Understanding Fixed-Term and Indefinite-Term Employment Agreements in Indonesia
In Indonesian employment practice, the employment relationship between an employee and an employer always begins with an employment agreement. This agreement serves as the legal basis for determining the rights and obligations of the parties, and provides certainty regarding the employee’s employment status. In general, Indonesian employment law recognizes two main types of employment agreements, i.e., Fixed-Term Employment Agreements (Perjanjian Kerja Waktu Tertentu, “PKWT”) and Indefinite-Term Employment Agreements (Perjanjian Kerja Waktu Tidak Tertentu, “PKWTT”). Each type carries distinct characteristics, functions, and…