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Contract Between Company And Contractor for Indonesia

Contract Between Company And Contractor Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes and regulates the relationship between a company and an independent contractor. This document outlines the terms and conditions of engagement, including scope of services, payment terms, intellectual property rights, and compliance requirements under Indonesian regulations, particularly Law No. 13 of 2003 on Manpower. The agreement ensures clear differentiation between contractor and employee status while protecting both parties' interests and maintaining compliance with local labor and business laws.

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Contract Between Company And Contractor

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What is a Contract Between Company And Contractor?

The Contract Between Company And Contractor is a crucial legal instrument used in Indonesian business operations when engaging independent contractors for specific projects or services. This document is essential when a company needs to formalize a non-employment relationship with an individual or entity providing specialized services. It addresses key requirements under Indonesian law, including Law No. 13 of 2003 on Manpower and Minister of Manpower Regulation No. 19 of 2012 on outsourcing provisions. The agreement is particularly important for ensuring clear distinction from employment relationships, establishing service scope, protecting intellectual property, maintaining confidentiality, and ensuring compliance with local regulations. Companies should use this document whenever engaging contractors to prevent potential legal issues and ensure proper documentation of the business relationship.

What sections should be included in a Contract Between Company And Contractor?

1. Parties: Identification of the contracting company and the contractor, including their respective registration details and addresses

2. Background: Context of the agreement and brief description of the company's requirements and contractor's expertise

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

4. Scope of Services: Detailed description of the services to be provided by the contractor

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Contractor's Obligations: Detailed responsibilities and duties of the contractor

7. Company's Obligations: Responsibilities and commitments of the company

8. Compensation and Payment Terms: Fee structure, payment schedule, and related financial terms

9. Independent Contractor Relationship: Clear statement of contractor's status as independent contractor, not an employee

10. Intellectual Property Rights: Ownership and rights regarding work products and pre-existing IP

11. Confidentiality: Protection of confidential information and trade secrets

12. Compliance with Laws: Obligation to comply with Indonesian laws, including specific industry regulations

13. Termination: Grounds and procedures for contract termination

14. Dispute Resolution: Process for resolving disputes under Indonesian law

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

What sections are optional to include in a Contract Between Company And Contractor?

1. Non-Competition: Restrictions on contractor's competitive activities - include when protecting business interests is crucial

2. Equipment and Resources: Provisions regarding tools and resources - include when company provides significant equipment

3. Insurance Requirements: Specific insurance obligations - include for high-risk services or when required by industry regulations

4. Performance Metrics: Specific KPIs and performance standards - include for complex or long-term projects

5. Subcontracting: Terms for engaging subcontractors - include when subcontracting might be needed

6. Force Majeure: Provisions for unforeseen circumstances - include for long-term or critical service contracts

7. Data Protection: Specific data handling requirements - include when personal or sensitive data is involved

8. Training Requirements: Specific training or certification needs - include for technical or specialized services

What schedules should be included in a Contract Between Company And Contractor?

1. Schedule A - Scope of Work: Detailed description of services, deliverables, and technical specifications

2. Schedule B - Fee Schedule: Detailed breakdown of fees, rates, and payment terms

3. Schedule C - Service Levels: Performance standards, metrics, and quality requirements

4. Schedule D - Key Personnel: List of key contractor personnel assigned to the project

5. Schedule E - Company Policies: Relevant company policies contractor must comply with

6. Appendix 1 - Required Permits: List of necessary permits, licenses, and certifications

7. Appendix 2 - Equipment List: Inventory of any company-provided equipment or resources

8. Appendix 3 - Compliance Checklist: Checklist of regulatory and compliance requirements under Indonesian law

Authors

Alex Denne

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

Jurisdiction

Indonesia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions
































Clauses


































Relevant Industries

Construction

Information Technology

Manufacturing

Professional Services

Energy

Mining

Healthcare

Education

Telecommunications

Transportation and Logistics

Consulting

Real Estate

Creative Industries

Engineering

Relevant Teams

Legal

Procurement

Human Resources

Operations

Finance

Compliance

Risk Management

Project Management Office

Business Development

Administration

Relevant Roles

Legal Counsel

Procurement Manager

Human Resources Director

Project Manager

Operations Manager

Contract Administrator

Chief Financial Officer

Business Development Manager

Department Head

Risk Manager

Compliance Officer

General Manager

Managing Director

Chief Operating Officer

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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