Human Resources Consulting Agreement Template for Indonesia

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Key Requirements PROMPT example:

Human Resources Consulting Agreement

"I need a Human Resources Consulting Agreement for my Jakarta-based manufacturing company to engage an HR consulting firm for a 6-month organizational restructuring project starting March 2025, with specific provisions for employee data protection and knowledge transfer to our internal team."

Document background
The Human Resources Consulting Agreement is essential for organizations in Indonesia seeking to engage external HR expertise while maintaining legal compliance and clear operational parameters. This document is typically used when a company requires specialized HR advisory services, such as organizational development, recruitment strategy, compensation planning, or HR policy development. The agreement must comply with Indonesian regulations, particularly the Law No. 13 of 2003 on Manpower and the Indonesian Civil Code (KUHPerdata), while also addressing business-specific requirements. It should be drafted in Indonesian language (with optional English translation) as per Law No. 24 of 2009, and includes comprehensive details about service scope, deliverables, professional fees, confidentiality obligations, and intellectual property rights. The document is crucial for protecting both parties' interests and ensuring clear expectations in HR consulting engagements within the Indonesian business context.
Suggested Sections

1. Parties: Identification of the consulting firm and the client company, including their legal registration details and authorized representatives

2. Background: Context of the agreement, including the client's need for HR consulting services and the consultant's expertise and qualifications

3. Definitions: Key terms used throughout the agreement, including but not limited to Services, Deliverables, Confidential Information, and Intellectual Property

4. Scope of Services: Detailed description of the HR consulting services to be provided, including specific areas of focus and objectives

5. Term and Timeline: Duration of the agreement and key milestone dates for service delivery

6. Consultant's Obligations: Detailed responsibilities and commitments of the consulting firm, including quality standards and professional conduct

7. Client's Obligations: Client's responsibilities, including provision of necessary information, access, and cooperation

8. Fees and Payment Terms: Consulting fees, payment schedule, expenses, and related financial terms

9. Confidentiality: Obligations regarding protection of confidential information from both parties

10. Intellectual Property Rights: Ownership and usage rights of materials, methodologies, and deliverables created during the engagement

11. Termination: Conditions and procedures for ending the agreement, including notice periods and consequences

12. General Provisions: Standard legal clauses including governing law, dispute resolution, and notices

Optional Sections

1. Non-Competition: Restrictions on the consultant's ability to work with competing clients, used when the services involve sensitive or strategic HR matters

2. Data Protection: Specific provisions for handling personal data, required when the services involve processing employee personal information

3. Force Majeure: Provisions for unforeseen circumstances preventing performance, particularly relevant in uncertain business environments

4. Insurance: Requirements for professional liability insurance, typically included for high-value or high-risk consulting engagements

5. Compliance with Labor Laws: Specific provisions ensuring compliance with Indonesian labor regulations, needed when the consulting involves direct workforce matters

6. Performance Metrics: Specific KPIs and performance standards, used when the engagement includes measurable outcomes

7. Training and Knowledge Transfer: Provisions for training client's staff, included when knowledge transfer is part of the engagement

Suggested Schedules

1. Schedule A - Scope of Services: Detailed breakdown of specific HR consulting services, methodologies, and deliverables

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

3. Schedule C - Project Timeline: Detailed project plan with milestones, deliverables, and deadlines

4. Schedule D - Key Personnel: List of key consultants assigned to the project and their roles

5. Schedule E - Service Level Agreement: Specific performance standards and metrics for service delivery

6. Appendix 1 - Required Forms and Templates: Standard forms, reports, or templates to be used during the engagement

7. Appendix 2 - Compliance Checklist: Checklist of relevant Indonesian labor laws and regulations applicable to the services

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

Professional Services

Manufacturing

Technology

Financial Services

Healthcare

Retail

Education

Construction

Mining

Telecommunications

Hospitality

Agriculture

Transportation

Energy

Real Estate

Relevant Teams

Human Resources

Legal

Procurement

Executive Leadership

Finance

Operations

Compliance

Learning & Development

Talent Acquisition

Compensation & Benefits

Relevant Roles

HR Director

Chief Human Resources Officer

HR Manager

HR Consultant

HR Business Partner

Talent Acquisition Manager

Compensation and Benefits Manager

Learning and Development Manager

HR Operations Manager

Chief Executive Officer

Chief Operating Officer

General Counsel

Procurement Manager

Contract Manager

Legal Counsel

Industries
Law No. 13 of 2003 on Manpower: The main employment law in Indonesia that governs employment relationships, including provisions about outsourcing and consulting services related to human resources
Indonesian Civil Code (KUHPerdata): Provides the basic framework for contract law in Indonesia, including formation, validity, and enforcement of contracts
Law No. 24 of 2009 on National Flag, Language, Emblem and Anthem: Requires contracts involving Indonesian parties to be drafted in Indonesian language (bilingual versions are permitted)
Government Regulation No. 35 of 2021: Specifically regulates fixed-term employment agreements, outsourcing, rest periods, and termination of employment relationships
Law No. 28 of 2014 on Copyright: Protects intellectual property rights for materials and methodologies developed during consulting engagements
Law No. 11 of 2020 on Job Creation (Omnibus Law): Recent reform affecting various aspects of business and employment law, including provisions relevant to consulting services
Law No. 2 of 2017 on Construction Services: Relevant for consulting services that involve workplace design or construction-related HR advisory
Government Regulation No. 71 of 2020: Regulations on the Implementation of Article 4 paragraph (1) of the VAT Law, affecting taxation of consulting services
Minister of Manpower Regulation No. 8 of 2021: Implements certain provisions of Government Regulation No. 35/2021 regarding employment relationships
Law No. 7 of 2014 on Trade: Governs business activities including consulting services and requirements for business licenses
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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