Saturday, October 6, 2012


(Sample Agreement)

A Manpower Supply Service Agreement made and entered into by and between:

------------------------- SDN BHD (----------------),
a company duly incorporated in Malaysia under Companies Act, 1965 having its principal place of business at -------------------------------------------------, Malaysia (“Employer”) of the one part; and

of ------------------------------------------------------------- (“Recruitment Agency”) of the other part.


WHEREAS Employer is a consultant to ----------------- and in search of skilled manpower required for --------------------- oil and gas projects in Malaysia as well as for its international acreage (“------------------”).

AND WHEREAS Recruitment Agency has a profound understanding of manpower selection and recruitment and is able to discern requirements appropriate for ---------------------- needs in the oil and gas projects.


NOW THEREFORE, in consideration of the premises and the mutual covenants flowing from each other, the parties agree to enter into this agreement to bind each other for the purposes herein contained subject to the terms and conditions hereinafter set forth:


1.1     Recruitment Agency agrees to supply and deploy competent and skilled personnel for the manpower requirements needed by Employer to cater for .................... upstream and downstream projects and operations in the oil and gas industry which requirements shall, from time to time, be advised by Employer to Recruitment Agency in the form of Work Order from ............................ (“Work Order”) indicating nature of each work, qualification standards for each position and number of personnel required.

1.2     As from the date hereof, Employer hereby authorizes Recruitment Agency to act as its agent/representative for Employer in matters involving the search for overseas personnel specifically in Indonesia in relation to the oil and gas industry.

1.3     This agreement is non-exclusive for Recruitment Agency and Employer reserves the right to engage other party (ies) to perform similar or identical services.


2.1     Recruitment Agency agrees to source for and pre-qualify candidates, through skill assessment, qualifications and descriptions and make available to Employer all pre-screened applications as requisitioned and described in the Work Order.

2.2     Upon approval of a candidate by Employer, Recruitment Agency shall first, before the candidate is deployed to the Project Site, be assured that the candidate is physically fit as certified by a doctor. If the candidate is later found to be not capable of performing his work by whatsoever reasons and within ninety (90) days from the date of arrival at the Project Site, Recruitment Agency shall be responsible to assume repatriation cost including airfare from the Project Site to back ..................

2.3     Upon Recruitment Agency receiving a Work Order from Employer, Recruitment Agency shall then arrange mobilization of the candidate which include, among other things, assist the candidate in preparing for complete travel documents, obtain approval from the Indonesian Department of Labor and Employment, Department of Foreign Affairs and other necessary government agencies concerned with recruitment of personnel to overseas, secure necessary security clearance, valid passports and travel clearance, ticketing and sending-off of the candidate from....................... to the required place of work (“Project Site”) and do other things necessary for the mobilization of the candidate.


3.1     Employer shall always have final authority on the selection and choice of the candidates for employment.

3.2     Employer shall, for the successful candidates, be responsible to bear fiscal charges, visas, work permits and airfare from Jakarta to the Project Site and their return to ........................ upon completion of the Employment Contract. If, however, Employer requests Recruitment Agency to undertake ticketing of personnel, Recruitment Agency shall then be entitled to an additional ten percentum (10%) of the ticketing as extra charge to Employer.

3.3      Employer shall however, at Employer’s costs and expenses and prior to candidate’s deployment to the Project Site, send successful candidate for medical check-up at any ..................approved medical examiner’s panel followed by Safety Training at ................... approved training centers in Malaysia or elsewhere to obtain Safety Certificate permitting the said personnel to work at any ..................... Project Site.

3.4     Candidates who are required to travel on official business as part of his/her duty is further protected by Employer’s Personal Accident Insurance Cover which associated costs therewith shall be borne by Employer.

3.5     Employer shall be responsible to provide housing accommodation and transportation of personnel throughout the duration of Service and any problem that may arise or be incurred by the personnel at the Project Site such as delayed or non-payment of salary or overtime pay of personnel and other factors beyond the control of Recruitment Agency.

3.6     Employer shall exert possible efforts to enhance welfare and protection of the rights of foreign personnel hired in the agreement in accordance with the laws of the country’s Project Site and the best possible treatment extended to foreign personnel at the Project Site.

3.7     Employer shall be responsible for the medical welfare of its personnel throughout the Employment Contract.

3.8     Employer shall assist the personnel in the regular remittance of his monthly basic salary to his designated account(s) in the personnel’s country home through normal channels.

3.9     Employer shall be responsible for and to pay all the Government Service Tax of Five Percent (5%) and withholding taxes, when due, in relation to Employment Contract.


4.1     Notwithstanding all the rights and benefits as provided for in clause 3 hereof, the accepted personnel shall take up employment under Employment Contract (“Employment Contract”) with Employer which provides, for, inter alia, wages, work hours, overtime pay, site of employment, personnel’s position, contract duration, workmen’s compensation and benefits, provisions for illness, injuries, death, emergency, medical services and facilities, leave, transportation to the site of employment, just causes for termination, transportation for remains and belongings in case of death and so forth.

4.2     The personnel shall agree to perform the service required and agreed in accordance with the Employment Contract, and further agree to comply with and adhere to --------------------’ instructions and directions and follow the standard guidelines and understandable practices with regards to the service to be executed.

4.3     The personnel shall further agree to comply with applicable laws and any governmental authorities the country wherein the personnel are assigned to work and also observe and abide by the pertinent laws of the host country and respect its customs and traditions. Other terms and condition which are not incorporated in the contract shall be covered by the law of the host country.

4.4     The Contract shall commence on such effective date and for such duration as stipulated in Work Order, and in case of any renewal or extension of work order thereof between Employer and ------------------------, the Employment Contract as between Employer with the same personnel shall automatically be renewed but on the same or adjusted terms and conditions of employment as laid down by -----------------------.

4.5     ---------------------- shall have the right to extend the Work Order, by giving to Employer at least thirty (30) days’ written notice prior to expiration of the Work Order. Similarly, Employer shall have the right to extend the employment, by giving the personnel fourteen (14) days’ written notice prior to expiration of the Work Order. However, should Employer fail to extend employment, the personnel does not have any right or whatsoever to claim the amount in a form of commercial damages from Employer and or ---------------------.

4.6     The personnel shall be responsible and pay for all his own employment taxes and other applicable taxes related to his Service, when due.


5.1     Employer and Recruitment Agency shall be jointly and severally liable for any liability that may arise in connection with the recruitment and hiring of the personnel including the full implementation of the Employment Contract in accordance with Malaysian labor laws.


6.1    The service fees for each and every successful candidate shall first of all be agreed and reduced in writing as between Employer and Recruitment Agency prior to any acceptance and mobilization of personnel.

6.2     Upon successful deployment of personnel, Employer will be billed for the services rendered and payable to Recruitment Agency through telegraphic transfer into Recruitment Agent’s accounts in Indonesia or elsewhere as requested.


7.1    Nothing herein contained shall constitute or be implied to have constituted a partnership between the parties hereto and no party shall have any authority to act for or to bind or commit to assume any obligation or responsibility on behalf of any other party.

7.2     Unless as otherwise herein agreed by the parties, each of the parties hereto shall bear its own cost and expenses, including but not limited to, paying out salaries to its own personnel or staffs and other outgoings towards performing its part of obligations under the agreement.

7.3     Each of the parties hereto shall be responsible to bear and pay it own tax.


8.1     All claims and complaints relating to the Employment Contract of the personnel shall be settled in accordance with the company policy, rules and regulations and the Employment Contract. In case the personnel contest the decision of Employer, the matter shall be settled amicably with the participation of the representatives Employer and Recruitment Agency.

8.2     In case the amicable settlement fails, the matter shall be submitted to the competent or appropriate law authority with the mutual agreement of the parties to this agreement hereto.


9.1     Unless earlier termination hereof this agreement will remain valid for four (4) years. In any case, the responsibilities of the parties shall be in effect up to the completion of the last employment contract signed with the recruited personnel and the right of the personnel recruited under this agreement shall always be recognized and the terms and conditions of the Employment Contract be strictly adhered to and complied with.

9.2     Neither party may unilaterally cancel the contract except for legal, just and valid cause (s):

a.     Employer may terminate this agreement on grounds of closure or cessation of operation of the establishment/ undertaking or due to retrenchment to prevent losses, by serving a written notice to the personnel at least one (1) month before the intended date thereof or payment of separation/termination pay equivalent to one (1) month salary in which case Employer shall bear the repatriation expenses of the personnel.

b.     Employer may also terminate this agreement on the following just causes: lack of skills for the job resulting in poor performance, serious misconduct, willful disobedience to Employer’s lawful order, habitual neglect of duties, absenteeism, insubordination, revealing secrets of establishment, engaging in trade union activities, when personnel violates customs, traditions, and laws of the country and/or terms of this agreement in which case Employer shall not bear the repatriation expenses.

c.     Personnel may, on the other hand, terminate his Employment Contract by serving one (1) month in advance written notice to Employer and ------------------. If no notice is served, the personnel shall bear all expenses relative to his repatriation back to his point of origin.

d.     In the event of death of the personnel during the terms of this agreement, his remains and personal belongings shall be repatriated to his country of origin at the expense of Employer. If in the case repatriation of remains is not possible due to whatsoever reason, the same may be disposed of upon prior approval of the Personnel’s next of kin and/or by the Embassy/Consulate of his country of origin nearest to the job site.


10.1     The terms and conditions of this agreement shall be interpreted in accordance with the laws of Malaysia but not to the exclusion of and prejudice to the laws of the country site of employment, international laws, covenants and practices.


11.1      In the event the terms of this agreement shall be affected by the national policies and future legislation of Malaysia and/or the host country, this agreement shall be amended or modified accordingly upon mutual consent of the parties hereto.


12.1     Except as otherwise provided herein, any notice required or permitted to be given pursuant, or in reference, to this agreement shall be in writing and sent by cable or telex or facsimile, to the address of either party as is duly specified in the present agreement.

12.2     Any of the parties may change its address by a notice given to the other in a manner hereinabove set forth.

12.3     Notices given as herein provided shall be considered to have been given fourteen (14) days after the postage date or at the date a telex or facsimile message confirmation has been issued, as the case may be.

IN WITNESS WHEREOF, we have hereunto set our hands on this ______ day of…………………., 20.........

FOR AND IN BEHALF OF -------------------------- SDN BHD

Name : 
In the presence of: 


Name :
Identity Card No: ___________________________
In the presence of: 


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