RecruitGo

PKWTT

PKWTT stands for Perjanjian Kerja Waktu Tidak Tertentu, an Indonesian term for an indefinite employment agreement. In this type of agreement, the duration of employment is not specified and continues until either the employer or the employee terminates the contract. It is the most common type of emp

April 24, 2024
Updated March 5, 2026
2 min read
Glossary

PKWTT stands for Perjanjian Kerja Waktu Tidak Tertentu, an Indonesian term for an indefinite employment agreement. In this type of agreement, the duration of employment is not specified and continues until either the employer or the employee terminates the contract. It is the most common type of employment agreement in Indonesia.

Key Requirements for Indefinite Employment Contracts in Indonesia

  1. Offer and Acceptance: The employer must make a clear offer of indefinite employment, and the employee must accept the offer under the terms and conditions provided.
  2. Job Description and Responsibilities: The contract should clearly outline the employee’s job description, responsibilities, and expected contributions to the company.
  3. Compensation and Benefits: The contract should specify the employee’s salary, benefits, bonuses, and any other compensation-related details.
  4. Termination Procedures: The procedures and grounds for the employer and employee termination should be included. This may include a notice period, severance, and any specific conditions related to termination.
  5. Working Hours and Leave Entitlement: According to Indonesian labor laws, the contract should clearly define the standard working hours, rest days, and annual leave entitlements.
  6. Legal Compliance: Ensure that the contract complies with Indonesian labor laws and regulations regarding employment contracts.
  7. Miscellaneous Provisions: The contract should clearly outline any additional provisions specific to the company or the nature of employment.

As per Indonesian laws, the contract must be in Indonesian language. A parallel translation in English is often provided if the employer is a foreign company.

You can generate an Indefinite Employment Contract here.

Share this term

Back to Glossary
Employer of Record

From $49/mo

per employee, all-inclusive

  • Hire in 40+ countries
  • Full compliance & payroll
  • No entity setup needed
Get a Quote

Related Terms

Paid Holidays

Paid holidays are specific, designated days off from work for which employees receive their regular pay, even though they are not required to perform work duties on those days. The paid holiday meaning emphasizes that these are typically public, national, or company-recognized holidays that grant em

3 minRead

Outside Services Expenses

“Outside services expenses,” often simply referred to as outsourcing expenses or professional fees, are the costs a business incurs when it pays external vendors, freelancers, or service providers to perform tasks or functions that are not carried out by its own internal employees. These

3 minRead

Labor Laws

Labor laws (or labour laws) are a comprehensive body of rules and regulations that govern the relationship between employers, employees, and often, trade unions. These laws are designed to mediate the inherent power imbalance between workers and employers by establishing minimum standards for workin

2 minRead

Interpersonal Skills

Interpersonal skills, often called “people skills” or “soft skills,” are the abilities you use to communicate and interact with others. They go beyond technical knowledge and are essential for building relationships, working in teams, and navigating social situations in both

2 minRead

In-kind Benefits

In-kind benefits, also commonly known as fringe benefits or benefits-in-kind (BIKs), are non-monetary forms of compensation provided by an employer to an employee. Instead of direct cash payments, these benefits come in the form of goods, services, or privileges. They are part of an employee’s

4 minRead

Conditions of Employment

refers to the specific terms and requirements that an employee must meet and adhere to as part of their job.

3 minRead
View all terms
Simplify global employment

Ready to hire globally without setting up a local entity?

RecruitGo makes it easy to hire, pay, and manage employees in 40+ countries. Let us handle compliance so you can focus on building your team.

Book a DemoExplore EOR Solutions