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Staffing Agreement Contract Template for Indonesia

This document establishes a legal framework for staffing services in Indonesia, governed by Indonesian labor law, particularly Law No. 13 of 2003 on Manpower and related regulations. It outlines the relationship between a staffing agency and a client company, detailing the terms and conditions for providing temporary or permanent staff, including recruitment processes, service levels, compliance requirements, and commercial terms. The agreement ensures compliance with Indonesian employment regulations while protecting the interests of all parties involved in the staffing arrangement.

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What is a Staffing Agreement Contract?

The Staffing Agreement Contract is essential for businesses operating in Indonesia that require external staffing services. This document is used when a company needs to engage a staffing agency to provide temporary, contract, or permanent workforce solutions while ensuring compliance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and Government Regulation No. 35 of 2021. The agreement covers crucial aspects such as service scope, commercial terms, legal compliance, worker rights, and operational procedures. It's particularly important given Indonesia's strict regulations on outsourcing and labor relationships, requiring careful attention to employment status, social security obligations, and worker protections.

What sections should be included in a Staffing Agreement Contract?

1. Parties: Identification of the staffing agency and the client company, including their legal names, registration numbers, and authorized representatives

2. Background: Context of the agreement, including the staffing agency's business, client's requirements, and purpose of the arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of staffing services to be provided, including recruitment, placement, and management of contracted staff

5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination

6. Staffing Agency Obligations: Key responsibilities of the staffing agency, including recruitment, screening, compliance with labor laws, and worker management

7. Client Obligations: Responsibilities of the client company, including workplace safety, supervision, and cooperation with the staffing agency

8. Fees and Payment Terms: Pricing structure, payment schedule, and invoicing procedures

9. Employment Status: Clear statement of employment relationships and confirmation that contracted staff are employees of the staffing agency

10. Compliance with Laws: Commitment to comply with Indonesian labor laws, social security requirements, and other relevant regulations

11. Confidentiality: Protection of confidential information exchanged during the service provision

12. Insurance and Indemnification: Insurance requirements and mutual indemnification provisions

13. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

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

What sections are optional to include in a Staffing Agreement Contract?

1. Non-Competition: Restrictions on hiring placed staff directly, used when there's risk of direct hiring by the client

2. Performance Metrics: Specific KPIs and service levels, included when detailed performance measurement is required

3. Training Requirements: Specific training obligations for either party, included when specialized training is needed

4. Intellectual Property Rights: IP ownership and protection, included when staff may create IP during their engagement

5. Data Protection: Specific provisions for handling personal data, included when significant personal data processing is involved

6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in uncertain business environments

7. Transition Services: Procedures for transitioning staff at contract end, included for long-term or complex engagements

What schedules should be included in a Staffing Agreement Contract?

1. Schedule 1 - Fee Schedule: Detailed breakdown of fees, markup percentages, and payment terms

2. Schedule 2 - Service Specifications: Detailed description of staffing services, including recruitment processes and service standards

3. Schedule 3 - Required Staff Qualifications: Specific qualifications, skills, and experience required for different staff categories

4. Schedule 4 - Compliance Checklist: List of required compliance documentation and certifications

5. Appendix A - Standard Operating Procedures: Detailed procedures for staff deployment, replacement, and management

6. Appendix B - Reporting Templates: Standard formats for regular reporting and documentation

7. Appendix C - Key Personnel: List of key contacts and responsible personnel from both parties

8. Appendix D - Insurance Requirements: Detailed insurance coverage requirements and certificates

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

Jurisdiction

Indonesia

Cost

Free to use

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