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Agreement For Job Work for Indonesia

Agreement For Job Work Template for Indonesia

An Agreement for Job Work under Indonesian law is a legally binding contract between a principal employer and a contractor for the execution of specific work or services. This agreement is governed by Indonesian Labor Law (Law No. 13 of 2003 on Manpower) and the Indonesian Civil Code, establishing the terms and conditions under which the contractor will perform defined tasks or projects. The document outlines work specifications, payment terms, safety requirements, and compliance with Indonesian labor regulations, while clearly defining the rights, obligations, and liabilities of both parties. It incorporates mandatory provisions required by Indonesian law, including worker protection measures and social security requirements.

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What is a Agreement For Job Work?

The Agreement For Job Work is a crucial document used in Indonesia when a company (principal employer) needs to engage a contractor for specific project work or services. This agreement type is particularly important in the Indonesian business context as it must comply with strict local labor laws and regulations, including Law No. 13 of 2003 on Manpower and Minister of Manpower Regulation No. 19 of 2012 on outsourcing arrangements. The document serves to clearly define the scope of work, establish performance standards, and protect both parties' interests while ensuring compliance with local legal requirements. It includes essential provisions for worker protection, social security obligations, safety standards, and dispute resolution mechanisms, making it suitable for various industrial and commercial projects where external contractors are engaged for specific tasks or specialized work.

What sections should be included in a Agreement For Job Work?

1. Parties: Identifies the principal employer and the contractor, including their legal details and authorized representatives

2. Background: Contextual information about the parties' business relationship and the purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

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

5. Duration of Agreement: Specifies the term of the agreement, including start date, completion date, and any extension provisions

6. Payment Terms: Details of compensation, payment schedule, invoicing requirements, and tax considerations

7. Contractor's Obligations: Comprehensive list of contractor's responsibilities, including compliance with laws and safety standards

8. Principal's Obligations: Responsibilities of the principal employer, including access to site, information provision, and cooperation requirements

9. Work Standards and Quality: Required quality standards, inspection procedures, and acceptance criteria

10. Safety and Compliance: Mandatory safety requirements and compliance with Indonesian labor and safety regulations

11. Insurance and Liability: Insurance requirements and allocation of risks between parties

12. Termination: Grounds for termination, notice requirements, and consequences of termination

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

14. General Provisions: Standard contractual provisions including notices, amendments, and severability

What sections are optional to include in a Agreement For Job Work?

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

2. Confidentiality: Needed when sensitive information will be shared during the work performance

3. Performance Bonds: Include when security for performance is required, especially for high-value contracts

4. Equipment and Materials: Required when specific provisions about supply and ownership of equipment/materials are needed

5. Subcontracting: Include when subcontracting might be permitted under certain conditions

6. Force Majeure: Particularly relevant for long-term contracts or work susceptible to external disruptions

7. Environmental Compliance: Required for work involving environmental impacts or risks

8. Local Content Requirements: Include when specific Indonesian local content requirements apply to the work

9. Training and Knowledge Transfer: Relevant when the work involves skill transfer to principal's employees

What schedules should be included in a Agreement For Job Work?

1. Schedule 1 - Detailed Scope of Work: Technical specifications and detailed description of work requirements

2. Schedule 2 - Bill of Quantities: Itemized list of work items and their corresponding prices

3. Schedule 3 - Payment Schedule: Detailed breakdown of payment milestones and amounts

4. Schedule 4 - Project Timeline: Detailed work schedule including milestones and completion dates

5. Schedule 5 - Key Personnel: List of key personnel from both parties involved in the project

6. Schedule 6 - Equipment and Materials: Detailed list of equipment and materials to be used or supplied

7. Schedule 7 - HSE Requirements: Detailed health, safety, and environmental requirements

8. Appendix A - Required Permits and Licenses: List of necessary permits and licenses for the work

9. Appendix B - Insurance Requirements: Detailed insurance specifications and coverage requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions








































Clauses





































Relevant Industries

Construction

Manufacturing

Mining

Infrastructure Development

Industrial Projects

Engineering Services

Maintenance Services

Facility Management

Information Technology

Telecommunications

Oil and Gas

Energy

Transportation

Logistics

Warehousing

Relevant Teams

Legal

Procurement

Operations

Human Resources

Compliance

Risk Management

Project Management

Facilities Management

Commercial

Health and Safety

Technical Operations

Business Development

Contract Administration

Relevant Roles

Legal Counsel

Procurement Manager

Project Manager

Contract Administrator

Operations Director

Human Resources Manager

Compliance Officer

Risk Manager

Site Manager

Facility Manager

Technical Director

Chief Operating Officer

Commercial Manager

Business Development Manager

Health and Safety Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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