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Temp Agency Contract for Indonesia

Temp Agency Contract Template for Indonesia

This document establishes the legal framework for temporary staffing arrangements in Indonesia, governed by Law No. 13/2003 on Manpower and Minister of Employment Regulation No. 19/2012. It defines the relationship between a temporary employment agency and a client company, detailing the terms for providing temporary workers while ensuring compliance with Indonesian labor laws. The agreement covers essential aspects including service scope, worker assignment processes, fee structures, compliance requirements, and mandatory social security provisions under BPJS regulations.

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What is a Temp Agency Contract?

The Temp Agency Contract serves as the primary agreement governing the relationship between temporary employment agencies and client companies in Indonesia. This document is essential when companies need flexible workforce solutions while ensuring compliance with Indonesian labor laws, particularly Law No. 13/2003 and MOE Regulation 19/2012. It should be used whenever a company plans to engage temporary workers through an agency, providing comprehensive coverage of service terms, worker management procedures, compliance requirements, and financial arrangements. The contract addresses crucial elements including BPJS social security compliance, worker classification, assignment procedures, and risk allocation between parties, while adhering to specific Indonesian regulatory requirements for temporary employment arrangements.

What sections should be included in a Temp Agency Contract?

1. Parties: Identifies the contracting parties: the temporary employment agency, the client company, and reference to temporary workers

2. Background: Explains the context of the agreement and the intention to establish a temporary staffing arrangement

3. Definitions: Defines key terms used throughout the agreement, including 'Temporary Workers', 'Assignment', 'Services', etc.

4. Scope of Services: Details the temporary staffing services to be provided by the agency to the client

5. Agency Obligations: Outlines the agency's responsibilities including recruitment, screening, and compliance with labor laws

6. Client Company Obligations: Specifies the client's responsibilities regarding worker supervision, safety, and workplace conditions

7. Worker Assignment Process: Details the procedure for requesting, selecting, and assigning temporary workers

8. Fees and Payment Terms: Specifies the fee structure, payment schedule, and related financial terms

9. Employment Status: Clarifies the employment relationship between parties and worker classification under Indonesian law

10. Compliance with Labor Laws: Addresses compliance with Indonesian labor regulations, including working hours, wages, and benefits

11. Insurance and BPJS Coverage: Details mandatory social security and health insurance requirements

12. Confidentiality: Establishes confidentiality obligations for all parties

13. Term and Termination: Specifies the duration of the agreement and termination provisions

14. Dispute Resolution: Outlines the process for resolving disputes under Indonesian law

15. Governing Law: Confirms Indonesian law as the governing law of the agreement

What sections are optional to include in a Temp Agency Contract?

1. Non-Competition: Includes restrictions on hiring temporary workers directly, used when the agency wants to protect its workforce

2. Intellectual Property Rights: Added when temporary workers may create or access intellectual property

3. Performance Metrics: Included when specific performance standards for temporary workers need to be established

4. Training Requirements: Used when specific training obligations need to be allocated between agency and client

5. International Assignments: Required when temporary workers may be assigned to work outside Indonesia

6. Data Protection: Added when significant personal data processing is involved

7. Force Majeure: Included when parties want specific provisions for unforeseen circumstances

What schedules should be included in a Temp Agency Contract?

1. Schedule 1: Fee Schedule: Detailed breakdown of agency fees, markup rates, and payment terms

2. Schedule 2: Service Level Agreement: Specific metrics and standards for agency performance

3. Schedule 3: Worker Categories and Qualifications: Lists of job categories and required qualifications for each

4. Schedule 4: Standard Operating Procedures: Detailed procedures for worker requests, replacement, and issue resolution

5. Schedule 5: Compliance Checklist: Checklist of regulatory requirements and compliance measures

6. Appendix A: Standard Assignment Terms: Template terms for individual worker assignments

7. Appendix B: Required Forms and Documents: Templates for necessary documentation and regulatory forms

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








































Clauses







































Relevant Industries

Manufacturing

Construction

Information Technology

Retail

Hospitality

Logistics and Supply Chain

Healthcare

Financial Services

Agriculture

Mining

Energy

Telecommunications

Relevant Teams

Human Resources

Legal

Procurement

Operations

Compliance

Finance

Project Management

Risk Management

Contract Administration

Business Development

General Management

Relevant Roles

Human Resources Director

Legal Counsel

Procurement Manager

Operations Manager

Compliance Officer

Finance Director

Project Manager

Recruitment Manager

Risk Manager

Contract Administrator

Business Unit Head

General Manager

Country Manager

Labor Relations 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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