Construction Employee Contract for Indonesia

Construction Employee Contract Template for Indonesia

This document serves as a comprehensive employment contract specifically designed for the construction industry in Indonesia, complying with Law No. 13 of 2003 on Manpower and Law No. 2 of 2017 on Construction Services. It establishes the terms and conditions of employment between a construction company and its employee, covering essential aspects such as job responsibilities, safety requirements, compensation, benefits, and working conditions specific to construction work. The contract incorporates mandatory provisions under Indonesian labor law while addressing industry-specific requirements including site mobility, safety protocols, and project-based assignments.

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What is a Construction Employee Contract?

The Construction Employee Contract is a crucial document for establishing formal employment relationships in Indonesia's construction sector. It is designed for use when hiring both skilled and unskilled construction workers, technical specialists, and supervisory personnel. The contract ensures compliance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and Law No. 2 of 2017 on Construction Services, while addressing industry-specific requirements such as workplace safety, project mobility, and specialized certifications. This document is essential for construction companies operating in Indonesia to properly document employment terms, protect both employer and employee interests, and maintain regulatory compliance. It includes provisions for working hours, compensation, benefits, safety protocols, and other terms specific to construction work, while remaining flexible enough to accommodate various construction roles and project types.

What sections should be included in a Construction Employee Contract?

1. Parties: Identification of the employer (construction company) and employee with complete legal names and addresses

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the contract including job titles, project sites, and technical terms

4. Position and Duties: Detailed description of the employee's role, responsibilities, and reporting structure

5. Term of Employment: Duration of employment, whether fixed-term or permanent, including probation period if applicable

6. Working Hours and Location: Standard working hours, shift patterns, and primary work location or project sites

7. Compensation and Benefits: Base salary, allowances, overtime rates, and mandatory benefits as per Indonesian law

8. Leave Entitlements: Annual leave, sick leave, religious holiday leave, and other statutory leave provisions

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

10. Social Security and Insurance: BPJS Employment and Health Insurance coverage as required by Indonesian law

11. Confidentiality: Protection of company's confidential information and trade secrets

12. Termination: Grounds for termination, notice periods, and severance calculations as per labor law

13. Governing Law: Confirmation of Indonesian law governance and dispute resolution procedures

What sections are optional to include in a Construction Employee Contract?

1. Mobility Clause: Required when employee may need to work across multiple construction sites or relocate

2. Training and Certification: Include when specific construction certifications or ongoing training is required

3. Project-Based Terms: Necessary for employees hired for specific construction projects

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

5. Tools and Equipment: Required when specifying employer-provided equipment or employee's own tools

6. Non-Competition: Include for senior positions or when protecting company interests in competitive projects

7. Accommodation: Include when housing or accommodation is provided for remote construction sites

8. Special Allowances: For hazard pay, remote site allowances, or special skill premiums

What schedules should be included in a Construction Employee Contract?

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

2. Schedule B - Compensation Structure: Detailed breakdown of salary components, allowances, and benefits

3. Schedule C - Safety Protocols: Specific safety requirements and procedures for the role

4. Schedule D - Required Certifications: List of mandatory certifications and qualifications for the position

5. Schedule E - Project Sites: List of construction sites or locations where employee may be required to work

6. Appendix 1 - Code of Conduct: Company's code of conduct and workplace policies

7. Appendix 2 - Equipment List: Inventory of tools and equipment provided or required

8. Appendix 3 - Benefits Summary: Detailed explanation of all benefits and insurance coverage

Authors

Alex Denne

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

Jurisdiction

Indonesia

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Construction

Civil Engineering

Infrastructure Development

Real Estate Development

Industrial Construction

Residential Construction

Commercial Construction

Mining Construction

Energy Infrastructure

Transportation Infrastructure

Relevant Teams

Human Resources

Operations

Engineering

Quality Assurance

Health and Safety

Project Management

Site Operations

Technical Services

Procurement

Compliance

Legal

Administration

Relevant Roles

Construction Worker

Site Supervisor

Project Manager

Civil Engineer

Structural Engineer

Architect

Safety Officer

Quality Control Inspector

Equipment Operator

Electrician

Plumber

Carpenter

Welder

Crane Operator

Quantity Surveyor

Construction Foreman

Site Engineer

MEP Coordinator

Construction Technician

Project Coordinator

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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