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Self Employment Agreement for Indonesia

Self Employment Agreement Template for Indonesia

A comprehensive legal document governed by Indonesian law that establishes and regulates the relationship between a company (client) and an independent contractor. This agreement clearly defines the self-employment nature of the engagement, outlining the scope of services, payment terms, intellectual property rights, and confidentiality obligations while ensuring compliance with Indonesian labor and tax regulations. The document includes specific provisions to distinguish the arrangement from an employment relationship, protecting both parties' interests while maintaining flexibility in the working arrangement.

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Self Employment Agreement

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What is a Self Employment Agreement?

The Self Employment Agreement is essential for businesses operating in Indonesia that engage independent contractors, consultants, or freelancers. This document is crucial in today's evolving workplace where flexible working arrangements are increasingly common. It complies with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower, and tax regulations, while clearly establishing the independent nature of the relationship. The agreement is designed to protect both parties by clearly defining the scope of services, payment terms, intellectual property rights, and other crucial aspects of the working relationship. It's particularly relevant given Indonesia's growing gig economy and the increasing number of professionals choosing self-employment arrangements.

What sections should be included in a Self Employment Agreement?

1. Parties: Identifies the contracting parties - the client and the self-employed contractor

2. Background: Sets out the context of the agreement and confirms the intention to create a self-employment relationship

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Services: Detailed description of the services to be provided by the contractor

5. Term and Engagement: Duration of the agreement and nature of the engagement

6. Independent Contractor Status: Explicitly establishes the independent nature of the relationship and distinguishes from employment

7. Fees and Payment Terms: Details of compensation, payment schedule, and expense arrangements

8. Contractor's Obligations: Key responsibilities and commitments of the contractor

9. Client's Obligations: Key responsibilities and commitments of the client

10. Intellectual Property: Ownership and rights regarding work products and pre-existing IP

11. Confidentiality: Protection of confidential information and trade secrets

12. Termination: Conditions and procedures for ending the agreement

13. Governing Law: Confirms Indonesian law governs the agreement

14. Dispute Resolution: Process for resolving disagreements

15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Self Employment Agreement?

1. Non-Compete: Restrictions on competing activities - include when contractor will have access to sensitive business information

2. Equipment and Resources: Details of any equipment or resources provided - include when client provides specific tools or facilities

3. Insurance: Insurance requirements - include when services involve higher risk activities

4. Performance Metrics: Specific performance standards - include when measurable outcomes are crucial

5. Subcontracting: Rights and restrictions on subcontracting - include when subcontracting might be necessary

6. Data Protection: Specific data handling requirements - include when personal or sensitive data is involved

7. Training Requirements: Specific training or certification requirements - include for specialized services

8. Force Majeure: Provisions for unforeseen circumstances - include for longer-term agreements

What schedules should be included in a Self Employment Agreement?

1. Schedule A - Scope of Services: Detailed breakdown of services, deliverables, and timelines

2. Schedule B - Fee Schedule: Detailed breakdown of fees, payment milestones, and rate calculations

3. Schedule C - Service Levels: Specific performance standards and metrics if applicable

4. Schedule D - Client Policies: Relevant client policies the contractor must comply with

5. Appendix 1 - Required Qualifications: List of required certifications, licenses, or qualifications

6. Appendix 2 - Approved Subcontractors: List of pre-approved subcontractors if applicable

7. Appendix 3 - Equipment List: Inventory of any provided equipment or resources

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



































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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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