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
- 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.
- Job Description and Responsibilities: The contract should clearly outline the employee’s job description, responsibilities, and expected contributions to the company.
- Compensation and Benefits: The contract should specify the employee’s salary, benefits, bonuses, and any other compensation-related details.
- 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.
- 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.
- Legal Compliance: Ensure that the contract complies with Indonesian labor laws and regulations regarding employment contracts.
- 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.
