Contractor Employee Agreement Template for Indonesia

The Contractor Employee Agreement is essential for businesses operating in Indonesia that engage independent contractors for specific projects or services. This document type is specifically designed to comply with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and related regulations, while clearly establishing the independent nature of the contractor relationship. It's used when a company needs to engage individual professionals or service providers outside of traditional employment relationships, requiring detailed documentation of service scope, payment terms, and mutual obligations. The agreement helps prevent misclassification risks under Indonesian labor law while protecting both parties' interests through clear terms regarding intellectual property, confidentiality, and performance expectations. This document is particularly relevant in today's growing gig economy and project-based work environment in Indonesia.

1. Parties: Identifies the contracting company and the contractor, including their complete legal names, addresses, and registration details

2. Background: Establishes the context of the agreement and confirms the intention to engage in a contractor relationship

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, including deliverables and performance standards

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

6. Compensation and Payment Terms: Details the contractor's fees, payment schedule, expenses, and invoice procedures

7. Independent Contractor Status: Clearly establishes the nature of the relationship as independent contractor, not employment

8. Contractor's Obligations: Lists the contractor's responsibilities, including quality standards, timeline compliance, and reporting requirements

9. Company's Obligations: Outlines the company's responsibilities, including provision of necessary information and resources

10. Intellectual Property Rights: Addresses ownership and rights to work product created during the engagement

11. Confidentiality: Protects confidential information shared during the engagement

12. Non-Competition and Non-Solicitation: Restricts the contractor from competing or soliciting clients/employees during and after the engagement

13. Compliance with Laws: Ensures adherence to Indonesian laws, including tax and labor regulations

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

15. General Provisions: Standard clauses including amendments, notices, severability, and entire agreement