support: Include when offering assistance for spouse employment

6. Mobilization and Demobilization: Include for positions requiring frequent international travel

7. Local Culture Integration: Include when providing cultural training and support services

What schedules should be included in a Employment Contract Foreign Worker?

1. Schedule 1 - Job Description: Detailed description of roles, responsibilities, and performance expectations

2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits

3. Schedule 3 - Company Policies: Key company policies applicable to the foreign worker

4. Schedule 4 - Required Documents: List of documents required for work permit and stay permit applications

5. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines

6. Appendix B - Training Obligations: Details of any required training programs for Indonesian employees

7. Appendix C - Benefits Summary: Comprehensive summary of all benefits and allowances

Authors

Alex Denne

Advisor @ GenieAI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Publisher

GenieAI

Cost

Free to use

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