The Staffing Agency Contract is essential for businesses operating in Indonesia that require flexible workforce solutions while ensuring compliance with local labor laws. This document is typically used when a company needs to engage a professional staffing agency to manage temporary workforce requirements, whether for project-based work, seasonal demands, or ongoing operational needs. The agreement must strictly adhere to Indonesian regulations, particularly Law No. 13 of 2003 on Manpower and related ministerial regulations governing outsourcing and labor supply. It covers critical aspects such as worker rights, social security obligations, licensing requirements, and operational procedures. The document is structured to protect all parties' interests while ensuring compliance with Indonesia's stringent labor laws and regulatory requirements for staffing arrangements.
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1. Parties: Identification of the staffing agency and the client company, including their legal names, registration numbers, and addresses
2. Background: Context of the agreement, including the staffing agency's licensing status and the client's need for staffing services
3. Definitions: Key terms used throughout the agreement, including 'Assigned Workers', 'Services', 'Assignment Period', etc.
4. Scope of Services: Detailed description of staffing services to be provided, including recruitment, placement, and management of workers
5. Terms of Assignment: General conditions governing worker assignments, including duration, modification, and termination of assignments
6. Responsibilities of the Staffing Agency: Agency obligations including worker screening, compliance with labor laws, payroll management, and insurance
7. Client Obligations: Client responsibilities including workplace safety, supervision, and cooperation with the agency
8. Fees and Payment Terms: Service fees, payment schedule, invoicing procedures, and late payment consequences
9. Compliance with Laws: Obligations to comply with Indonesian labor laws, social security requirements, and other relevant regulations
10. Confidentiality: Protection of confidential information exchanged during the service relationship
11. Worker Management: Procedures for worker supervision, performance evaluation, and handling workplace issues
12. Liability and Indemnification: Allocation of risks and responsibilities between parties, including insurance requirements
13. Term and Termination: Contract duration, renewal terms, and conditions for termination
14. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law provisions
1. Non-Competition: Restrictions on hiring assigned workers directly, used when there's a risk of workers being poached
2. Intellectual Property Rights: IP ownership provisions, included when workers may create IP during assignments
3. Data Protection: Specific provisions for handling personal data, included when significant personal data processing is involved
4. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in volatile business environments
5. Special Industry Requirements: Additional provisions for specific industries with unique regulatory requirements
6. International Assignments: Additional provisions for cross-border placements, if applicable
7. Training and Development: Provisions regarding worker training responsibilities, included when specific skills development is required
1. Schedule 1 - Service Fees: Detailed breakdown of service fees, markup percentages, and special rates
2. Schedule 2 - Required Worker Qualifications: Specific qualifications, skills, and experience requirements for assigned workers
3. Schedule 3 - Service Level Agreement: Detailed performance metrics and service standards
4. Schedule 4 - Standard Operating Procedures: Day-to-day operational procedures including timesheet submission, worker replacement, etc.
5. Schedule 5 - Insurance Requirements: Detailed insurance coverage requirements and minimum coverage amounts
6. Appendix A - Standard Assignment Terms: Template terms for individual worker assignments
7. Appendix B - Compliance Checklist: List of required compliance documents and certifications
8. Appendix C - Key Personnel: List of key contact persons from both parties responsible for contract management
Authors
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Construction
Healthcare
Retail
Hospitality
Financial Services
Mining
Agriculture
Logistics
Education
Professional Services
Relevant Teams
Human Resources
Legal
Procurement
Operations
Compliance
Risk Management
Contract Management
Business Development
Senior Management
Project Management
Relevant Roles
Human Resources Director
Legal Counsel
Procurement Manager
Operations Manager
HR Manager
Compliance Officer
Contract Manager
Business Development Manager
Risk Manager
General Manager
Chief Operating Officer
Project Manager
Talent Acquisition Manager
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