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The Employee Lease Agreement is essential for businesses operating in Indonesia that require flexible staffing solutions while maintaining compliance with local labor laws. This document is typically used when a company needs temporary staff augmentation, specialized skills, or workforce flexibility without direct employment obligations. The agreement must strictly adhere to Indonesian regulations, particularly Law No. 13/2003 and Minister of Manpower Regulation No. 19/2012 on outsourcing. It defines the tripartite relationship between the staffing company, client company, and leased employees, covering crucial aspects such as employment terms, benefits, workplace safety, and regulatory compliance. The document is particularly relevant in the context of Indonesia's strict labor laws, which place specific requirements on employee leasing arrangements and protect workers' rights.

1. Parties: Identification of the lessor (staffing company) and lessee (client company), including their legal details and authorized representatives

2. Background: Context of the agreement, including the lessor's authority to provide employee leasing services and the lessee's need for temporary staffing

3. Definitions: Key terms used throughout the agreement, including 'Leased Employees', 'Services', 'Assignment Period', etc.

4. Scope of Services: Detailed description of employee leasing services, including types of positions and roles to be filled

5. Term and Termination: Duration of the agreement, renewal provisions, and circumstances for termination

6. Employee Assignment and Management: Process for employee selection, assignment, replacement, and day-to-day management

7. Responsibilities of the Lessor: Obligations including employee recruitment, payroll, benefits administration, and legal compliance

8. Responsibilities of the Lessee: Obligations regarding workplace safety, supervision, and treatment of leased employees

9. Fees and Payment Terms: Service fees, payment schedule, and any additional charges

10. Employment Status and Compliance: Clarification of employment relationships and compliance with Indonesian labor laws

11. Confidentiality: Protection of confidential information exchanged during the agreement

12. Insurance and Indemnification: Insurance requirements and mutual indemnification provisions

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

14. General Provisions: Standard clauses including notices, amendments, and entire agreement