Employment And Independent Contractor Agreements in Indonesia serve as crucial legal instruments for establishing clear working relationships between organizations and individuals. These agreements are essential for companies operating in Indonesia who engage both traditional employees and independent contractors, ensuring compliance with Law No. 13 of 2003 on Manpower and related regulations. The documents outline key terms including scope of work, compensation, benefits, intellectual property rights, and confidentiality obligations, while clearly distinguishing between employment and independent contractor status to avoid misclassification issues. They incorporate mandatory provisions required by Indonesian labor law, including social security participation (BPJS), working hours, leave entitlements, and termination procedures, while providing flexibility to accommodate various industry-specific requirements and working arrangements.
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1. Parties: Identification of the employer/company and the employee/contractor
2. Background: Context of the agreement and the intention to either employ or engage as an independent contractor
3. Definitions: Key terms used throughout the agreement including Employment Period, Services, Workplace, etc.
4. Nature of Relationship: Clear statement of whether the relationship is employment or independent contractor, with specific criteria distinguishing the two
5. Scope of Services/Duties: Detailed description of the role, responsibilities, and services to be provided
6. Term and Duration: Period of employment or engagement, including start date and whether fixed-term or permanent
7. Compensation and Benefits: Salary/fees, payment terms, and statutory benefits as applicable
8. Working Hours and Leave: Standard working hours, overtime provisions, and leave entitlements as per Indonesian law
9. Obligations of the Parties: Specific duties and responsibilities of both parties, including compliance with company policies
10. Confidentiality: Protection of company confidential information and trade secrets
11. Intellectual Property: Ownership and rights to work product and intellectual property created during the engagement
12. Termination: Grounds and procedures for termination, notice periods, and consequences
13. Governing Law: Specification of Indonesian law as governing law and jurisdiction
14. Dispute Resolution: Process for resolving disputes, including reference to Indonesian labor courts if applicable
1. Non-Competition: Restrictions on working with competitors, used when the role involves access to sensitive competitive information
2. Non-Solicitation: Restrictions on soliciting employees or clients, included for senior roles or client-facing positions
3. Performance Reviews: Process for performance evaluation and consequences, typically for permanent employees
4. Training and Development: Provisions for professional development and training requirements, relevant for long-term employees
5. Equipment and Resources: Provisions regarding company-provided equipment and resources, included when specific tools are provided
6. Travel and Expenses: Rules for business travel and expense reimbursement, included when role requires travel
7. Commission Structure: Detailed commission calculations and terms, included for sales or commission-based roles
8. Remote Working: Terms and conditions for remote work arrangements, included when applicable
9. Probationary Period: Terms of initial probationary period, typically for permanent employment relationships
10. Insurance Coverage: Additional insurance requirements beyond statutory minimums, particularly for independent contractors
1. Schedule A - Position Description: Detailed job description, key performance indicators, and reporting relationships
2. Schedule B - Compensation Details: Detailed breakdown of salary/fees, benefits, and payment structures
3. Schedule C - Company Policies: Key company policies that form part of the agreement
4. Schedule D - Statutory Benefits: Summary of statutory benefits and social security entitlements under Indonesian law
5. Schedule E - Confidential Information: Specific list of confidential information and trade secrets to be protected
6. Appendix 1 - Required Certifications: List of required professional certifications or licenses
7. Appendix 2 - Equipment List: Inventory of company-provided equipment and resources
8. Appendix 3 - Service Locations: Approved work locations and any specific requirements for each location
Relevant legal definitions
Clauses
Relevant Industries
Technology
Manufacturing
Professional Services
Financial Services
Healthcare
Education
Construction
Retail
Hospitality
Media and Entertainment
Telecommunications
Energy
Mining
Agriculture
E-commerce
Logistics and Transportation
Relevant Teams
Human Resources
Legal
Finance
Operations
Information Technology
Sales
Marketing
Research and Development
Customer Service
Business Development
Quality Assurance
Administration
Project Management Office
Corporate Communications
Procurement
Relevant Roles
Chief Executive Officer
Department Manager
Software Developer
Business Consultant
Sales Representative
Project Manager
Marketing Specialist
Financial Analyst
HR Manager
Operations Director
Technical Consultant
Research Analyst
Creative Designer
Content Writer
Customer Service Representative
Account Manager
Legal Counsel
Quality Assurance Specialist
Business Development Manager
IT Support Specialist
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