A Work For Hire Agreement is essential for businesses operating in Indonesia that commission creative, technical, or professional work from independent contractors or freelancers. This document is particularly crucial in the current digital economy where project-based work is increasingly common. It serves to protect the interests of both parties by clearly defining the scope of work, payment terms, and most importantly, establishing the employer's ownership of the created work. Under Indonesian law, particularly considering the Copyright Law (UU No. 28 Tahun 2014) and Manpower Law (UU No. 13 Tahun 2003), such agreements need to explicitly address intellectual property rights transfer and comply with local employment regulations. The agreement is commonly used when commissioning software development, creative content, design work, or any other intellectual property-generating services.
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1. Parties: Identification of the employer and the worker/contractor, including their legal names, addresses, and any relevant registration numbers
2. Background: Context of the agreement, nature of the employer's business, and general purpose of the engagement
3. Definitions: Key terms used throughout the agreement, including 'Work Product', 'Intellectual Property Rights', 'Confidential Information', etc.
4. Scope of Work: Detailed description of the services or work to be performed, including deliverables and quality standards
5. Term and Timeline: Duration of the agreement, including start date, end date (if applicable), and any renewal provisions
6. Compensation and Payment Terms: Details of payment, including amount, payment schedule, expenses, and taxation requirements
7. Ownership of Work Product: Clear assignment of all intellectual property rights to the employer, including moral rights waiver where permitted
8. Confidentiality: Obligations regarding confidential information, including scope, duration, and return of materials
9. Warranties and Representations: Worker's warranties regarding originality of work, right to enter agreement, and compliance with laws
10. Relationship of Parties: Clarification of independent contractor status (if applicable) and no employment relationship
11. Termination: Grounds for termination, notice requirements, and consequences of termination
12. General Provisions: Standard clauses including governing law, dispute resolution, amendments, and notices
1. Non-Competition: Restrictions on competing activities during and after the agreement term - include when there's risk of competitive activity
2. Non-Solicitation: Restrictions on soliciting employees or clients - include for senior roles or client-facing positions
3. Equipment and Resources: Provisions regarding tools and resources provided by employer - include when employer provides significant equipment
4. Insurance: Requirements for insurance coverage - include for high-risk work or when required by industry standards
5. Performance Reviews: Process for evaluating work quality - include for longer-term or complex projects
6. Training and Support: Provisions for any training or support provided - include when specific training is required
7. Force Majeure: Provisions for unforeseen circumstances - include when project is time-sensitive or has critical deadlines
8. Data Protection: Specific provisions for handling personal data - include when work involves processing personal information
1. Schedule A - Scope of Work: Detailed specifications of work to be performed, including technical requirements and deliverables
2. Schedule B - Payment Schedule: Detailed breakdown of payment terms, milestones, and payment amounts
3. Schedule C - Timeline and Milestones: Specific dates and deadlines for project phases and deliverables
4. Schedule D - Technical Specifications: Technical requirements and standards for the work product
5. Appendix 1 - Confidential Information: List of specific confidential information and materials covered by the agreement
6. Appendix 2 - Approved Subcontractors: List of pre-approved subcontractors if applicable
7. Appendix 3 - Required Insurance: Specific insurance requirements including types and coverage amounts
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