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Employment Agency Agreement Template for Indonesia

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Key Requirements PROMPT example:

Employment Agency Agreement

"I need an Employment Agency Agreement for my tech company based in Jakarta, focusing on IT recruitment services with candidate replacement guarantees and including provisions for both local and international placements, planned to be effective from March 2025."

Document background
The Employment Agency Agreement serves as the primary contractual framework for establishing and managing the relationship between professional recruitment agencies and their client companies in Indonesia. This document is essential when companies seek to outsource their recruitment processes or engage professional hiring services in compliance with Indonesian regulations. The agreement must align with key legislation including Law No. 13 of 2003 on Manpower and Minister of Manpower Regulation No. 19 of 2012, which specifically govern employment agency operations. It typically covers service scope, fee structures, compliance requirements, candidate warranties, and data protection obligations, while ensuring adherence to local labor laws and business practices. The document is particularly crucial for companies expanding their workforce or requiring specialized recruitment services in the Indonesian market.
Suggested Sections

1. Parties: Identification of the Employment Agency and the Client Company, including their legal registration details and addresses as per Indonesian company registration requirements

2. Background: Context of the agreement, including the agency's licensing status and the client's recruitment needs

3. Definitions: Key terms used throughout the agreement, including specific Indonesian legal terminology and industry-specific terms

4. Scope of Services: Detailed description of recruitment and placement services to be provided, aligned with Minister of Manpower Regulation No. 39 of 2016

5. Agency Obligations: Legal and operational obligations of the employment agency, including compliance with Indonesian labor laws and recruitment standards

6. Client Obligations: Responsibilities of the client company, including information provision and cooperation requirements

7. Service Fees: Fee structure, payment terms, and conditions for various recruitment services

8. Compliance Requirements: Specific compliance obligations under Indonesian labor laws and regulations

9. Confidentiality: Protection of confidential information and data privacy obligations under Indonesian law

10. Term and Termination: Duration of the agreement and conditions for termination

11. Warranties and Representations: Legal warranties from both parties regarding their capacity and compliance with Indonesian law

12. Liability and Indemnification: Allocation of risks and responsibilities between parties

13. Dispute Resolution: Process for resolving disputes under Indonesian law, including choice of forum

14. General Provisions: Standard legal provisions including notices, amendments, and governing law

Optional Sections

1. International Placement: Additional terms for overseas worker placement, required when the agency provides international recruitment services under Law No. 39 of 2004

2. Specialized Recruitment: Specific terms for executive search or specialized professional recruitment services

3. Training Services: Terms covering pre-employment training or skill development programs if offered by the agency

4. Foreign Worker Recruitment: Special provisions for recruiting foreign workers, including compliance with Government Regulation No. 7 of 2017

5. Digital Services: Terms governing online recruitment platforms and digital services under the ITE Law

6. Replacement Guarantee: Terms for candidate replacement guarantees, if offered by the agency

7. Performance Metrics: Specific KPIs and service level agreements when required by the client

Suggested Schedules

1. Schedule 1 - Service Fee Structure: Detailed breakdown of all fees, charges, and payment terms

2. Schedule 2 - Recruitment Process: Step-by-step recruitment procedures and timelines

3. Schedule 3 - Required Documentation: List of mandatory documents for candidates and compliance requirements

4. Schedule 4 - Service Level Agreement: Detailed performance metrics and service standards

5. Appendix A - Agency Licenses: Copies of relevant agency licenses and certifications

6. Appendix B - Standard Forms: Templates for job orders, candidate submissions, and other standard processes

7. Appendix C - Code of Conduct: Ethical guidelines and compliance requirements for recruitment practices

8. Appendix D - Data Protection Protocol: Procedures for handling personal data in compliance with Indonesian regulations

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions









































Clauses






































Relevant Industries

Human Resources Services

Professional Services

Manufacturing

Technology

Financial Services

Healthcare

Education

Retail

Construction

Mining

Energy

Telecommunications

Hospitality

Logistics

Agriculture

Relevant Teams

Human Resources

Legal

Procurement

Compliance

Operations

Business Development

Finance

Risk Management

Administration

Relevant Roles

Human Resources Director

Recruitment Manager

Legal Counsel

Procurement Manager

HR Business Partner

Talent Acquisition Specialist

Compliance Officer

Operations Director

Business Development Manager

Contract Administrator

Chief Human Resources Officer

General Counsel

Managing Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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