All About Partnership Agreement
The position as a work partner as you mentioned basically arises from the existence of a partnership relationship. The definition of partnership can be found in Article 1 number 13 of Law Number 20 of 2008 concerning Micro, Small, and Medium Enterprises ("Law 20/2008")
Partnership is cooperation in business relations, either directly or indirectly, based on the principle of mutual need, trust, strengthening, and benefit involving Micro, Small, and Medium Enterprises with Large Enterprises. In addition to being based on the principle of mutual need, trust, strengthening, and benefit as mentioned above, the parties in the partnership have equal legal standing.
The partnership is implemented through the following patterns
- core-plasma;
- subcontract;
- franchise;
- general trade;
- distribution and agency;
- supply chain; and
- other forms of partnership, such as profit sharing, operational cooperation, joint ventures, and outsourcing.
Every form of partnership carried out by Micro, Small, and Medium Enterprises (“MSMEs”) is stated in a partnership agreement, which at least contains:
- identity of the parties;
- business activities;
- rights and obligations of the parties;
- form of development;
- term of partnership;
- term and mechanism of payment; and
- dispute resolution.
So, based on the rules explained above, a working partner relationship is a legal relationship based on a partnership agreement, namely cooperation in business relations, either directly or indirectly, based on the principle of mutual need, trust, strengthening, and benefit. In which case, the parties have equal legal standing.
