Contractor Agreement For Services Template for Indonesia

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Key Requirements PROMPT example:

Contractor Agreement For Services

"I need a Contractor Agreement for Services for a software development consultant who will be working remotely from Bali, Indonesia for our Jakarta-based tech startup, starting January 2025, with specific provisions for code ownership and data protection."

Document background
The Contractor Agreement For Services is essential for businesses operating in Indonesia that engage independent professionals or service providers. This document is crucial when establishing non-employment professional relationships, ensuring clear differentiation from traditional employment arrangements under Indonesian labor law. It should be used when engaging contractors for specific projects, consulting work, or specialized services where the relationship is clearly that of an independent service provider rather than an employee. The agreement incorporates necessary provisions to comply with Indonesian civil law, tax regulations, and relevant provisions of Law No. 13 of 2003 on Manpower, while addressing key aspects such as service scope, payment terms, intellectual property rights, and confidentiality. This document type is particularly important in the Indonesian business context, where clear distinction between contractors and employees is crucial for legal compliance and risk management.
Suggested Sections

1. Parties: Identifies the contracting parties - the company/client and the contractor, including their full legal names, addresses, and company registration details where applicable

2. Background: Provides context for the agreement, including the contractor's expertise and the company's desire to engage their services

3. Definitions: Defines key terms used throughout the agreement to ensure clarity and prevent misinterpretation

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

5. Term and Termination: Specifies the duration of the agreement and conditions for termination by either party

6. Compensation and Payment Terms: Details the contractor's fees, payment schedule, and method of payment

7. Independent Contractor Status: Clearly establishes the relationship as independent contracting, not employment

8. Contractor's Obligations: Lists the contractor's responsibilities, including quality standards and delivery timeframes

9. Client's Obligations: Outlines the client's responsibilities in facilitating the contractor's work

10. Intellectual Property Rights: Addresses ownership and usage rights of work products created during the engagement

11. Confidentiality: Protects confidential information shared during the course of the engagement

12. Representations and Warranties: States the parties' assurances regarding their capacity and authority to enter into the agreement

13. Limitation of Liability: Sets boundaries on the parties' liability under the agreement

14. Dispute Resolution: Specifies procedures for resolving disputes, including jurisdiction and governing law

15. General Provisions: Includes standard clauses such as force majeure, notices, and amendment procedures

Optional Sections

1. Non-Compete: Restricts the contractor from competing with the client's business - include when protecting market position is crucial

2. Insurance: Requires the contractor to maintain specific insurance coverage - include for high-risk services or when required by industry standards

3. Equipment and Resources: Specifies who provides necessary equipment and resources - include when there are significant equipment requirements

4. Performance Metrics: Establishes specific performance indicators and standards - include for long-term or complex service arrangements

5. Subcontracting: Addresses whether and how the contractor may engage subcontractors - include when subcontracting might be necessary

6. Data Protection: Addresses handling of personal data - include when services involve processing personal information

7. Training and Orientation: Outlines any required training or orientation procedures - include when specific client systems or procedures must be learned

8. Compliance with Specific Regulations: Addresses compliance with industry-specific regulations - include for regulated industries

9. Change Management: Establishes procedures for changing scope or specifications - include for complex or evolving projects

Suggested Schedules

1. Schedule A - Scope of Services: Detailed breakdown of services, deliverables, and technical specifications

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

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

4. Schedule D - Project Timeline: Detailed project phases, milestones, and deadlines

5. Schedule E - Required Equipment/Resources: List of equipment, software, or resources required for service delivery

6. Appendix 1 - Contact Details: Key contact persons and their details for both parties

7. Appendix 2 - Compliance Requirements: Specific regulatory or compliance requirements applicable to the services

8. Appendix 3 - Reporting Templates: Standard templates for required reports and documentation

Authors

Alex Denne

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

Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Construction

Professional Services

Creative Industries

Management Consulting

Engineering

Healthcare

Education and Training

Marketing and Advertising

Financial Services

Real Estate

Environmental Services

Research and Development

Manufacturing

Telecommunications

Relevant Teams

Legal

Human Resources

Procurement

Operations

Finance

Compliance

Contract Administration

Project Management Office

Risk Management

Vendor Management

Relevant Roles

Legal Counsel

HR Manager

Procurement Manager

Project Manager

Operations Director

Finance Manager

Compliance Officer

Contract Administrator

Business Development Manager

Department Head

Managing Director

Chief Operating Officer

Risk Manager

Resource Manager

Vendor Manager

Industries
Indonesian Civil Code (Kitab Undang-undang Hukum Perdata): Provides the fundamental rules for contract formation, validity, and enforcement in Indonesia, including requirements for legal agreements and obligations between parties
Law No. 13 of 2003 on Manpower: While primarily focused on employment relationships, this law is relevant for establishing clear distinctions between contractors and employees to avoid misclassification issues
Government Regulation No. 78 of 2015 on Wages: Relevant for understanding payment structures and ensuring contractor compensation doesn't mirror employee wage patterns that could suggest an employment relationship
Law No. 24 of 2011 on Social Security Administrative Bodies: Important for understanding social security obligations and ensuring the agreement doesn't create unintended social security contribution requirements
Law No. 36 of 2008 on Income Tax: Governs taxation of contractor income and necessary tax provisions that should be included in the agreement
Law No. 11 of 2008 on Electronic Information and Transactions: Relevant if the services involve electronic transactions or if the contract will be executed electronically
Law No. 28 of 2014 on Copyright: Essential for protecting intellectual property rights in service contracts involving creative or original works
Law No. 11 of 2020 on Job Creation (Omnibus Law): Recent comprehensive law that modified various aspects of business and labor regulations, including provisions affecting service agreements
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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