Utilizing sole proprietorship in Indonesia | Reducing fixed costs
From the perspective of "reducing fixed costs," the use of "sole proprietorships" is attracting attention in Indonesia.
Up until now, a typical method for ``reducing fixed costs'' has been to switch from regular employees to contract employees.
Furthermore, as a form of avoiding direct employment,
Staffing agency (outsource) and contract companies (subcontractor) is a common way to obtain business results by contracting with a "corporation".
Under the law, these contracts are always required between corporations, and the working staff are in an employment relationship with temporary agencies or contract companies.
On the other hand, recently, a new option following these is attracting attention., direct contract with “sole proprietor (freelance)”is.
What is a “sole proprietorship contract”?
A sole proprietorship contract refers to the following:
| sole proprietor | A contract type in which the individual providing the service becomes the business owner and provides services to the company.
Specific example: |
Characteristics of “sole proprietorship contract”
The characteristics of a sole proprietorship contract in Indonesia are as follows.
- Because “there is no employment relationship”There is no “wage” for working hours.
- A form of contract in which “compensation” is paid for the provided services and deliverables.
＝All payment standards are agreed upon in the contract.
= Confidentiality obligations, penalties for violation, conditions for contract renewal, etc.すべて個別の契約書に明記する必要がある
「雇用契約」と「個人事業主契約」の違い
インドネシアでの「雇用契約」と「個人事業主契約」の大きな違いは、適用される法律is.
雇用は「労働法」に守られているのに対し、
個人事業主契約（サービスの売買契約）teeth"民法」や「会社法」に基づきます。
これにより、企業側には以下のような労働法上の義務が適用されません。
-
社会保障への加入
-
最低賃金以上の支払
-
時間外労働賃金の支給
-
宗教大祭手当等の支給
-
退職金の支給
At first glance, it may seem advantageous to the company, but since the contract is between equal business owners, prices are set taking into account the interests of both parties.
As a result,In many cases, temporary expenses exceed the wages of the employee.
「個人事業主契約」のメリットと課題
インドネシアでの個人事業主契約の主なメリットとデメリットは以下です。
個人事業主契約には「成果ベースの契約」だからこその利点もありますが、
決定的な欠点も存在するため、十分な理解が必要となります。
| merit | Fees are incurred only when a request is made to provide a service (or when a result is achieved). |
| Disadvantages | - Difficult to maintain discipline and manage detailed processes. ・Even if there is a violation of the contract, instead of a "warning letter" or "dismissal" like for contract employees, "Claim for damagesor"Cancellation of contract” becomes. - A sole proprietor is a "free individual." In some cases, the company has contracts with multiple companies, including competitors. ＝Information leakorMisuse of confidential informationRisk is not zero either. |
Summary: Choose the employment type that best suits your company
Although it is important to reduce fixed costs, it is dangerous to proceed with the switch to sole proprietorship based solely on cost.
-
Is this a task that should be accumulated and developed as in-house know-how?(= direct employment is suitable)
-
Is it a job that only requires professional results?(=Sole proprietorship is suitable)
What kind of relationship do you want to provide services in? The first step in building an optimal organization is to carefully assess the nature and risks of the business.
Please leave your labor-related concerns, such as utilizing sole proprietorships or reviewing existing employment forms, to our company, Keystone Consulting Group.
We will promptly provide proposals tailored to your company's needs.
For inquiries, please contactherefrom.
