The Project Based Employment Contract is a specialized employment agreement used in Indonesia when hiring employees for specific, time-bound projects. This contract type is regulated under Indonesian Labor Law No. 13 of 2003 and Government Regulation No. 35 of 2021, which set strict requirements for fixed-term employment agreements (PKWT). The document is essential for businesses undertaking project-based work where employment is needed for a defined period or specific project completion. It provides legal protection for both employers and employees by clearly defining project scope, duration, responsibilities, and compensation while ensuring compliance with Indonesian labor regulations regarding fixed-term employment, including maximum duration limits and renewal restrictions.
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1. Parties: Identification of the employer and employee, including their legal details and addresses
2. Background: Context of the employment relationship and brief description of the project
3. Definitions: Key terms used throughout the agreement
4. Project Scope and Duration: Detailed description of the project, its objectives, and expected timeline with clear start and end dates
5. Position and Duties: Employee's role, responsibilities, and reporting relationships
6. Work Location: Primary workplace location and any requirements for travel or remote work
7. Working Hours: Standard working hours, overtime provisions, and rest periods in accordance with Indonesian labor law
8. Compensation and Benefits: Salary, payment schedule, and any additional benefits including mandatory social security (BPJS)
9. Leave Entitlements: Annual leave, sick leave, and other types of leave as per Indonesian regulations
10. Confidentiality: Protection of company's confidential information and trade secrets
11. Intellectual Property: Ownership and rights to work product created during employment
12. Performance Standards: Expected performance levels and evaluation criteria
13. Early Termination: Conditions and procedures for contract termination before project completion
14. Dispute Resolution: Process for resolving any employment-related disputes
15. Governing Law: Specification of Indonesian law as governing law and relevant jurisdiction
1. Non-Competition: Restrictions on working with competitors, used when employee has access to sensitive information
2. Mobility Clause: Terms for potential temporary or permanent relocation, used when project may require geographical flexibility
3. Equipment and Resources: Details of company-provided tools and resources, used when specific equipment is provided
4. Training Requirements: Specific training obligations and commitments, used when project requires special training
5. Performance Bonuses: Project completion or performance-based incentives, used when additional incentives are offered
6. Remote Working Provisions: Detailed terms for remote work arrangements, used when remote work is permitted
7. Foreign Worker Provisions: Additional terms for expatriate employees, used when employing non-Indonesian workers
1. Schedule 1 - Project Details: Detailed project specifications, milestones, and deliverables
2. Schedule 2 - Compensation Structure: Detailed breakdown of salary, allowances, and benefits
3. Schedule 3 - Job Description: Comprehensive description of roles, responsibilities, and key performance indicators
4. Schedule 4 - Company Policies: Relevant company policies and procedures applicable to the employee
5. Schedule 5 - Required Certifications: List of required professional certifications or qualifications for the role
6. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines
7. Appendix B - Health and Safety Guidelines: Workplace health and safety protocols specific to the project
Authors
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