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Placement Agreement for Indonesia

Placement Agreement Template for Indonesia

A comprehensive agreement governed by Indonesian law that establishes the terms and conditions between a placement agency and a client company for recruitment and placement services. The document incorporates requirements from Indonesian labor laws, including Law No. 13 of 2003 on Manpower and relevant ministerial regulations, addressing aspects such as recruitment processes, placement terms, fee structures, compliance requirements, and service standards. It includes provisions for candidate screening, placement guarantees, regulatory compliance, and data protection in accordance with Indonesian legislation.

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What is a Placement Agreement?

The Placement Agreement is essential for companies operating in Indonesia that engage external agencies for their recruitment and staffing needs. This document establishes the legal framework for the relationship between placement agencies and their client companies, ensuring compliance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and the Job Creation Law (Omnibus Law). It covers crucial aspects such as service scope, fees, compliance requirements, and risk allocation, while addressing specific Indonesian regulatory requirements for worker placement and protection. The agreement is particularly important given Indonesia's strict labor regulations and the need for proper documentation of employment-related services. It should be used whenever a company engages a placement agency for recruitment services, whether for permanent placement, temporary staffing, or specialized recruitment campaigns.

What sections should be included in a Placement Agreement?

1. Parties: Identification of the placement agency and the client company, including registration details and addresses

2. Background: Context of the agreement, business purpose, and relationship between parties

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

4. Scope of Services: Detailed description of placement services to be provided, including recruitment, screening, and selection processes

5. Terms of Appointment: Duration of the agreement, exclusivity (if any), and territory coverage

6. Agency Obligations: Detailed responsibilities of the placement agency, including compliance with laws, screening procedures, and service standards

7. Client Obligations: Responsibilities of the client company, including information provision and cooperation requirements

8. Fees and Payment Terms: Fee structure, payment schedule, and related financial terms

9. Compliance Requirements: Obligations regarding Indonesian labor laws, licensing requirements, and regulatory compliance

10. Confidentiality: Protection of confidential information and trade secrets

11. Data Protection: Handling of personal data in compliance with Indonesian data protection laws

12. Warranties and Representations: Warranties provided by both parties regarding capacity, authority, and compliance

13. Liability and Indemnification: Allocation of risks and responsibilities between parties

14. Termination: Conditions and procedures for ending the agreement

15. General Provisions: Standard clauses including notices, amendments, governing law, and dispute resolution

What sections are optional to include in a Placement Agreement?

1. International Placement Provisions: Required when the agreement covers placement of workers internationally, addressing immigration requirements and cross-border compliance

2. Industry-Specific Requirements: Needed for placements in regulated industries (e.g., financial services, healthcare) with specific compliance requirements

3. Training Services: Include when the agency provides additional training services for placed candidates

4. Performance Guarantees: Optional provisions for replacement guarantees or performance warranties for placed candidates

5. Non-Solicitation: Restrictions on hiring agency staff or direct hiring of candidates

6. Insurance Requirements: Specific insurance obligations beyond standard coverage

7. Transition Services: Procedures for handover of responsibilities upon termination

8. Force Majeure: Provisions for handling unforeseen circumstances affecting placement services

What schedules should be included in a Placement Agreement?

1. Schedule 1 - Service Level Agreement: Detailed metrics and standards for placement services

2. Schedule 2 - Fee Schedule: Detailed breakdown of all fees, charges, and payment terms

3. Schedule 3 - Required Documentation: List of documents required for candidate screening and placement

4. Schedule 4 - Compliance Checklist: Checklist of regulatory requirements and compliance procedures

5. Schedule 5 - Standard Operating Procedures: Detailed procedures for recruitment, screening, and placement

6. Appendix A - Reporting Templates: Standard formats for regular reporting and documentation

7. Appendix B - Key Personnel: List of key contacts and responsible personnel from both parties

8. Appendix C - Approved Job Categories: Categories of positions covered under the agreement

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

Agreement Contract

Cost

Free to use
Relevant legal definitions











































Clauses



































Relevant Industries

Manufacturing

Technology

Financial Services

Healthcare

Education

Construction

Mining

Oil and Gas

Retail

Hospitality

Professional Services

Logistics and Transportation

Telecommunications

Agriculture

Consumer Goods

Relevant Teams

Human Resources

Legal

Procurement

Finance

Compliance

Operations

Risk Management

Talent Acquisition

Contract Administration

Senior Management

Relevant Roles

Human Resources Director

Legal Counsel

Recruitment Manager

Talent Acquisition Specialist

HR Business Partner

Compliance Officer

Procurement Manager

Operations Director

Finance Director

Managing Director

Country Manager

HR Operations Manager

Contract Manager

Risk Manager

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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