This On Hire Labour Agreement is designed for use in Indonesia when a labor hire company places workers with host companies for temporary or project-based work arrangements. The document ensures compliance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and Minister of Manpower Regulation No. 19 of 2012 governing outsourcing arrangements. It is essential when companies need flexible workforce solutions while maintaining legal compliance and protecting all parties' interests. The agreement covers crucial aspects such as employment terms, responsibilities, compensation, benefits, workplace safety, and dispute resolution procedures, while clearly defining the triangular relationship between the labor hire company, worker, and host company.
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1. Parties: Identification of the labor hire company, the worker, and the host company
2. Background: Context of the agreement and brief description of the arrangement
3. Definitions: Definitions of key terms used throughout the agreement
4. Term of Employment: Duration of employment, including start date and any renewal provisions
5. Nature of Employment: Description of employment status, position, and reporting relationships
6. Place of Work: Location(s) where work will be performed and potential for reassignment
7. Duties and Responsibilities: Detailed description of the employee's role and obligations
8. Working Hours: Standard working hours, overtime provisions, and rest periods
9. Remuneration: Salary, benefits, and payment arrangements
10. Leave Entitlements: Annual, sick, religious, and other leave entitlements
11. Social Security and Insurance: BPJS and other mandatory insurance coverage
12. Workplace Health and Safety: Safety obligations and compliance requirements
13. Confidentiality: Protection of confidential information of both hire company and host company
14. Termination: Grounds and procedures for termination of employment
15. Dispute Resolution: Process for resolving employment-related disputes
16. Governing Law: Specification of Indonesian law as governing law
17. Execution: Signature blocks and execution provisions
1. Probationary Period: Terms of initial probation period - include if probation is required
2. Non-Competition: Restrictions on working with competitors - include for senior positions
3. Intellectual Property: IP ownership and assignment - include if role involves creation of IP
4. Performance Reviews: Performance evaluation process - include for permanent positions
5. Training Requirements: Mandatory training obligations - include if specific certifications needed
6. Travel Requirements: Travel obligations and compensation - include if role requires travel
7. Employee Benefits: Additional benefits beyond statutory requirements - include if offering extra benefits
1. Schedule 1 - Position Description: Detailed description of role, responsibilities, and requirements
2. Schedule 2 - Remuneration Details: Breakdown of salary components and benefits
3. Schedule 3 - Host Company Policies: Relevant workplace policies of the host company
4. Schedule 4 - Safety Procedures: Specific safety requirements and procedures
5. Schedule 5 - Required Certifications: List of required licenses or certifications
6. Appendix A - Code of Conduct: Expected standards of behavior and conduct
7. Appendix B - Statutory Declaration: Employee's declaration of eligibility to work
Authors
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Construction
Mining
Oil and Gas
Technology
Logistics and Supply Chain
Agriculture
Hospitality
Industrial Services
Warehousing
Infrastructure Development
Telecommunications
Maritime and Shipping
Relevant Teams
Human Resources
Legal
Operations
Manufacturing
Quality Assurance
Health and Safety
Project Management
Administration
Logistics
Production
Maintenance
Field Operations
Relevant Roles
Project Manager
Site Supervisor
Construction Worker
Factory Operator
Maintenance Technician
Warehouse Staff
Administrative Assistant
IT Support Specialist
Quality Control Inspector
Production Worker
Equipment Operator
Safety Officer
Logistics Coordinator
Field Engineer
Data Entry Operator
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