The Third Party Work Contract serves as a crucial legal instrument in Indonesia's business environment, where outsourcing and third-party service arrangements are common but strictly regulated. This document is essential when a company needs to engage external service providers for non-core business functions while ensuring compliance with Indonesian labor laws, particularly Law No. 13 of 2003 and related regulations. It provides a comprehensive framework for managing the triangular relationship between the principal company, service provider, and deployed workers, covering aspects from service delivery to worker welfare. The agreement is designed to protect all parties' interests while maintaining compliance with mandatory legal requirements, including worker protection, social security obligations, and operational standards.
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1. Parties: Identification of the principal company and the third-party service provider, including their legal details and authorized representatives
2. Background: Context of the agreement, business purpose, and confirmation that the service provider meets legal requirements for providing third-party services
3. Definitions: Key terms used throughout the agreement, including technical terms, relevant regulations, and specific service-related terminology
4. Scope of Services: Detailed description of services to be provided, including type of work, location, and duration
5. Term and Renewal: Duration of the agreement, conditions for renewal, and termination provisions
6. Service Provider Obligations: Key responsibilities including worker management, compliance with labor laws, and service delivery standards
7. Principal Company Obligations: Responsibilities of the principal company, including access, information provision, and payment obligations
8. Workforce Requirements: Specifications for worker qualifications, numbers, and management structure
9. Compliance with Labor Laws: Specific provisions ensuring compliance with Indonesian labor regulations, including working hours, benefits, and social security
10. Payment Terms: Fee structure, payment schedule, and related financial terms
11. Performance Standards: Service level requirements, quality metrics, and performance evaluation criteria
12. Insurance and Liability: Insurance requirements and allocation of risks between parties
13. Termination: Grounds for termination, notice requirements, and post-termination obligations
14. Governing Law and Dispute Resolution: Confirmation of Indonesian law application and dispute resolution mechanisms
1. Intellectual Property Rights: Required when services involve creation or use of intellectual property
2. Confidentiality: Detailed when sensitive information will be shared between parties
3. Non-Competition: Include when there are concerns about competitive activities
4. Force Majeure: Specific provisions for unforeseen circumstances affecting service delivery
5. International Compliance: Required when services involve international elements or foreign workers
6. Data Protection: Include when personal data processing is involved
7. Environmental Compliance: Required for services with environmental impact
8. Special Industry Requirements: Include specific provisions for regulated industries
1. Schedule A - Scope of Services: Detailed breakdown of services, specifications, and deliverables
2. Schedule B - Service Levels: Specific performance metrics, standards, and measurement criteria
3. Schedule C - Fee Schedule: Detailed pricing, payment terms, and cost calculations
4. Schedule D - Required Personnel: List of key personnel, qualifications, and roles
5. Schedule E - Compliance Documents: Copies of licenses, permits, and certifications
6. Schedule F - Operating Procedures: Detailed procedures for service delivery and coordination
7. Appendix 1 - Insurance Requirements: Specific insurance coverage requirements and limits
8. Appendix 2 - Health and Safety Standards: Required safety protocols and procedures
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Logistics and Supply Chain
Facilities Management
Construction
Mining
Oil and Gas
Financial Services
Retail
Hospitality
Industrial Services
Business Process Outsourcing
Property Management
Healthcare
Transportation
Relevant Teams
Legal
Procurement
Human Resources
Operations
Facilities Management
Vendor Management
Compliance
Risk Management
Finance
Supply Chain
Project Management
Relevant Roles
Chief Operating Officer
Procurement Manager
Legal Counsel
Human Resources Director
Operations Manager
Facility Manager
Vendor Management Specialist
Compliance Officer
Contract Manager
Project Manager
Risk Manager
Supply Chain Manager
General Manager
Chief Financial Officer
Business Unit Head
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