Formal job offer and employment contract (for expat)

Vlerkprauw

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Dec 20, 2021
Messages
15
Hi everyone,

I received a job offer from a Jakarta-based company to work with them as an expat, they are willing to arrange the work permit (IMTA) and KITAS for me.

As I understand it, it is normal in Indonesia to first offer a formal job offer that is very short and contains the most important conditions– such as position, salary, starting date, employment duration, and benefits– and after that offer has been agreed upon, to then offer an employment contract with all the conditions.

The formal job offer that I received is very brief (1 page) and I am asked to sign it. After both parties have signed, they will initiate the procedure to arrange the work permit. And then the job offer mentions that the employment contract shall be subject to 'successful receipt of the required permits'. Which I interpret as: only after the work permit has been issued, they will offer me the employment contract.

This puts me in a very bad contract negotiation position, as I'm planning to go back to my home country to get rid of my rental house and store/ship my belongings while the work permit is being processed (this is known to take a long time). At the time I see the contract, I will already have invested so much in this employment that I almost cannot say no. (It doesn't seem like a logical procedure for the company either, unless they are trying to force through some questionable terms and conditions.)

Of course I will first ask them how all of this works and will not sign anything until I completely understand the implications and I agree with them.

But in the meantime I am also very curious to hear from this forum how this job offer and employment contract usually relate in the case of expats, how much time is between them, which terms are typically already in the job offer, etc. For me it's the first time and I'm sure there are many here with direct experience with these matters, either as an expat worker or as an employer.
 

snpark

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Sep 30, 2016
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Well you don't have the job yet so don't do anything until they have approval for your work visa / IMTA

Without that there is no job
So don't resign yet
 

Helpful Herbert

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Mar 24, 2019
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945
If you already have an offer with all the conditions/salary etc., what else is there to negotiate?
 

mas_dam

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Aug 31, 2020
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80
These are standard terms/process for expat hiring.
The company cannot guarantee employment as work permit issuance is a remaining risk that is out of their control.

I suggest to request a copy of the employment contract draft to ensure that all clauses are fair and no surprises/conflict later. It benefits both parties to reduce risks. The company has to pay USD 1,200 DPKK + further fees for the work permit. They surely also don't want you to drop out afterwards because of contract clause issues.
 

snpark

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As I said wait until they get at least the work permit approval which they never even BEFORE applying for the other stuff
Then it's "official". You can liaise with them when you arrive and how / voa / sosbud etc.
But once IMTA approved I believe you have 14/30 days to use it before it expires.

Anyway fact is no imta no job whatever they send or offer
 

Vlerkprauw

Member
Joined
Dec 20, 2021
Messages
15
If you already have an offer with all the conditions/salary etc., what else is there to negotiate?
I have a job offer which only mentions salary and a few conditions, but leaves out a lot of essential things, for example contract duration, hours worked per week, overtime compensation,...

Well you don't have the job yet so don't do anything until they have approval for your work visa / IMTA
Indeed this is probably wise– shouldn't let go of my job or house yet before the IMTA is issued. This means I will have to negotiate with them to not start working immediately upon IMTA issuance, but to first have some time to take care of things at home. If I need to 'use' the IMTA within 14/30 days as you say, that means time will be short...

I suggest to request a copy of the employment contract draft to ensure that all clauses are fair and no surprises/conflict later. It benefits both parties to reduce risks.
Thank you for the advice, I will do that!
 

mas_dam

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Aug 31, 2020
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80
I will have to negotiate with them to not start working immediately upon IMTA issuance, but to first have some time to take care of things at home. If I need to 'use' the IMTA within 14/30 days as you say, that means time will be short...

You have some buffer days....

  • OSS recommendation
  • RPTKA/Rencana Penggunaan Tenaga Kerja Asing / Expat Placing Plan
    The biggest hurdle for most companies
  • Then it goes into your docs, requirements met? etc.
    Leading to DPKK Billing and Payments
  • Then "Pengesahan Rencana Penggunaan Tenaga Kerja Asing", referred to under its previous names "IMTA"/"Notifikasi", or "Work Permit".

  • Then it goes to immigration for Residence Permit/Entrance Visa (VITAS).
"If I need to 'use' the IMTA within 14/30 days as you say, that means time will be short..."

Before ITAS is done you cannot enter or work.
There is no such urgency to start or enter after work permit issuance. Work Permit validity follows KITAS validity. And KITAS validity is counted from your entrance date on VITAS..

Personally, I would consider the process 95% safe to be completed smoothly the moment DPKK billing code is issued.
 

Vlerkprauw

Member
Joined
Dec 20, 2021
Messages
15
The company has clarified that I will receive a full contract soon after I sign the job offer, not after the work permit has been issued. In fact, they said the signed employment contract is one of the documents that needs to be supplied for the work permit application; the validity of the employment contract will be subject to the issuance of the work permit.

They also provided me with a timeline for the work permit process, with the necessary caveats of course. They are OK with me taking a bit longer to wrap things up at 'home' following the work permit issuance.

Thanks for your replies. Even though my question was not very specific, your replies did help to bring some order into the chaos!
 

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