Recruiting Agency Contract Template for Indonesia

The Recruiting Agency Contract is essential for businesses operating in Indonesia that engage professional recruitment services for their hiring needs. This document is designed to comply with Indonesian labor laws, particularly Law No. 13/2003 on Manpower and related regulations, while establishing clear terms for recruitment services. It should be used when a company needs to formally engage a recruitment agency for talent acquisition, whether for regular staffing, executive search, or volume hiring. The contract includes comprehensive provisions for service scope, fees, candidate guarantees, and compliance requirements, making it suitable for both domestic and international recruitment scenarios. It incorporates necessary protections for all parties while ensuring alignment with Indonesian business practices and regulatory requirements, including recent updates under the Omnibus Law and relevant Ministry of Manpower regulations.

1. Parties: Identification of the recruiting agency and the client company, including their legal status and registration details under Indonesian law

2. Background: Context of the agreement, including the client's recruitment needs and the agency's qualifications and licenses

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

4. Scope of Services: Detailed description of recruitment services to be provided, including search, screening, and candidate presentation processes

5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination

6. Fees and Payment Terms: Structure of recruitment fees, payment schedules, and any additional charges

7. Agency Obligations: Specific responsibilities of the recruiting agency, including compliance with Indonesian labor laws

8. Client Obligations: Responsibilities of the client company, including information provision and feedback timelines

9. Warranties and Representations: Guarantees provided by both parties regarding their authority, capabilities, and compliance with laws

10. Confidentiality: Protection of confidential information and candidate data in accordance with Indonesian data protection laws

11. Replacement Guarantee: Terms of candidate replacement if initial placement is unsuccessful

12. Liability and Indemnification: Allocation of risks and responsibilities between parties

13. Dispute Resolution: Process for resolving disputes under Indonesian law, including jurisdiction and governing law

14. General Provisions: Standard clauses including notices, amendments, and entire agreement provisions