Outsourced Employee Contract Template for Indonesia

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Key Requirements PROMPT example:

Outsourced Employee Contract

"I need an Outsourced Employee Contract for IT support staff being placed at our Jakarta banking client, starting March 2025, with specific provisions for data security and after-hours support."

Document background
The Outsourced Employee Contract is designed for use in Indonesia when engaging workers through an outsourcing arrangement, complying with Law No. 13 of 2003 on Manpower and related regulations. This document is essential when a company wishes to engage workers through a third-party outsourcing provider while ensuring compliance with Indonesian labor laws. The agreement sets out the triangular relationship between the outsourcing company (as the legal employer), the client company (where the work is performed), and the employee. It includes provisions for work conditions, compensation, benefits, reporting structures, and termination procedures, all aligned with Indonesian legal requirements. The document is particularly relevant for non-core business activities that are permitted to be outsourced under Indonesian law, such as cleaning services, security, catering, and support services.
Suggested Sections

1. Parties: Identification of the three parties: the Outsourcing Company (Employer), the Client Company, and the Employee

2. Background: Context of the outsourcing arrangement and the nature of the work to be performed

3. Definitions: Key terms used throughout the agreement, including specific Indonesian legal terminology

4. Term of Employment: Duration of employment, including start date and whether fixed-term or permanent

5. Job Description and Placement: Detailed description of role, responsibilities, and location of work at Client Company

6. Working Hours and Leave: Standard working hours, overtime provisions, and leave entitlements as per Indonesian law

7. Compensation and Benefits: Salary, mandatory benefits, and social security (BPJS) arrangements

8. Reporting Structure: Clear reporting lines between Employee, Outsourcing Company, and Client Company

9. Confidentiality and Data Protection: Obligations regarding company information and data protection requirements

10. Work Rules and Policies: Compliance with both Outsourcing Company and Client Company policies

11. Termination: Grounds and procedures for termination in accordance with Indonesian labor law

12. Dispute Resolution: Process for handling disputes under Indonesian law

13. Governing Law: Specification of Indonesian law as governing law and relevant jurisdiction

Optional Sections

1. Mobility Clause: Required if the employee may need to work at different client locations

2. Non-Competition: Include if requesting post-employment restrictions (note: limited enforceability in Indonesia)

3. Training and Development: Include if specific training requirements or professional development programs are provided

4. Performance Management: Include if specific KPIs or performance review processes are required

5. Intellectual Property Rights: Required if employee will be involved in creative or technical work

6. Foreign Worker Provisions: Required if the employee is an expatriate, including KITAS requirements

7. Language Provision: Required if contract is bilingual, stating which version prevails

Suggested Schedules

1. Schedule 1 - Detailed Job Description: Comprehensive outline of job responsibilities and requirements

2. Schedule 2 - Compensation Structure: Detailed breakdown of salary components and benefits

3. Schedule 3 - Client Company Specific Requirements: Any specific rules, policies or requirements of the Client Company

4. Schedule 4 - Code of Conduct: Combined code of conduct incorporating both Outsourcing and Client Company requirements

5. Appendix A - Required Documents: List of documents required for employment and social security registration

6. Appendix B - Leave Policy: Detailed leave policy including all types of leave under Indonesian law

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

Business Process Outsourcing

Manufacturing

Facilities Management

Customer Service

Healthcare Support

Logistics and Supply Chain

Retail

Financial Services

Telecommunications

Relevant Teams

Human Resources

Legal

Operations

Facilities Management

Administration

Procurement

Compliance

Risk Management

Relevant Roles

Administrative Assistant

Customer Service Representative

Security Guard

Facilities Maintenance Officer

IT Support Specialist

Data Entry Operator

Receptionist

Cleaning Staff Supervisor

Warehouse Worker

Call Center Agent

Technical Support Representative

Building Maintenance Engineer

Office Support Staff

Logistics Coordinator

Cafeteria Staff

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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