Recruitment Agency Contract Template for Indonesia

The Recruitment Agency Contract serves as a crucial legal framework for companies operating in Indonesia who wish to engage professional recruitment services. This document is essential when a company needs to formalize its relationship with a recruitment agency, ensuring compliance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and Minister of Manpower Regulation No. 39 of 2016. The contract covers all aspects of the recruitment process, from service scope and fee structures to confidentiality and data protection requirements. It's particularly relevant in today's competitive Indonesian job market where companies increasingly rely on professional recruitment agencies for talent acquisition. The document includes specific provisions for candidate warranties, replacement guarantees, and dispute resolution mechanisms, all tailored to the Indonesian legal framework. Whether for one-time recruitment needs or ongoing talent acquisition services, this contract type provides the necessary legal protection and operational clarity for both parties.

1. Parties: Identification of the recruitment agency and the client company, including their complete legal details and authorized representatives

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

3. Definitions: Definitions of key terms used throughout the agreement

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

5. Terms of Engagement: Duration of the agreement, renewal terms, and conditions for termination

6. Fees and Payment Terms: Fee structure, payment schedule, and conditions for success fees or retainers

7. Service Level Agreements: Performance metrics, response times, and quality standards for recruitment services

8. Obligations of the Agency: Agency's responsibilities, including compliance with labor laws and professional standards

9. Obligations of the Client: Client's responsibilities, including provision of information and feedback timelines

10. Confidentiality: Provisions for handling confidential information and candidate data

11. Data Protection: Compliance with Indonesian data protection laws and handling of personal information

12. Non-Solicitation: Restrictions on hiring agency staff or direct hiring of candidates

13. Warranties and Representations: Guarantees provided by both parties regarding their capacity and authority

14. Liability and Indemnification: Limitation of liability and indemnification obligations

15. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

16. General Provisions: Standard boilerplate clauses including force majeure, notices, and amendments