The Recruitment Agency Agreement With Client is essential for organizations operating in Indonesia that engage external recruitment services for their hiring needs. This document is designed to comply with Indonesian legal requirements, particularly Law No. 13 of 2003 on Manpower and Minister of Manpower Regulation No. 39 of 2016. It establishes the framework for professional recruitment services, defining responsibilities, service standards, and commercial terms between recruitment agencies and their client companies. The agreement is particularly important given Indonesia's complex labor laws and the need for clear documentation of recruitment processes. It includes provisions for fees, service scope, confidentiality, data protection, and compliance with local employment regulations, while protecting both parties' interests in the recruitment process.
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1. Parties: Identifies and provides full details of the recruitment agency and the client company
2. Background: Sets out the context of the agreement, including the agency's expertise and the client's recruitment needs
3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty
4. Scope of Services: Details the recruitment services to be provided by the agency, including search, screening, and candidate presentation processes
5. Agency Obligations: Specifies the agency's responsibilities, service standards, and compliance requirements
6. Client Obligations: Outlines the client's responsibilities, including providing necessary information and feedback
7. Fees and Payment Terms: Details the fee structure, payment schedule, and any additional charges
8. Confidentiality: Addresses the handling and protection of confidential information shared between parties
9. Data Protection: Specifies obligations regarding candidate data handling and privacy compliance
10. Term and Termination: Sets out the duration of the agreement and circumstances for termination
11. Warranties and Indemnities: Contains representations, warranties, and indemnification provisions
12. General Provisions: Includes standard boilerplate clauses such as notices, amendments, and governing law
1. Replacement Guarantee: Terms for replacing candidates who leave within a specified period - used when the agency offers such guarantees
2. Volume Discounts: Special pricing terms for bulk hiring - included when dealing with larger clients with significant hiring needs
3. International Recruitment: Additional terms for cross-border recruitment - needed when the agreement covers international hiring
4. Exclusivity Provisions: Terms granting exclusive rights to the agency - used in strategic partnerships
5. Key Performance Indicators: Specific performance metrics and service levels - included when detailed performance monitoring is required
6. Client Group Companies: Extension of services to client's affiliated companies - used when working with corporate groups
7. Specialized Industry Requirements: Industry-specific compliance requirements - needed for regulated industries
8. Online Portal Access: Terms for using the agency's recruitment platform - included when technology platforms are part of the service
1. Schedule 1 - Fee Structure: Detailed breakdown of all fees, charges, and payment terms
2. Schedule 2 - Service Specifications: Detailed description of recruitment services, processes, and methodologies
3. Schedule 3 - Required Position Details: Template for job specifications and requirements
4. Schedule 4 - Service Level Agreement: Specific timeframes and quality metrics for service delivery
5. Schedule 5 - Data Processing Agreement: Detailed terms for handling personal data in compliance with privacy laws
6. Appendix A - Standard Terms and Conditions: General terms applying to all services
7. Appendix B - Compliance Requirements: Regulatory and statutory compliance obligations
8. Appendix C - Report Templates: Standard formats for candidate presentations and progress reports
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