Sample of Procurement Of Labor Contract in Indonesia

PROCUREMENT OF LABOR CONTRACT

FOR ______________

CONTRACT NUMBER: _____________

On this day, Tuesday, February 14, 2017, the parties who signed bellow:

1.     Name               :

            Occupation     :

            Address           :

Acting as on behalf of himself, who shall be hereinafter referred to as the FIRST PARTY

2.     Name               :

            Occupation     :

            Address           :

Acting on behalf of the position as Director for and on the legitimate directors of PT.________________, who shall be hereinafter referred to as the SECOND PARTY

The first Party and The Second Party who shall be hereinafter referred to as THE PARTIES;

The Parties have agreed to enter into an agreement of procurement of labor under the following terms and agreement:

Articles 1

The Scope of Coorporation

1.     The Second Party is willing to provide ________ officer (hereinafter referred to as “Labor”) with standard and completeness as befits Labor. The number of Labors who put forth in an agreement attacthment that is not separated with this agreement and may change according to the needs of the First Party.

2.     The First Party will receive and put the Labor from the Second Party in various place/housing which detemined by the First Party.

3.     The __________ Officer which has been prepared by the Second Party will carry out its duties on February 14, 2017.

Articles 2

Requirements of Labor

The Labor must meet the standards and specific requirements adjusted with the needs of the First Party, namely:

a.     physically and mentally healthy/ no disease;

b.     Good behavior;

c.     Never use drugs;

d.     Minimum height 170 cm with a proportional weight;

e.     Other conditions which will be determined by the First Party.

Articles 3

Responsibilities of The Parties

1.     The First Party is obliged to provide guidance regarding the implementation of the procedure and the responsibility of the Labor from the Second Party, and provide compensation to the Second Party in accordance with Article 8 of this Agreement.

2.     The Second Party is obliged to provide Labor according to the standard and completeness as befits Labor, a number of purposes of the First Party, the Second Party provide replacement for Labor which was considered by the First Party can not afford or have no good behavior.

3.     The second party is obliged to provide salaries and others for support Labor purposes tasks and fulfill all the provisions of labor law, including administrative problems, the Basic Wage, Overtime Wage Work, THR, BPJS Kesehatan as well as Ketenagakerjaan and other benefits that are Labor rights.

4.     The Second Party must observe commissioned Labor to meet the criteria for satisfactory service to the First Party, and the staff / employees, guests, clients, creditors, investors, the First Party donors thus indirectly can increase profits for the First Party.

5.     The Second Party is entitled to receive benefits from the First Party that will be paid through the bank accounts of the Second Party.

6.     The Second Party shall legitimate this agreement to the local Department of Labor in order to obtain legal permission.

Articles 4

Time and Replacement Work

1.     Time Work is adjusted to the applicable regulations in the Company's First Party and on Sundays, national holidays and religious holidays of Labor. The Second Party will continue to perform his job and duty if requested by the First Party with the reference to Article 4, paragraph 2 of this agreement. The working time of each shift is eight (8) hours per day.

2.     In case of excess hours of work/overtime, the regulation and compensation for excess hours from the time specified in point 1 of Article 4 to be a burden and responsibility of the First Party, with reference to Rule of Overtime (KepMenkerTrans No. KEP.102/MEN/VI/2004) or the agreement between both parties.

3.     If the First Party considers that Labor was not able or do not have good behavior, then based on the written request of the First Party, the Second Party will give Labor Substitute at least 5 (five) working days from the date of notification.

4.     Replacement request from the First Party in terms of the replacement, Labor which will be replaced must keep on duty until a successor. All of the replacement cost are a burden and responsibility of the Second Party.

Articles 5

Evaluation and Sanctions

1.     The First Party will evaluate all activities undertaken by the Labor and will provide input, suggestions, and criticisms to the Second Party.

2.     The First Party will provide a written warning if in the performance of its duty, the Labor from the Second Party did negligence. If after the warning letter was given, there was no goodwill from the Second Party for repair, then the First Party has the right to terminate this agreement before completion time, after being given a grace period of 25 (twenty five) working days from the notification of termination of the Agreement is given in writing by  the First Party.

3.     In case of loss of goods or property damage caused by negligence, carelessness and intention of the Labor from the Second Party, it is responsible of the Second Party, as well as First Party required to complain / submit the matter to the Police.

4.     The Parties agree to waive the application of Article 1266 to 1267 of the Indonesian Civil Code (Kitab Undang-Undang Hukum Perdata), so that this closure does not require of the legal decision, but by noticed in writing from the Parties.

Articles 6

Social Security (Jamsostek)

The Second Party is required to include the entire Labors in the Social Security program therefore it frees the First Party for any claims that may arise over the implementation of the provisions of the deviation of the Social Security program.

Articles 7

Confidentiality

1.     Second Party and Labor shall maintain the confidentiality of the Company as set out in the Companies Act (hereinafter referred to as "Confidential Information") and not allowed to propagate to the other party except to be opened because of the legislation in force which require it. Confidential information should still be maintained by the Second Party even if this agreement had ended.

2.     In case of violation of the provisions mentioned in point 1 of Article 7 (seven), then the First Party has the right to sue for damages against the Second Party.

Articles 8

Provision of Honorarium

1.     For the provision of Labor from the Second Party, the First Party is willing to give honorarium in the amount of Rp 0,000,000 (______________________)

2.     The Second Party has the duty of paying the following expenses incurred taxes, among others, but not limited to costs that have been incurred for activities carried out according to the provisions agreed upon in this agreement.

3.     Payment as specified in paragraph 1 and paragraph 2 of this article shall be made at least 15 (fifteen) days after the bills are due every month on the provision of Labor given by the Second Party in the previous months. In case of economic and monetary changes such a way that resulted in one party considers the value of benefits management has become unnatural, the value of the benefits are adjusted in proportion to the above agreement and consent of both parties previously made in writing and is an integral part of this agreement.

4.     In case of changes in the Provincial Minimum Wage (Upah Minimum Provinsi/UMP) issued by the Government of ____________ Province, then the value of the consideration will be changed in accordance with the increase in each region (province).

Articles 9

Termination of The Agreement

1.     This agreement is valid for a period of 6 (six) months commencing from February 14, 2017 through to July 14, 2017 and can be extended automatically for the same period.

2.     If one of the parties at the end of the extension period does not intend to extend this agreement, then such party shall give written notice to the other party at least  15 (Fifteen) days prior to the expiration of this Agreement.

3.     If this Agreement ends, the First Party shall have no obligation to pay any fees to the Second Party as well as Labor from the Second Party.

4.     By the end of this agreement, the Labor status from the Second Party become the Second Party fully dependent or in other words, the First Party shall have no liability to the Labor from the Second Party.

Articles 10

Force Majeure

1.     Force Majeure are events that occur beyond the will and the power to direct and material that may affect the implementation of the obligations of the parties under this agreement, including but not limited to the occurrence of natural events such as earthquakes, hurricanes, floods, landslides , lightning, volcanoes, and other natural disasters, fire, riot, terrorism, sabotage, embargo, and mass strikes, wars whether declared or not, or the provision of state policy that must be obeyed.

2.     In the case of Force Majeure as referred to in paragraph 1 above, a person who suffers Force Majeure is obliged to notify in writing of the occurrence of Force Majeure on the other party at least 14 (fourteen) working days from the occurrence of the Force Majeure and must make a plan on the implementation of the pending obligations with execution time limit of no more than 14 (fourteen) working days after the end of the Force Majeure.

3.     If the Parties are experiencing Force Majeure does not implement their obligations as specified in paragraph 2 above, the Force Majeure shall not be recognized by the other party and all losses, risks and consequences that may arise are the responsibility of the party experiencing the Force Majeure.

Articles 11

Addendum of Agreement

Things are not or insufficiently regulated in this agreement shall be regulated then by agreement of the Parties to be formulated in the form of Addendum which is an integral and inseparable portion of the agreement.

Articles 12

Dispute Settlement and Legal Domicile

1.     This Agreement is subject to and construed in accordance with the laws and regulations of Legislation of the Republic of Indonesia.

2.     The Parties agree and aprove that any dispute that can not be settled amicably, shall be resolved by the judiciary. With regard to this agreement and all its consequences, the Parties agree choose Medan District Court Clerk's Office as a valid legal domicile and permanent.

This agreement is made in two (2) original with same contents, stamped and have the same legal force.

                        First Party                                                 Second Party

         PT.                                                                     PT.

                                                                                                                       

                      DIREKTUR                                                DIREKTUR