DESKRIPSI MATERI

PERTEMUAN 7 :
DEFINITE AND INDEFINITE TERM EMPLOYMENT AGREEMENT

ENGLISH FOR SPECIFIC PURPOSES

MATA KULIAH : BAHASA INGGRIS 4

A. INTRODUCTION

In this meeting we are discussing about Definite and Indefinite Term Employment Agreement.
The learning process is about translating the material discussing about Definite and Indefinite Term
Employment Agreement. In this lesson the students are expected to be able to know and understand the
sentences and vocabularies. The article discussing the Definite and Indefinite Term Employment
Agreement will be given in this meeting. This material will also make the students think requirements of
Definite and Indefinite Term Employment Agreement and the students must also be able to draft such
Definite and Indefinite Term Employment Agreement.

B. OBJECTIVE OF THE LECTURE

The objectives of the learning process are expected to make the students understand the text, and
meaning the article about Definite and Indefinite Term Employment Agreement by translating the
passage in group. The students understand some vocabularies concerning the law especially on Definite
and Indefinite Term Employment Agreement and apply the words into the form of a sentence. The
students will be guided to make a draft that relate to the text of the Definite and Indefinite Term
Employment Agreement and the students will also be able to give some comments and opinion about the
Definite and Indefinite Term Employment Agreement, know the requirements as well as structure of the
Definite and Indefinite Term Employment Agreement.
C. MATERIAL DESCRIPTION

SEVENTH MEETING

DEFINITE AND INDEFINITE TERM EMPLOYMENT AGREEMENT

A. Definite Term Employment Agreement

Under Article 59 Law Number 13 of 2003 on Employment (“Employment Law”), fixed-term

employment contract is an employment agreement for definite period of time, or the completion
of work is for certain period (“PKWT”). PKWT is for a temporary job, seasonal job and work
related to new activities at the probation stage.

PKWT may be undertaken for a period of maximum 2 (two) years and may only be extended
once for 1 (one) year. PKWT may also be renewed for a period of no longer than 2 (two) years.
In that case, the renewal of PKWT can only be made after the lapse of 30 (thirty) days grace
period.

Under Article 62 of Employment Law, if (a) either party in PKWT terminates the employment
relation before PKWT’s expiry date, or (b) if the PKWT ends for reasons other than (i) decease
of worker, (ii) PKWT’s expiry, (iii) a court decision or resolution or order of the industrial
relation dispute settlement institution which has permanent legal force, such as natural disaster,
riot and disturbance to the security, and/or (iv) certain situation prescribed in the PKWT or the
company regulation, the terminating party is obligated to give compensation for the remaining
contract’s amount to the other party.

Minister of Manpower and Transmigration Decree No. Kep100/Men/VI/2004 on the

Implementation of Employment Agreement For Definite Period (“MOMTD No.100/2004”), the
PKWT can only be used for the definite term work as follows:

a. one-time work or temporary work, the work which is completed within 3 (three) years. This
PKWT is based on the accomplishment of a certain job. If the job can be completed faster, the
PKWT is automatically terminated;
b. seasonal job, a job for 1 (one) type of work and particular season, according to Article 7 of
the MOMTD No.100/2004. The PKWT for this type of job cannot be renewed.
c. job related to a new product, a job that can be conducted with the worker to carry out the job
related to (i) new products, (ii) new activities, or (iii) additional products that are still tested or
tried. The PKWT for this work can only be conducted for the maximum period of 2 (two) years
and can be extended once for 1 (one) year. The PKWT for this type of work cannot be renewed.
d. daily freelance job, in which the type of work with the time and volume are irregular and the
wage is based on the attendance or daily or freelance agreement. This work can be performed on
the condition that the employee/worker works less than 21 (twenty one) days in one month. After
the lapse of 21 (twenty one) days, then the PKWT is automatically converted to indefinite
employment agreement.

B. Indefinite Term Employment Agreement

Under Article 56 of Law Number 13 of 2003 on Employment (“Law No.13/2003”), there are
two types of employment agreements, namely the employment agreement for definite term
employment agreement and indefinite term employment agreement (“PKWTT”).
Employment Relation

Article 51 of Law No.13/2003 regulates that employment agreement can be made orally or in
writing. If it is made orally, the employer is obliged to issue a letter of appointment for the
worker. The mentioned letter of appointment letter shall at least contain information on (i) the
name and address of the worker, (ii) the date the worker starts to work, (iii) the type of job that
the worker is supposed to do and (iv) the amount of wages that the worker is entitled to.

Under Article 54 paragraph (1) of Law No.13/2003, a written employment agreement shall at
least contain:
1. the name, company address and type of business;
2. the name, sex, age and address of the worker;
3. the position or the type of job;
4. the place where the job is carried out;
5. the amount of wages and the mechanism of payment;
6. job requirements which contains the right and obligation of enterpreneur and worker;
7. the effective date and the period of employment agreement;
 8. the place and date where the employment agreement is made; and
9. the signatures of the parties under the employment agreement.

Article 60 of Law No. 13/2013 regulates that the employment agreement for an indefinite term
may require a probation period. This period can be no longer than 3 (three) months and during
this probation period it is prohibited to pay wages less than the applicable minimum wage.

Termination of Employment (“Termination”)

Under Article 151of Law No.13/2003, the employer and the employee must make all efforts to
prevent Termination of the employment agreement. If, despite all efforts, negotiation fails to
result in any agreement, the employer may only terminate the agreement after receiving a
decision from the institute for the settlement of industrial relation disputes (“ISRID”).

Under Article 154 of Law No.13/2003, the decision of ISRID is not required if:

1. the employee is still on probation period and the Termination has been stipulated in writing;
2. the mentioned employee makes an application for resignation in writing on his/her own will
with no indication of being pressured or intimidated by the employer to do so or the
employment relationship is expired;
3. employee who has reached the retirement age as stipulated under employment agreement,
company’s regulation, collective work agreements and laws and regulations;
4. employee dies.

Under Article 155 of Law No.13/2003, any Termination mentioned above conducted without the
decision of ISRID is considered null and void. Then, both employer and the employee shall
conduct their obligations until issuance of ISRID’s decision.

If all efforts have been made and the Termination is inevitable, the employer is obliged to pay
the severance pay and/or employment reward pay and unusable compensation pay.

In the event that the employee that cannot accept the Termination as set forth in Article 158
paragraph (1), Article 160 paragraph (3) and Article 162 of Law No.13/2003, then under Article
171 Law No.13/2003, that employee may file a claim to the Industrial Relation Court at the latest
1 (one) year from the Termination date.
The above mentioned provision is also stipulated in Article 82 Law Number 2 of 2004 on
Industrial Relation Dispute Settlement, which states that the claim from the employee as set out
in Article 159 and Article 171 Law No.13/2003 may only be filed in the period of 1 (one) year
from the receipt or notification of Termination decision by the entrepreneur.

Under the Constitutional Court Decision No. 012/PUU-I/2003, Article 158 and Article 159 Law
No.13/2003 have been declared to not have a binding legal force.

CONTRACT OF EMPLOYMENT
Entered into between:

…………………………………………………………….
(herein after referred to as "the employer")

Address of employer:
…………………………………………………………….
…………………………………………………………….
…………………………………………………………….
…………………………………………………………….

and

…………………………………………………………….
(herein after referred to as "the employee")

1. Commencement

This contract will begin on ……………… and continue until terminated as set out in clause 4.

2. Place of work

…………………………………………………………….

3. Job description

Job Title ……………………………………………….

(e.g.. Domestic worker, child minder, gardener, etc)
Duties ..…………………………………………
…………………………………………………………….
…………………………………………………………….
…………………………………………………………….

4. Termination of employment (See Guidelines 2 and 3)

Either party can terminate this agreement with four weeks written notice. In the
case where an employee is illiterate notice may be given by that employee
verbally.

5. Wage (See Guidelines 4 and 5)

5.1 The employees wage shall be paid in cash on the R………….

last working day of every week/month and shall
be:

5.2 The employee shall be entitled to the following

allowances/payment in kind:

5.2.1 A weekly/monthly transport allowance of R………….

5.2.2 Meals per week/month to the value of R………….

5.2.3 Accommodation per week/month to the value of R………….

5.3 The total value of the above remuneration shall be R………….

 (The total of clauses 5.1 to 5.2.3)
(Modify or delete clauses 5.2.1 to 5.2.3 as
needed)

5.4 The employer shall review the employee’s salary/wage once a year.

6. Hours of work (See Guideline 6)

6.1 Normal working hours will be from ………… a.m. to …………. p.m. on
Mondays to Fridays and from ……………a.m. to ………..p.m. on Saturdays.

6.2 Overtime will only be worked if agreed upon between the parties from time to
time.

6.3 The employee will be paid for overtime at the rate of one and a half times
his/her total wage as set out in clause 5.3.

7. Meal Intervals (See Guideline 7)

The employee agrees to a lunch break of one hour/30 minutes (delete the one that
is that not applicable). Lunchtime will be taken from ………… to ……………
daily.

8. Sunday work (See Guideline 8)

Any work on Sundays will be by agreement between the parties from time to
time.

If the employee works on a Sunday he/she shall be paid double the wage for each
hour worked.

9. Public Holidays (See Guideline 9)

The employee will be entitled to all official public holidays on full pay.

If an employee does not work on a public holiday, he/she shall receive normal
payment for that day.

If the employee works on a public holiday he/she shall be paid double.

10. Annual Leave (See Guideline 10)

10.1 The employee is entitled to……….. days paid leave after every 12 months of
continuous service. Such leave is to be taken at times convenient to the employer
 and the employer may require the employee to take his/her leave at such times as
coincide with that of the employer.

11. Sick leave (See Guideline 11)

11.1 During every sick leave cycle of 36 months the employee will be entitled to
an amount of paid sick leave equal to the number of days the employee would
normally work during a period of six weeks.

11.2 During the first six months of employment the employee will entitled to one
day’s paid sick leave for every 26 days worked.

11.3 The employee is to notify the employer as soon as possible in case of his/her
absence from work through illness.

12. Maternity leave (See Guideline 12)

(Tick the applicable clauses in the space provided).

12.1 The employee will be entitled to …………. days maternity leave without pay; or

12.2 The employee will be entitled to ………… days maternity leave on ………… pay

13. Family responsibility leave (See Guideline 13)

The employee will be entitled to three days family responsibility leave during
each leave cycle.

14. Deductions from remuneration (See Guideline 14)

The employer may not deduct any monies from the employee’s wage unless the
employee has agreed to this in writing on each occasion.

15. Accommodation
(Tick the applicable boxes).

15.1 The employee will be provided with accommodation for as long as the employee is in
the service of the employer, and which shall form part of his/her remuneration
package
15.2 The accommodation may only be occupied by the worker, unless prior arrangement
with the employer.

15.3 Prior permission should be obtained for visitors who wish to stay the night. However
where members of the employees direct family are visiting, such permission will not
be necessary.

16. Clothing (Delete this clause if not applicable)

………… sets of uniforms will be supplied to the employee by the employer and
will remain the property of the employer.

17. Other conditions of employment or benefits

…………………………………………………………….
…………………………………………………………….
…………………………………………………………….
…………………………………………………………….
…………………………………………………………….

18. General

Any changes to this agreement will only be valid if they are in writing and have
been agreed and signed by both parties.

THUS DONE AND SIGNED AT ………………….. ON THIS ………… DAY OF

…………………………. 199...

…………………………………………………………….

EMPLOYER EMPLOYEE

Witnesses:

…………………………………………………………….

…………………………………………………………….
Assignment and Exercise
1. In group of four students, please translate the passage into Indonesian!
2. Discuss any words, phrases or sentences that are incomprehensible!
3. Please collect the vocabularies (legal terms) in connection with the above passage!
4. Discuss the different between Definite and Indefinite Term Employment Agreement!
5. Please find out other example of Employment Agreement and compare their type and structure
with your friend collection!

References :

Abdul Khakim. (2003). Pengantar Hukum Ketenagakerjaan Indonesia Berdasarkan Undang-

undang Nomor 13 Tahun 2003. Bandung: PT. Citra Aditya Bakti.
Asri Wijayanti. (2009). Hukum Ketenagakerjaan Pasca Reformasi. Jakarta: Sinar Grafika.
Atiyah, P.S., An Introduction to the Law of Contract, Clarendon Press, Oxford,. 1995
Azar, Betty Schrampfer, Understanding and Using English Grammar. Third. Edition. New York:
Longman. 2002
Budiono, Herlien, Ajaran Umum Hukum Perjanjian dan Penerapannya di Bidang
Kenotariatan, Bandung, Citra Aditya Bakti, 2009.
Echols, John M. dan Hassan Shadily.. Kamus Inggris Indonesia : An English. – Indonesian Dictionary.
Jakarta: 2005, PT Gramedia.
Subekti (R.), Tjitrosudibio (Raden.), Kitab Undang-Undang Hukum Perdata (Indonesian Civil
Code), Jakarta 1961, Pradnja Paramita