Self Employed Service Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes and regulates the relationship between a client company and an independent contractor. This document ensures compliance with Indonesian civil code and labor regulations while clearly distinguishing the arrangement from an employment relationship. It covers essential elements including service scope, payment terms, intellectual property rights, and confidentiality obligations, while incorporating specific provisions required under Indonesian contract law and independent contractor regulations. The agreement is structured to protect both parties' interests while maintaining flexibility in the working relationship.

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What is a Self Employed Service Agreement?

The Self Employed Service Agreement is essential for businesses operating in Indonesia that engage independent contractors rather than employees. This document is designed to comply with Indonesian legal requirements, including the Civil Code (KUHPer) and relevant labor regulations, while clearly establishing the independent nature of the relationship. It's particularly relevant in today's growing gig economy and flexible working arrangements in Indonesia. The agreement includes comprehensive provisions for service delivery, payment terms, intellectual property rights, and confidentiality, while ensuring compliance with local tax and regulatory requirements. It's structured to protect both parties' interests and prevent potential misclassification of the relationship as employment, which is crucial under Indonesian labor law.

What sections should be included in a Self Employed Service Agreement?

1. Parties: Identifies the contracting parties - the client and the independent contractor, including their full legal names, addresses, and any relevant registration numbers

2. Background: Outlines the context of the agreement, including the client's needs and contractor's qualifications

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

5. Term and Duration: Specifies the start date and duration of the agreement

6. Payment Terms: Details the fees, payment schedule, invoicing process, and any applicable taxes

7. Independent Contractor Status: Explicitly establishes the relationship as independent contracting, not employment

8. Contractor's Obligations: Lists the contractor's responsibilities, standards of work, and delivery requirements

9. Client's Obligations: Outlines what the client must provide or do to enable the contractor to perform the services

10. Intellectual Property Rights: Addresses ownership and rights to work products created during the service

11. Confidentiality: Protects confidential information shared during the service relationship

12. Termination: Specifies how and when either party can end the agreement

13. Governing Law: Confirms Indonesian law governs the agreement

14. Dispute Resolution: Outlines the process for resolving any disagreements

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

What sections are optional to include in a Self Employed Service Agreement?

1. Non-Compete: Restricts the contractor from competing with the client's business - include when protecting market position is crucial

2. Equipment and Resources: Specifies who provides and maintains necessary equipment - include when significant resources are required

3. Insurance: Requires specific insurance coverage - include for high-risk services or when contractor needs professional liability insurance

4. Performance Metrics: Establishes specific KPIs or quality standards - include when service quality needs objective measurement

5. Subcontracting: Addresses whether and how the contractor can subcontract work - include when subcontracting might be needed

6. Force Majeure: Addresses unforeseeable circumstances preventing performance - include for long-term or critical services

7. Data Protection: Specific provisions for handling personal or sensitive data - include when services involve data processing

8. Training and Support: Outlines any training or support provided by the client - include when specific client systems or processes must be used

What schedules should be included in a Self Employed Service Agreement?

1. Schedule A - Scope of Services: Detailed breakdown of services, deliverables, and timelines

2. Schedule B - Fee Schedule: Comprehensive fee structure, payment milestones, and expense policies

3. Schedule C - Service Levels: Specific performance standards, response times, and quality metrics

4. Schedule D - Client Materials: List of materials, information, or resources to be provided by the client

5. Appendix 1 - Confidential Information: Specific details of what constitutes confidential information

6. Appendix 2 - Approved Subcontractors: List of pre-approved subcontractors if applicable

7. Appendix 3 - Required Insurance: Detailed insurance requirements and coverage limits

8. Appendix 4 - Reporting Templates: Standard formats for progress reports and documentation

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

Jurisdiction

Indonesia

Publisher

Genie AI

Cost

Free to use

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