Employees are on a fixed-term contract if both of the following apply: they have an employment contract with the organisation they work for. their contract ends on a particular date, or on completion of a specific task, eg a project.
Duration and renewal: Fixed-term contracts can be established for a maximum duration of up to two years. Importantly, these contracts can be renewed, but the total duration, including renewals, cannot exceed the two-year limit. Specific purposes: Generally, fixed-term contracts are used for temporary activities.
The two contract types are: Indefinite term, which is the most common type of contract. It doesn't have an end date and entitles the employees to all the rights guaranteed by the employment law in Brazil. Definite term which includes a standard contract, an experience contract, and an apprenticeship contract.
A fixed term employee, compensated under the legal threshold, employed for longer than 3 months (without a justifiable reason) will be deemed to be a permanent employee and may not be treated less favourable than permanent employees doing the same or similar work.
Project-based contract agreements are made between businesses and independent contractors. Project-based workers usually have a limited time frame for their work with a company. They are not referred to as employees, who typically don't have an end-date for their position.
Tips for Creating an Effective Project Contract Clearly and distinctly define the scope of performance and the distribution of tasks to avoid misunderstandings and disputes. Set realistic deadlines and milestones to monitor the progress of the project and ensure that all parties stay informed.
The Indonesian government sets minimum wage levels, which vary by region and sector. Employers must ensure that their wage structures comply with these regulations. In addition to wages, employees are entitled to various benefits, including annual leave, maternity leave, sick leave, and religious holiday allowances.
The statistic shows the distribution of employment in Indonesia by economic sector from 2012 to 2022. In 2022, 29.28 percent of the employees in Indonesia were active in the agricultural sector, 21.87 percent in industry and 48.85 percent in the service sector.
Generally, an employment contract in Indonesia can either be a fixed-term (definite) or an indefinite-term (permanent) contract. Fixed-term employment agreements are subject to stricter requirements compared to indefinite-term employment agreements.