Villa staff contracts: which one, and what it commits you to

Most villa staff problems start with the wrong contract — a permanent housekeeper on a string of fixed-term contracts, or a “daily” gardener who has worked every day for a year. PP No. 35 Tahun 2021 decides what each arrangement actually is.

Eight words on a staff contract

These are the terms an owner, or the manager hiring on the owner's behalf, will meet.

Which contract villa work belongs on

PP No. 35 Tahun 2021, established on 2 February 2021, sets the rules for fixed-term and daily work. This page reads the regulation in force.

Fixed-term is for work that ends

A fixed-term contract is based on a period or on completing a particular job, and it cannot be used for work that is permanent in nature (Pasal 4 ayat (2)). It fits work expected to finish soon, seasonal work, or work on something new (Pasal 5), and a period-based one may not exceed 5 years with extensions (Pasal 8).

Permanent villa work

A villa let all year needs cleaning, gardens and a pool looked after all year. That is work that continues, which is what the indefinite contract (PKWTT) is for. A renovation crew or extra help for a single peak season is the kind of work a fixed-term contract fits.

The daily worker who became permanent

A daily contract is for work of fewer than 21 days a month, must be in writing, and still carries social security rights (Pasal 10 and 11). A worker who works 21 days or more for three consecutive months or longer is by law on an indefinite contract (Pasal 10 ayat (4)) — whatever the paperwork says.

What a fixed-term contract commits you to

No probation

A fixed-term contract may not require a probation period. If it does, the probation is void by law and the time still counts as service (Pasal 12).

What it must say

At least: the business and its address, the worker, the job, the place of work, the wage and how it is paid, the rights and obligations of both sides, the start and the term, and the place, date and signatures (Pasal 13).

Registration

The employer registers the contract online with the manpower ministry within 3 working days of signing, or in writing with the regency office within seven if the online system is unavailable (Pasal 14).

Compensation at the end

A worker with at least a month's continuous service gets compensation money when the contract ends: one month's wage per 12 months, pro rata for other lengths (Pasal 15 and 16), and pro rata again if either side ends it early (Pasal 17).

For micro and small businesses the amount is by agreement (Pasal 16 ayat (6)).

Vetting, confidentiality and the contract

The question owners actually ask — how to check staff and keep guest matters private — is answered in the contract, not in a separate regulation.

What the contract can carry

The rights and obligations of both sides are among what a fixed-term contract must contain (Pasal 13), and a confidentiality obligation is a term like any other. No regulation read for this page sets a specific form for a staff non-disclosure agreement.

Who is the employer

If the management company hires, the company is the employer and the contract is its obligation; if the owner hires, the owner is. The management contract should say which, because the compensation, the registration and the social insurance follow the employer. The contract clauses.

What this page does not cover

• Termination of indefinite contracts and severance. The manpower law is being rewritten and those rules are the ones most likely to change; not covered until they settle.
• Background checks. No regulation on vetting domestic or villa staff was read.
• Foreign staff. A separate regime.

Common questions