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.
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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
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
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
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
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