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Subcontractor Employment Contract for Indonesia

Subcontractor Employment Contract Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes an employment relationship between a main contractor and a subcontractor. This document complies with Indonesian Labor Law No. 13/2003 and the Omnibus Law (Law No. 11/2020), incorporating mandatory provisions for worker protection, social security requirements, and specific regulations on outsourcing relationships. The contract details the terms of employment, scope of work, compensation, working conditions, and legal obligations while ensuring compliance with local labor regulations and industry-specific requirements.

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What is a Subcontractor Employment Contract?

The Subcontractor Employment Contract is essential for businesses operating in Indonesia that engage subcontractors for specific projects or ongoing services. This document is particularly crucial given Indonesia's strict regulations on outsourcing and employment relationships, as governed by Law No. 13/2003 and the Omnibus Law (Law No. 11/2020). It serves as a legally binding agreement that protects both the main contractor and subcontractor by clearly defining the scope of work, terms of employment, compensation, and compliance requirements. The contract must incorporate mandatory provisions for worker protection, social security (BPJS) registration, workplace safety, and other statutory requirements specific to Indonesian labor law. This document is commonly used in industries such as construction, manufacturing, and technical services where specialized skills or project-based work is required.

What sections should be included in a Subcontractor Employment Contract?

1. Parties: Identification of the contracting parties: the main contractor and the subcontractor

2. Background: Context of the agreement, including the main project details and reason for subcontracting

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Work: Detailed description of services, duties, and responsibilities of the subcontractor

5. Term of Agreement: Duration of the contract, including start date and end date or project completion conditions

6. Compensation and Payment Terms: Wages, payment schedule, method of payment, and any performance-based incentives

7. Working Hours and Location: Specified working hours, overtime provisions, and work location(s)

8. Legal Compliance: Compliance with Indonesian labor laws, including social security (BPJS) registration requirements

9. Health and Safety: Workplace safety requirements and compliance with relevant regulations

10. Confidentiality: Protection of confidential information and trade secrets

11. Reporting Structure: Lines of authority and reporting relationships

12. Termination: Conditions and procedures for contract termination

13. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

14. General Provisions: Standard legal provisions including notices, amendments, and severability

What sections are optional to include in a Subcontractor Employment Contract?

1. Equipment and Tools: Provisions regarding tools and equipment supply and maintenance, used when specific equipment is required for the work

2. Intellectual Property: IP rights and ownership of work product, included when the work involves creation of intellectual property

3. Non-Competition: Restrictions on working with competitors, included for sensitive or specialized work

4. Training Requirements: Specific training or certification requirements, included when special qualifications are needed

5. Performance Metrics: Specific KPIs and performance evaluation criteria, used for performance-based contracts

6. Insurance Requirements: Additional insurance requirements beyond statutory minimums, included for high-risk work

7. Project-Specific Requirements: Special conditions related to specific projects or clients

8. Travel and Expenses: Terms for travel requirements and expense reimbursement, included when work involves travel

What schedules should be included in a Subcontractor Employment Contract?

1. Schedule A - Scope of Services: Detailed breakdown of services and deliverables

2. Schedule B - Compensation Details: Detailed payment terms, rates, and payment schedules

3. Schedule C - Working Hours and Leave Entitlement: Specific working hours, overtime rates, and leave policies

4. Schedule D - Performance Standards: Detailed performance metrics and quality standards

5. Schedule E - Health and Safety Procedures: Specific safety protocols and procedures

6. Appendix 1 - Required Qualifications: List of required certifications, skills, and qualifications

7. Appendix 2 - Equipment List: Detailed list of equipment provided or required

8. Appendix 3 - Reporting Templates: Standard forms and templates for required reports

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

Document Type

Service Contract

Cost

Free to use
Relevant legal definitions






























Clauses






























Relevant Industries

Construction

Manufacturing

Information Technology

Engineering

Oil and Gas

Mining

Infrastructure Development

Telecommunications

Industrial Services

Facilities Management

Technical Services

Professional Services

Relevant Teams

Human Resources

Legal

Procurement

Operations

Project Management

Compliance

Risk Management

Contract Administration

Labor Relations

Relevant Roles

HR Manager

Legal Counsel

Procurement Manager

Project Manager

Operations Manager

Contract Administrator

Compliance Officer

Risk Manager

Site Supervisor

Technical Manager

Resource Coordinator

Labor Relations Manager

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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