Staffing Agreement Template for Indonesia

The Staffing Agreement is a crucial document used when a company in Indonesia seeks to engage a professional staffing service provider for temporary or permanent workforce solutions. This agreement is particularly important in the Indonesian context due to specific regulatory requirements under Law No. 13 of 2003 on Manpower and related regulations governing outsourcing and labor supply. The document addresses key aspects such as employment terms, social security obligations (BPJS), workplace safety requirements, and compliance with local labor laws. It's essential for businesses looking to maintain flexibility in their workforce while ensuring full compliance with Indonesian employment regulations. The agreement typically includes detailed provisions for staff selection, deployment, management, and transition processes, along with specific protections for both the staffing company and the client.

1. Parties: Identification of the staffing company and the client company, including their legal registration details as required under Indonesian law

2. Background: Context of the agreement and brief description of the staffing services to be provided

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

4. Scope of Services: Detailed description of staffing services, including permitted activities under Indonesian outsourcing regulations

5. Term and Termination: Duration of the agreement and termination provisions in compliance with Indonesian labor law

6. Recruitment and Personnel Requirements: Process for selecting and assigning staff, including qualification requirements

7. Obligations of the Staffing Company: Responsibilities including compliance with labor laws, social security (BPJS) registration, and insurance requirements

8. Obligations of the Client: Client's responsibilities regarding deployed staff and workplace conditions

9. Fees and Payment Terms: Service fees, payment schedule, and terms in compliance with Indonesian wage regulations

10. Employment Status and Relationship: Clear definition of employment relationships between parties in accordance with Indonesian labor law

11. Compliance with Laws: Commitment to comply with Indonesian labor laws, social security requirements, and other relevant regulations

12. Confidentiality: Protection of confidential information and trade secrets

13. Indemnification: Mutual indemnification provisions for legal compliance and workforce-related issues

14. Dispute Resolution: Process for resolving disputes in accordance with Indonesian law

15. Governing Law: Specification of Indonesian law as governing law

16. General Provisions: Standard boilerplate clauses adapted to Indonesian law requirements