The Declaration of Independent Contractor Status Form is a critical document used in Indonesian business relationships to establish clear boundaries between independent contractors and employees. This distinction is particularly important under Indonesian labor law, specifically Law No. 13 of 2003 on Manpower, which provides different rights and obligations for employees versus independent contractors. The document is typically used when engaging new contractors or formalizing existing contractor relationships, and includes detailed declarations about business independence, financial arrangements, work control, and regulatory compliance. It helps protect both the hiring company and the contractor by clearly documenting the nature of their professional relationship and preventing potential misclassification issues under Indonesian employment law.
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1. Parties: Identification of the contracting company and the independent contractor, including full legal names, addresses, and business registration numbers where applicable
2. Background: Brief context explaining the purpose of the declaration and the intended business relationship between the parties
3. Definitions: Key terms used in the declaration, including 'Independent Contractor', 'Services', and other relevant terminology
4. Declaration of Independent Business: Contractor's explicit declaration of operating an independent business, including details of their business structure and operations
5. Control and Independence Statement: Declaration of the contractor's autonomy in performing services, including control over work methods, schedule, and tools
6. Financial Responsibility Declaration: Statement acknowledging contractor's responsibility for their own expenses, taxes, and business costs
7. Social Security and Benefits Acknowledgment: Confirmation that the contractor is responsible for their own social security arrangements and receives no employee benefits
8. Compliance with Laws: Statement of compliance with Indonesian tax laws and business regulations
9. Signature and Declaration: Formal attestation of the truth of all statements and understanding of legal implications
1. Previous Employment Declaration: Used when the contractor was previously an employee of the company, declaring clear separation from past employment status
2. Multiple Client Declaration: Used when demonstrating that the contractor provides services to multiple clients, strengthening independent contractor status
3. Equipment and Tools Statement: Used when the contractor provides their own significant equipment or tools, supporting independent status
4. Specialized Skills Declaration: Used when the contractor provides highly specialized services not part of the company's core business
1. Schedule A - Business Details: Details of the contractor's business including registration numbers, licenses, and permits
2. Schedule B - Services Description: Detailed description of the type of services provided by the contractor
3. Appendix 1 - Documentation Checklist: List of required documentation supporting independent contractor status
4. Appendix 2 - Tax Registration Evidence: Copies or details of tax registration and compliance documentation
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