The Termination of Independent Contractor Agreement is essential when parties wish to formally end their contractor relationship in Indonesia. This document is typically used when either the project completion has been achieved, there is a mutual decision to end the relationship early, or when circumstances require the termination of services. The agreement must comply with Indonesian civil law requirements, particularly the Indonesian Civil Code (KUHPerdata) provisions regarding contract termination. It addresses crucial elements such as final payments, intellectual property rights, confidentiality obligations, and the return of company property. The document serves as a formal record of the termination and helps prevent future disputes by clearly defining each party's rights and obligations during and after the termination process.
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1. Parties: Identification of all parties to the termination agreement, including full legal names and addresses
2. Background: Reference to the original Independent Contractor Agreement, its date, and brief context for the termination
3. Definitions: Key terms used in the termination agreement, including references to defined terms from the original agreement that remain relevant
4. Termination Date: Clear specification of when the original agreement will terminate
5. Final Deliverables: List of any remaining work to be completed before termination
6. Final Payment Terms: Details of final payment calculations, including any pro-rata payments or outstanding fees
7. Mutual Release: Release of claims and liabilities between parties post-termination
8. Return of Property: Requirements for returning any company property, documents, or materials
9. Surviving Obligations: Specification of which original agreement terms survive termination
10. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction
11. Execution: Signature blocks and execution requirements
1. Intellectual Property Transfer: Required if there are specific IP rights that need to be transferred or clarified upon termination
2. Transition Arrangements: Include when there's a need to transfer work or knowledge to another contractor or the company
3. Non-Competition: Include if new non-compete terms are being established or existing ones modified
4. Tax Provisions: Include when there are specific tax considerations or requirements that need to be addressed
5. Dispute Resolution: Include when parties wish to specify particular dispute resolution mechanisms
6. Reference and Announcements: Include when parties want to agree on how the termination will be communicated to third parties
1. Schedule A - Final Payment Calculation: Detailed breakdown of all final payments, including any pro-rata calculations
2. Schedule B - Outstanding Deliverables: List of work items to be completed before the termination date
3. Schedule C - Company Property Register: Itemized list of all company property to be returned
4. Schedule D - Handover Plan: If applicable, detailed plan for transitioning work or projects
5. Appendix 1 - Original Agreement: Copy of the original Independent Contractor Agreement being terminated
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