Discover the key elements and templates for crafting comprehensive employment contracts in Indonesia. Gain insights into essential inclusions in employment agreements and explore template options for different contract types. Ensure clarity, compliance, and a strong employer-employee relationship. Simplify the contract creation process and access a diverse talent pool in Indonesia through a global workforce sourcing platform.
Table of Contents
Employment Agreement
An employment agreement in Indonesia can be categorised into a fixed-term employment contract (temporary employment contract) or an indefinite-term employment contract (permanent employment contract).
- An indefinite-term employment agreement may provide for a probation period of up to three months. In the event an indefinite-term employment agreement is made verbally, the employer is required to provide a letter of appointment to the employee.
The letter shall contain at least the following information:
(i) the employee’s name and address,
(ii) the date the work commences,
(iii) the type of work, and
(iv) the employee’s proposed wages.
- Fixed-term employment agreements are subject to more strict requirements than indefinite-term employment agreements. A fixed-term employment agreement must be in writing and in the Indonesian language. The parties typically provide the English version of a bilingual agreement. A fixed-term employment agreement cannot include a probation period. A fixed-term employment agreement that is based on a certain period of time (unlike seasonal contracts, etc.) may last for up to two years, and may be fixed-term “extended” once for a maximum period of one year. Then, after a grace period of at least 30 days, it can be “renewed” one time for a maximum period of two years.
What is necessary for Employment Contracts?
- Both employee’s and employer’s names
- Job title and job description
- Date of job commencement
- Pay rate and pay date
- Overtime pay
- Working hours
- Holiday and annual leave entitlement
- Location of work (especially when a company has more than one location or site)
- Sick pay
- Period of notice in the event of resignation
Indefinite-term employment contract templates (Permanent employment contract)
TEMPLATE 1: Indefinite-term employment contract

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TEMPLATE 2: Indefinite-term employment contract


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TEMPLATE 3: Indefinite-term employment contract


Template of fixed-term employment contract (temporary employment contract)
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Fixed-term employment contract template


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In conclusion, an employment contract in Indonesia is vital for both employers and employees. Including essential information such as job details, duration, and compensation ensures clarity and prevents disputes. Templates for indefinite-term and fixed-term contracts provide a helpful starting point. A well-structured contract promotes a harmonious work relationship and protects the rights of both parties. Utilizing a global workforce sourcing platform streamlines talent acquisition and drives success in Indonesia’s diverse labor market.
The views expressed in this article are the author’s own and do not reflect Talent’d’s views, opinions or policies.
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