Fixed Term Employment Agreement According To Law No.…
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Fixed Term Employment Agreement According To Law No. 11 Of 2020 Regarding Job Creation

Fixed-Term (temporary) Employment Agreement must be made in writing and must be written in the Indonesian language with Latin alphabets. The signed Fixed-Term (temporary) Employment agreement must also be registered online to the government agency responsible for manpower affairs within 3 (three) days since the signing of the agreement. 

Fixed-Term (temporary) Employment Agreement can only be made for a certain work, which are determined by the period of time, as follows: 

  1. Estimated time to be completed is not too long and no longer than 5 years; 

  2. Seasonal work; or 

  3. Work that is related to a new product, a new activity or an additional product that is still in the experimental stage or try-out phase. 

Fixed-Term (temporary) Employment Agreement can also be made based on the completion of certain work, with the following indications:

  1. A one-time job; or

  2. A temporary job.

If either party in a Fixed-Term Employment Agreement terminates the employment relations prior to the expiration of such agreement, or if their employment agreement has to be ended for reasons other than what is given above, the party that terminates the relation is obliged to pay compensation to the other party in the amount of the worker's wages until the expiration of the agreement.

Employment Agreement does not end because the employer dies or because the ownership of the company has been transferred because the company has been sold, bequeathed to an heir, or awarded as a grant. In the event of a transfer of ownership of an enterprise, the new employer shall bear the responsibility of fulfilling the entitlements of the worker unless otherwise stated in the transfer agreement, which must not reduce the entitlements of the worker.

Suria Nataadmadja & Associates Law Firm

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