FTCs (ie, those for definite-term employees) must be made in writing and registered with the local Manpower office within:
Indefinite-term employment agreements may be made either orally or in writing. Both must contain certain required provisions.
Any employment relationship that includes a probationary period must be documented in writing, and the probationary period cannot be longer than a single period of 3 months. A FTC cannot contain a probationary period; otherwise, the probationary period will be null and void.
No mandatory policies, but the following clauses and policies are recommended: gifts and favor policies for compliance with anti-bribery rules; policies on conflicts of interest with external parties; policies on electronic communications, email and internet abuse and software copyright; policies on code of conduct; policies on data privacy and changes in personal data; clauses in contemplation of natural disaster; clauses related to political activities; clauses related to rotation and relocation (mutasi); clauses related to demotion; clauses related to suspension without termination; and clauses related to personal leave.
Subject to the Employment Contracts section, there is generally no requirement to lodge employment contracts or policies with, or receive approval from, any third party. However, company regulations, similar to an employee handbook, and collective labor agreements (if there is a labor union) are filed with and approved by the authorities. Company regulations are valid once they are approved by the authorities, while collective labor agreements come into force based on the date agreed by an employer and labor union(s) as stated in the agreement or when the date it is signed.
Last modified 13 Jun 2024
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