EMPLOYMENT CONTRACT

No. ……………….

This Employment Contract (hereinafter referred to as the “Contract”) is made and executed in
………… on this day, ……………… by and between:

1. Name :
Position :
Address :

In this matter acting for and behalf of ............................................... mentioned above,

hereinafter referred to as FIRST PARTY.

2. Name :
Place/Date of Birth :
Address :

Hereinafter referred to as SECOND PARTY

ARTICLE 1
APPOINTMENT

1. FIRST PARTY declares to accept SECOND PARTY as employee for a certain period
of time, with position as a ………………………

2. Work description relating to said position shall be described in the attachment

constituting inseparable part of this Contract, without reducing SECOND PARTY’s
obligation to dedicate all his capability and to carry out other duties directed by his
superior.
 ARTICLE 2
SALARY AND BENEFIT

SECOND PARTY shall receive salary and benefit from FIRST PARTY as follows:

a. Starting Basic Salary: ……………………….

(…………………………………………………………...)
To be paid at end of the month.
Increment or changing salary is under First Party authority and agreed between both
party.

b. Benefit :

1) House rent Allowance for residence, of ……………………... To be paid at

…………………onward. The changing of the house rent amount for next coming years
is under authority First Party.

2) THR Allowance of one time monthly salary, to be paid 7 (seven) days prior to Idul Fitri
Day at the latest.

3) Covered in the Jamsostek program, including pension fund and work accident insurance
given pursuant to the prevailing provisions. Covered health insurance under company
health insurance program.

4) Company Car to be used for travel to and from work and during working time on
EMPLOYER’S business purpose .The regulation of Company Car Usage shall be
described in the attachment constituting inseparable part of this Contract.

Income Tax (PPh 21) on all cash/transferred incomes received by SECOND PARTY shall be
paid by SECOND PARTY and shall be collected pursuant to the prevailing laws and
regulations.

ARTICLE 3
DAY AND WORKING HOURS

1. SECOND PARTY’s days and working hours shall be determined pursuant to the
prevailing Regulations of the Company, namely:

 Monday to Thursday: 07.30-16.30 WIB

Lunch break : 12.00-13.00 WIB
 Friday : 07.30-16.45 WIB
Lunch break : 11.45-13.00 WIB
2. FIRST PARTY may change time of work at any time according to the need, provided
that it shall not be contrary to the prevailing regulations.

3. SECOND PARTY shall be required to take overtime work whenever necessary in

order to complete his duties and obligations, without obligation of FIRST PARTY to pay
overtime wage.

ARTICLE 4
ANNUAL LEAVE

1. SECOND PARTY shall have right to take annual leave of 17 (seventeen) days for
each 12 (twelve) months of work period, including the company holidays determined by
FIRST PARTY which shall be calculated as annual leave.

2. The mechanism and rules of annual leave and absence, such as sickness, special leave,
leaving work place, etc., shall be subject to the mechanism and rules of FIRST PARTY.

ARTICLE 5
SECOND PARTY’S OBLIGATION

1. SECOND PARTY shall be subject to and shall comply with the prevailing Rules and
Regulations of the Company, among others but not limited to the following matters:

a. To fully work according to the time of work, and to complete duties being his
obligation in a good manner and with full responsibility.

b. To be prepared to work outside the company’s location at any time, including to

work outside of the town.

c. Not to work and/or carry out work at the same time in other places, with or without
payment, except upon written consent of FIRST PARTY.

2. SECOND PARTY, at the time this Contract expires, shall be obliged to deliver and/ or
return all documents, inventories, information and other goods owned by the company
controlled or known by him to FIRST PARTY based on a minutes of transfer signed by
both parties.

3. Violation against other rules or provisions prevailing in the company shall be subject to a
sanction pursuant to the prevailing provisions, without reducing FIRST PARTY’s right to
unilaterally terminate this Contract at any time.
 ARTICLE 6
COMPANY’S SECRECY

1. SECOND PARTY, during or after working for FIRST PARTY, shall be obliged to
protect the Company Secrecy, including not to disclose, transfer, inform etc., directly or
indirectly, to any persons whomsoever concerning all information owned by him and or
used by the Company, including those relating to the process of production, the
company’s management, agreement and financial documents, design, catalogue, etc.

2. Violation against the provision on the Company’s Secrecy shall give rights to FIRST
PARTY to terminate this Contract at any time, without any compensations whatsever and
without reducing FIRST PARTY’s right to take legal action including to claim the
payment of compensation of at least equals the gross salary received by SECOND
PARTY for 1 (one) year.

ARTICLE 7
TERM OF CONTRACT

1. This Contract shall be valid for a period of 24 (twenty four) months, commencing
from ……………… and therefore, it shall expire on ……………………………...

2. This Contract can be extended based on mutual agreement made in writing by the
PARTIES.

3. If the term of Contract expires and the PARTIES do not extend the contract, then the
PARTIES, commencing from the date of expiration, shall automatically no longer have
work relationship, rights and obligations, except for the fulfilment of reasonable delayed,
obligations which must be carried out/settled by the PARTIES.
 ARTICLE 8
TERMINATION OF CONTRACT
PRIOR OF THE AGREED PERIOD

1. Each party may terminate this Contract prior to the agreed period, on the condition
that it shall be priory notified in writing to the other party within at least 2 (two) months
prior to the intended date of termination.

2. The termination of this Contract referred to in article 1 above shall not require either
party to pay compensations whatsoever to the other party.

ARTICLE 9
UNILATERAL TERMINATION OF
CONTRACT

1. Deviating from the provision of Article 8 paragraph 1 above, FIRST PARTY shall be
entitled to unilaterally terminate this Contract at any time without prior consent of or
notice to SECOND PARTY, in the event that SECOND PARTY proves to violate this
Contract or to commit other violation, including any serious mistake as provided in the
Company’s Regulations and/or prevailing legislation.

2. The termination of this Contract, due to the reason provided in paragraph 1 above shall not
require FIRST PARTY to pay severance compensation or payment in any other forms
whatsever to SECOND PARTY

ARTICLE 10
DISPUTE SETLEMENT

In the event that controversy, dispute or other conflict occurs relating to the implementation
of this Contract, the PARTIES mutually agree to give priority to the settlement with
deliberation to reach mutual agreement.
 ARTICLE 11
CLOSING PROVISION

In the event that there are matters which are not or have not been sufficiently arranged in this
Contract, they shall be arranged in a supplement to the agreement in the form of Addendum
constituting an inseparable part of this Contract.

This Contract is made in 2 (two) duly stamped copies of the same legal power.

For and on behalf of:

EMPLOYER

Name :

Title :

Date :

Place :

Sinature :

EMPLOYEE

Name :

Title :

Date :

Place :

Sinature :