This Contract To Hire Independent Contractor agreement is designed for use in Indonesia when a company wishes to engage a professional service provider initially as an independent contractor with the intention of potentially converting them to a permanent employee after a successful evaluation period. The document complies with Indonesian employment and contract laws, including the Civil Code (KUHPerdata) and Labor Law No. 13 of 2003, while addressing crucial aspects such as contractor status, conversion criteria, intellectual property rights, and social security obligations. It's particularly useful for companies seeking to evaluate contractors before making a permanent hiring decision, providing flexibility while ensuring compliance with Indonesian regulatory requirements.
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Key Requirements PROMPT example:
Contract To Hire Independent Contractor
"I need a Contract To Hire Independent Contractor agreement under Indonesian law for engaging a senior software developer for a 6-month initial contract starting January 2025, with the possibility of permanent employment based on performance metrics and project completion."
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1. Parties: Identification of the contracting company and the independent contractor, including complete legal names, addresses, and any relevant registration numbers
2. Background: Context of the agreement, including the company's need for services and the contractor's qualifications
3. Definitions: Key terms used throughout the agreement, including 'Services', 'Deliverables', 'Conversion Period', and 'Employment Terms'
4. Scope of Services: Detailed description of the services to be provided by the contractor, including specific responsibilities and deliverables
5. Term and Conversion: Duration of the contractor period and specific conditions for conversion to permanent employment
6. Compensation and Payment Terms: Fee structure, payment schedule, expenses, and any performance-based incentives
7. Independent Contractor Status: Clear statement of contractor status, tax responsibilities, and disclaimer of employment relationship during the contract period
8. Performance Standards: Expected quality levels, KPIs, and performance evaluation criteria
9. Intellectual Property Rights: Ownership and transfer of work products, pre-existing IP, and related rights
10. Confidentiality: Protection of confidential information, trade secrets, and data privacy obligations
11. Termination: Grounds for termination, notice periods, and consequences of early termination
12. Governing Law and Dispute Resolution: Application of Indonesian law and dispute resolution mechanisms
1. Non-Competition: Restrictions on working with competitors, used when contractor has access to sensitive information or strategic knowledge
2. Equipment and Resources: Provisions regarding company-provided equipment or resources, included when company provides significant tools or access
3. Insurance Requirements: Specific insurance coverage requirements, included for high-risk services or when required by company policy
4. Training and Orientation: Requirements for specific training or orientation programs, included when specialized knowledge transfer is needed
5. Security Requirements: Specific security protocols and compliance requirements, included when handling sensitive data or accessing secure systems
6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term or critical service arrangements
1. Schedule A - Service Description: Detailed scope of work, deliverables, timelines, and performance metrics
2. Schedule B - Compensation Details: Detailed fee structure, payment schedules, and any performance-based incentives
3. Schedule C - Conversion Terms: Specific conditions, timeline, and terms for conversion to permanent employment
4. Schedule D - Company Policies: Relevant company policies and procedures applicable to contractors
5. Appendix 1 - Required Qualifications: List of mandatory qualifications, certifications, and experience requirements
6. Appendix 2 - Compliance Checklist: List of regulatory and company compliance requirements to be maintained
Authors
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Software Development
Consulting Services
Professional Services
Engineering
Construction
Digital Media
Creative Services
Financial Services
Manufacturing
Project Management
Research and Development
Relevant Teams
Human Resources
Legal
Finance
Information Technology
Operations
Project Management Office
Research and Development
Product Development
Digital Marketing
Engineering
Procurement
Relevant Roles
Software Developer
Project Manager
Business Analyst
UX Designer
Digital Marketing Specialist
Financial Analyst
Management Consultant
Engineering Specialist
Content Strategist
Research Analyst
IT Consultant
Technical Architect
Creative Director
Data Scientist
Operations Specialist
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