PKWT

PKWT stands for Perjanjian Kerja Waktu Tertentu, a fixed-term employment agreement used in Indonesia. It governs a working relationship for a defined period, a specific project, or a temporary need, rather than a permanent arrangement. The contract is a legal instrument binding employer and employee for the agreed term.

PKWT is regulated by national labor law and its implementing regulations. The agreement must be in writing and specify the duration, job description, place of work, wage, working hours, and termination terms. Employees under PKWT are entitled to core protections and benefits provided by law, including access to social security programs and paid leave, on a basis consistent with the terms of the contract and applicable regulations.

The use of PKWT is intended for temporary or defined tasks such as seasonal work, replacement of absent staff, or project-based assignments. It is not designed to cover ongoing, permanent needs that would be better served by a permanent contract. Employers should assess whether a PKWT is appropriate for the nature of the work before execution.

Duration and renewal: a PKWT has a fixed term and may be renewed or extended only within statutory limits. If the work continues beyond the maximum term or through multiple renewals, the relationship may be converted to an indefinite-term contract (PKWTT) under applicable rules. The contract may also end early by mutual agreement or under legally specified termination provisions.

End of contract and disputes: A PKWT ends automatically when the term expires. If terminated early or if there is a dispute about status, workers may seek recourse through labor authorities or courts per the law.