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Construction Labor Contract Agreement for Indonesia

Construction Labor Contract Agreement Template for Indonesia

This document serves as a legally binding employment agreement between construction companies and construction workers in Indonesia, governed by Indonesian labor laws including Law No. 13 of 2003 on Manpower and Law No. 2 of 2017 on Construction Services. It outlines the terms and conditions of employment in the construction industry, including work scope, compensation, safety requirements, and worker protections. The agreement ensures compliance with local labor regulations while addressing specific requirements of construction work, including safety protocols, working hours, and site-specific conditions.

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Construction Labor Contract Agreement

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What is a Construction Labor Contract Agreement?

The Construction Labor Contract Agreement is essential for formalizing employment relationships in Indonesia's construction sector. It is used when hiring construction workers, skilled laborers, or specialists for construction projects, ensuring compliance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and Law No. 2 of 2017 on Construction Services. The document covers crucial aspects including work scope, safety requirements, compensation, benefits, and worker protections, while addressing construction-specific considerations such as site conditions, project durations, and technical requirements. This agreement is vital for both protecting worker rights and establishing clear employer expectations in construction projects.

What sections should be included in a Construction Labor Contract Agreement?

1. Parties: Identification of the employer (construction company) and the worker, including their complete legal names, addresses, and registration numbers

2. Background: Context of the agreement, nature of the construction project, and basis for the employment relationship

3. Definitions: Definitions of key terms used throughout the agreement, including technical construction terms and employment-related terminology

4. Scope of Work: Detailed description of the worker's role, responsibilities, and specific construction tasks to be performed

5. Term of Employment: Duration of the contract, including start date, end date (if fixed-term), and any provisions for extension

6. Working Hours and Location: Specified working hours, shift patterns, overtime provisions, and primary work location(s)

7. Compensation and Benefits: Wage rates, payment schedule, overtime rates, and mandatory benefits including BPJS participation

8. Health and Safety: Safety protocols, PPE requirements, and compliance with construction safety regulations

9. Rights and Obligations: Detailed listing of both employer and worker rights and obligations under the agreement

10. Termination: Conditions and procedures for contract termination, notice periods, and severance provisions

11. Dispute Resolution: Procedures for handling disputes, including mediation and legal recourse options

12. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictional matters

13. Execution: Signature blocks and execution requirements for both parties

What sections are optional to include in a Construction Labor Contract Agreement?

1. Mobility Clause: Required when workers may need to work across multiple construction sites or be temporarily relocated

2. Tools and Equipment: Include when specifying employer-provided tools versus worker-owned tools and related responsibilities

3. Confidentiality: Required when workers will have access to sensitive project information or proprietary construction methods

4. Non-Competition: Optional clause for skilled workers, restricting work with competitors during and after employment

5. Training and Certification: Include when specific training or certification requirements exist for the role

6. Accommodation: Required when employer provides housing or accommodation facilities

7. Performance Metrics: Include when specific performance standards or targets are part of the employment terms

8. Insurance: Additional insurance requirements beyond mandatory BPJS coverage

What schedules should be included in a Construction Labor Contract Agreement?

1. Schedule A - Job Description: Detailed description of roles, responsibilities, and required competencies

2. Schedule B - Compensation Structure: Detailed breakdown of basic wage, allowances, and benefits

3. Schedule C - Working Hours Schedule: Detailed work schedules, shift patterns, and break times

4. Schedule D - Safety Procedures: Specific safety protocols and procedures relevant to the worker's role

5. Schedule E - Tools and Equipment List: Inventory of provided tools and equipment, if applicable

6. Appendix 1 - Required Certifications: Copies or lists of required certifications and qualifications

7. Appendix 2 - Site Rules and Regulations: Specific rules and regulations for the construction site

8. Appendix 3 - Emergency Procedures: Emergency contact information and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions



































Clauses






























Relevant Industries

Construction

Infrastructure Development

Real Estate Development

Civil Engineering

Industrial Construction

Residential Construction

Commercial Construction

Mining Construction

Energy Infrastructure

Transportation Infrastructure

Relevant Teams

Human Resources

Legal

Operations

Health and Safety

Project Management

Quality Assurance

Procurement

Compliance

Risk Management

Labor Relations

Relevant Roles

Construction Worker

Site Supervisor

Construction Manager

Civil Engineer

Electrical Technician

Plumber

Carpenter

Masonry Worker

Heavy Equipment Operator

Construction Safety Officer

Quality Control Inspector

Construction Foreman

Scaffolding Specialist

Welder

Construction Electrician

HVAC Technician

Crane Operator

Construction Painter

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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