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Learn more about Employment Certificate in Indonesia

In Indonesia, an employment certificate is a vital document that confirms an individual’s employment history, job title, and duration of employment with a specific company. It is frequently used by employees as evidence of their employment when applying for services such as property rental or purchase, or other financial services. This document can also serve as proof of employment when applying for government services or for an Employment Application. It assists employers in ensuring that the document contains all necessary information. With Themis Partners, you can easily download this template in Word format. It’s important to note that it is a legal requirement in Indonesia for employers to issue an employment certificate after the Employment Contract as it serves as a record of the employee’s performance. In addition to the Employment Certificate, Themis Partners also provides other related documents that are essential for businesses in Indonesia as the Employment Contract Template and the Employee Warning Letter Template, both of which are designed to ensure legal compliance and protect your interests during the employment lifecycle

Table of contents

What is an employment certificate in Indonesia?

In Indonesia, an employment certificate is a formal document issued by an employer to confirm an individual’s employment history, job title, and duration of employment with the company. It’s often used by employees as proof of their employment when applying for services such as property rental or purchase, or other financial services. This document can also serve as proof of employment when applying for government services or for an Employment Application. It’s important to note that it is a legal requirement in Indonesia for employers to issue an employment certificate after the Employment Contract as it serves as a record of the employee’s performance.


What should be included in an employment certificate?

An employment certificate in Indonesia should include the following information:

➤ The name of the employee
➤ The employee's job title and responsibilities
➤ The period of employment with the company, including the start and end date
➤ A statement confirming that the employee was in good standing during the period of employment
➤ The name and signature of the employer or authorised representative
➤ The date of issuance
➤ The company's stamp or seal

It is also important that the certificate is printed on the company’s letterhead and that it is signed by an authorised representative of the company such as the Human Resource department or the immediate supervisor of the employee. The certificate should also be written in English or in the official language of the company. The information provided in the certificate should be accurate and up-to-date to avoid any confusion or legal issues in the future.

What are the legal requirements when issuing employment certificates?

Employers are required to provide an employment certificate to an employee upon their employment termination. The employment certificate should include details such as the employee’s name, job title, date of employment, reason for termination, and any other relevant information as required by the employee. The employment certificate must be signed by the employer or a person authorised by the employer.

How can it be used to verify employment history and job title?

An employment certificate can be used to verify an individual’s employment history and job title. It should include details such as the employee’s name, job title, date of employment, and reason for termination. This information can be used by future employers to verify an individual’s work experience and job responsibilities.

Additionally, the employment certificate can be used by an employee to prove their employment history for the purpose of obtaining loans, credit, or other financial services. It can also be used as a proof for an employee’s eligibility for certain benefits, such as unemployment insurance or retirement benefits.

How can it be used to apply for loans, credit, or other financial services?

An employment certificate can be used as a key document when applying for loans, credit, or other financial services. Banks and financial institutions often require proof of employment and income as part of their loan or credit application process. An employment certificate can provide this proof by showing the applicant’s job title, salary, and length of employment. This information can be used by financial institutions to assess the applicant’s ability to repay the loan or credit, and to make a credit decision.

In addition to being used as part of the application process, an employment certificate can be used as collateral for a loan. Some financial institutions may require the applicant to have an employment certificate from their current employer in order to be eligible for certain types of loans or credit products.

What are the best practices for creating and issuing an employment certificate?

Our downloadable document is written by lawyers in Indonesia who follow the local jurisdiction so that your employment certificate contains the necessary and up-to-date information. This means providing accurate information about the employee’s job title, salary, and length of employment. The certificate includes the employee’s name, identification number, and the name and contact details of the employer.

Another important practice is to ensure that the certificate is issued in a timely manner. Employees may need the certificate to apply for loans, credit, or other financial services, so it’s important that the certificate is issued as soon as possible after the employee requests it.

How can an employment certificate in Indonesia be used as evidence in a legal dispute?

An employment certificate can be used as evidence in a legal dispute in several ways. For example, if an employee is claiming for wrongful termination, an employment certificate can be used as evidence of the employee’s length of service and job performance. Additionally, it can be used to prove that an employee is eligible for certain benefits such as severance pay or long-service leave. It can also be used as evidence in disputes over salary, commissions, or bonuses. It is proof of employment history to support a claim for unemployment benefits or a loan application. It is important to note that the certificate should be issued by the employer, and be signed and stamped by them.

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