The Labour Supply Contract Agreement is a critical document used in Indonesia when a company (user) requires workforce services from a licensed labor supply provider. This agreement is essential for businesses seeking to outsource certain work functions while maintaining compliance with Indonesian labor laws, including the Manpower Law (Law No. 13 of 2003), Job Creation Law (Omnibus Law), and specific outsourcing regulations. The document outlines the complete relationship between provider and client, including worker deployment terms, statutory compliance requirements, fee structures, and risk allocation. It is particularly important given Indonesia's strict regulations on labor outsourcing, which limit outsourcing to specific business activities and require providers to be formally registered. The agreement must incorporate recent regulatory changes and ensure adequate protection for workers' rights while providing businesses with the flexibility to manage their workforce effectively.
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1. Parties: Identification of the labor supply company (provider) and the client company (user), including their complete legal names, registration numbers, addresses, and authorized representatives
2. Background: Context of the agreement, business purposes, and confirmation that the provider is properly licensed to provide labor supply services in Indonesia
3. Definitions: Definitions of key terms used throughout the agreement, including 'Deployed Workers', 'Services', 'Workplace', etc.
4. Scope of Services: Detailed description of the labor supply services, types of workers to be provided, and the nature of work to be performed
5. Term and Renewal: Duration of the agreement, commencement date, and conditions for renewal
6. Provider Obligations: Provider's responsibilities including worker recruitment, verification of qualifications, training, payroll management, and compliance with labor laws
7. Client Obligations: Client's responsibilities including workplace safety, supervision, access to facilities, and cooperation with the provider
8. Worker Management: Procedures for worker deployment, replacement, performance management, and discipline
9. Fees and Payment Terms: Service fees, payment schedule, calculation method, and any additional charges
10. Compliance and Legal Requirements: Compliance with Indonesian labor laws, social security obligations, and relevant regulations
11. Confidentiality: Protection of confidential information and trade secrets
12. Liability and Indemnification: Allocation of risks and responsibilities between parties
13. Termination: Grounds for termination, notice requirements, and post-termination obligations
14. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law
15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Insurance Requirements: Detailed insurance obligations beyond statutory requirements - include when specific insurance coverage is needed for high-risk work
2. Intellectual Property Rights: Protection of IP rights - include when workers will be involved in creative or technical work
3. Non-Competition: Restrictions on competition - include when workers will have access to sensitive business information
4. Foreign Worker Provisions: Special provisions for foreign workers - include when expatriate workers will be deployed
5. Performance Metrics: Specific KPIs and service levels - include when performance measurement is critical
6. Training Requirements: Specific training obligations - include for specialized or technical roles
7. Security Requirements: Special security measures - include for work in sensitive or high-security environments
1. Schedule 1 - Worker Categories and Fee Structure: Detailed breakdown of worker categories, quantities, and associated fees
2. Schedule 2 - Minimum Worker Qualifications: Required qualifications, experience, and certifications for each worker category
3. Schedule 3 - Service Locations: List of approved work locations and specific requirements for each location
4. Schedule 4 - Standard Operating Procedures: Detailed procedures for worker deployment, replacement, and management
5. Schedule 5 - Required Reports and Documentation: Templates and requirements for regular reporting and documentation
6. Appendix A - Statutory Benefits Summary: Summary of mandatory benefits under Indonesian law
7. Appendix B - Health and Safety Requirements: Specific workplace safety requirements and procedures
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