Work Order Agreement Template for Indonesia

A Work Order Agreement under Indonesian law is a formal contract that establishes the terms and conditions for specific work or services to be performed. This document, governed by Indonesian labor laws including Law No. 13 of 2003 on Manpower and relevant regulations, outlines the scope of work, payment terms, timelines, and obligations of both parties. It serves as a legally binding instrument that ensures compliance with local labor regulations while protecting the interests of both the principal company and the service provider. The agreement incorporates mandatory provisions required by Indonesian law regarding working conditions, safety requirements, and social security obligations.

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What is a Work Order Agreement?

The Work Order Agreement is a critical document used in Indonesian business operations when engaging contractors or service providers for specific projects or ongoing services. It serves as a detailed instruction and authorization document that clearly defines the scope, specifications, and terms of work to be performed. This agreement type is particularly important in the Indonesian context as it must comply with specific local labor laws and regulations, including Law No. 13 of 2003 on Manpower and the Omnibus Law provisions. The document is commonly used when a company needs to formally engage external parties for specific tasks, projects, or services, ensuring all work is properly documented and compliant with legal requirements. It includes essential elements such as scope of work, payment terms, timelines, quality standards, and various compliance requirements specific to Indonesian business practices.

What sections should be included in a Work Order Agreement?

1. Parties: Identification of the company/employer and the contractor/worker, including their legal details and addresses

2. Background: Context of the work order, relationship between parties, and general purpose of the agreement

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

4. Scope of Work: Detailed description of the work to be performed, deliverables, and standards

5. Term and Timeline: Duration of the work order, key milestones, and completion dates

6. Payment Terms: Compensation, payment schedule, invoicing requirements, and payment methods

7. Performance Standards: Quality requirements, acceptance criteria, and performance metrics

8. Resources and Materials: Specification of who provides tools, equipment, and materials

9. Reporting Requirements: Progress reporting structure, frequency, and format

10. Health and Safety: Compliance with Indonesian workplace safety regulations and specific safety requirements

11. Compliance with Laws: Obligation to comply with Indonesian labor laws and relevant regulations

12. Termination: Conditions and process for termination of the work order

13. General Provisions: Standard legal clauses including notices, amendments, and governing law

What sections are optional to include in a Work Order Agreement?

1. Intellectual Property Rights: Required when the work involves creation of intellectual property or use of existing IP

2. Confidentiality: Needed when the work involves access to sensitive information or trade secrets

3. Insurance Requirements: Include when specific insurance coverage is required beyond standard BPJS

4. Subcontracting: Include if subcontracting is allowed and under what conditions

5. Equipment and Facilities Access: Required when work is performed at company premises or using company equipment

6. Training Requirements: Include when specific training or certifications are required

7. Force Majeure: Important for longer-term work orders or when work is susceptible to external disruptions

8. Warranty: Include when the work involves creation of products or installations requiring warranty

What schedules should be included in a Work Order Agreement?

1. Schedule A - Detailed Scope of Work: Comprehensive technical specifications and requirements of the work to be performed

2. Schedule B - Price Schedule: Detailed breakdown of costs, rates, and payment milestones

3. Schedule C - Timeline and Deliverables: Detailed project schedule, milestones, and deliverable specifications

4. Schedule D - Health and Safety Requirements: Specific safety procedures, requirements, and compliance standards

5. Schedule E - Key Personnel: List of key personnel assigned to the work order with their roles and qualifications

6. Appendix 1 - Required Forms and Templates: Standard forms for reporting, invoicing, and other administrative requirements

7. Appendix 2 - Technical Standards: Applicable technical standards and specifications for the work

8. Appendix 3 - Site Rules and Procedures: If applicable, rules and procedures for working at specific sites or facilities

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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