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Non Employee Contract for Indonesia

Non Employee Contract Template for Indonesia

A comprehensive independent contractor agreement governed by Indonesian law, designed to establish and regulate the professional relationship between a company and an independent contractor. This document ensures compliance with Indonesian civil law while clearly distinguishing the arrangement from an employment relationship under Law No. 13 of 2003 on Manpower. It covers essential elements including service scope, payment terms, intellectual property rights, confidentiality, and termination provisions, while maintaining flexibility for various types of professional services and industry-specific requirements.

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Non Employee Contract

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What is a Non Employee Contract?

This Non Employee Contract template is specifically designed for use in Indonesia when engaging independent contractors, consultants, or freelance professionals. It ensures compliance with Indonesian Civil Code (KUHPerdata) and clearly distinguishes the relationship from employment under Law No. 13 of 2003 on Manpower. The document is particularly useful when companies need to engage external expertise or services without creating an employment relationship, while protecting both parties' interests through clear terms on services, compensation, intellectual property, and confidentiality. It includes provisions for tax compliance, social security considerations, and proper contractor classification under Indonesian law.

What sections should be included in a Non Employee Contract?

1. Parties: Identification of the contracting parties, including company registration details and contractor's business information

2. Background: Context of the agreement and confirmation of contractor's independent business status

3. Definitions: Key terms used throughout the agreement, including 'Services', 'Deliverables', and 'Intellectual Property Rights'

4. Scope of Services: Detailed description of services to be provided and contractor's responsibilities

5. Term and Engagement: Duration of the agreement and nature of the contractor relationship

6. Payment Terms: Fees, payment schedule, expenses, and tax responsibilities

7. Independent Contractor Status: Clear statement of independent contractor status and relationship between parties

8. Contractor's Obligations: Key promises and commitments from the contractor including quality of service and compliance with laws

9. Company's Obligations: Company's responsibilities including provision of necessary information and access

10. Intellectual Property Rights: Ownership and transfer of IP created during the engagement

11. Confidentiality: Protection of confidential information and trade secrets

12. Termination: Grounds for termination and consequences of contract end

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

What sections are optional to include in a Non Employee Contract?

1. Non-Compete: Restrictions on competing activities, used when contractor has access to sensitive business information

2. Equipment and Resources: Include when specific equipment or resources are provided by either party

3. Insurance: Required when contractor needs to maintain specific insurance coverage

4. Performance Metrics: Include when specific performance standards or KPIs need to be met

5. Compliance with Specific Regulations: Add when services involve regulated industries or specific compliance requirements

6. Data Protection: Include when personal data processing is involved

7. Force Majeure: Add when need to address unforeseen circumstances affecting service delivery

8. Assignment and Subcontracting: Include when need to control ability to transfer rights or subcontract work

What schedules should be included in a Non Employee Contract?

1. Schedule 1 - Services Description: Detailed breakdown of services to be provided

2. Schedule 2 - Fee Schedule: Detailed fee structure, payment milestones, and rate card

3. Schedule 3 - Service Levels: Performance standards and metrics if applicable

4. Schedule 4 - Required Insurance: Details of insurance types and coverage levels required

5. Appendix A - Required Forms: Any forms or templates to be used during the engagement

6. Appendix B - Company Policies: Relevant company policies contractor must comply with

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

Cost

Free to use
Relevant legal definitions































Clauses































Relevant Industries

Technology

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Construction

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Relevant Teams

Legal

Human Resources

Procurement

Finance

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Project Management Office

Information Technology

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Project Manager

IT Consultant

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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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