The Staffing Agreement is a crucial document used when a company in Indonesia seeks to engage a professional staffing service provider for temporary or permanent workforce solutions. This agreement is particularly important in the Indonesian context due to specific regulatory requirements under Law No. 13 of 2003 on Manpower and related regulations governing outsourcing and labor supply. The document addresses key aspects such as employment terms, social security obligations (BPJS), workplace safety requirements, and compliance with local labor laws. It's essential for businesses looking to maintain flexibility in their workforce while ensuring full compliance with Indonesian employment regulations. The agreement typically includes detailed provisions for staff selection, deployment, management, and transition processes, along with specific protections for both the staffing company and the client.
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1. Parties: Identification of the staffing company and the client company, including their legal registration details as required under Indonesian law
2. Background: Context of the agreement and brief description of the staffing services to be provided
3. Definitions: Key terms used throughout the agreement, including specific Indonesian legal terms
4. Scope of Services: Detailed description of staffing services, including permitted activities under Indonesian outsourcing regulations
5. Term and Termination: Duration of the agreement and termination provisions in compliance with Indonesian labor law
6. Recruitment and Personnel Requirements: Process for selecting and assigning staff, including qualification requirements
7. Obligations of the Staffing Company: Responsibilities including compliance with labor laws, social security (BPJS) registration, and insurance requirements
8. Obligations of the Client: Client's responsibilities regarding deployed staff and workplace conditions
9. Fees and Payment Terms: Service fees, payment schedule, and terms in compliance with Indonesian wage regulations
10. Employment Status and Relationship: Clear definition of employment relationships between parties in accordance with Indonesian labor law
11. Compliance with Laws: Commitment to comply with Indonesian labor laws, social security requirements, and other relevant regulations
12. Confidentiality: Protection of confidential information and trade secrets
13. Indemnification: Mutual indemnification provisions for legal compliance and workforce-related issues
14. Dispute Resolution: Process for resolving disputes in accordance with Indonesian law
15. Governing Law: Specification of Indonesian law as governing law
16. General Provisions: Standard boilerplate clauses adapted to Indonesian law requirements
1. Training and Development: Provisions for staff training and skill development, used when specific training requirements exist
2. Performance Management: Procedures for monitoring and managing staff performance, included when detailed performance oversight is required
3. Transition Services: Provisions for transitioning staff at contract end, used in long-term or complex staffing arrangements
4. Insurance Requirements: Additional insurance requirements beyond mandatory coverage, used for high-risk positions
5. Data Protection: Specific provisions for handling personal data, used when processing sensitive information
6. Non-Competition: Restrictions on staff deployment to competitors, used in sensitive industries
7. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in post-COVID context
8. Intellectual Property Rights: IP provisions when staff may create or handle intellectual property
1. Schedule A - Fee Schedule: Detailed breakdown of service fees, markup percentages, and payment terms
2. Schedule B - Service Level Agreement: Performance metrics and service standards for the staffing services
3. Schedule C - Required Personnel Qualifications: Specific qualifications and experience requirements for different positions
4. Schedule D - Compliance Checklist: List of required compliance documents and certifications under Indonesian law
5. Schedule E - Benefits Package: Details of employee benefits including mandatory benefits under Indonesian law
6. Appendix 1 - Standard Operating Procedures: Procedures for staff deployment, replacement, and management
7. Appendix 2 - Reporting Templates: Standard forms for performance reporting and staff management
8. Appendix 3 - Code of Conduct: Expected behavior and professional standards for deployed staff
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