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Construction Employment Contract Template for Indonesia

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Key Requirements PROMPT example:

Construction Employment Contract

"I need a Construction Employment Contract for hiring a Senior Site Supervisor in Jakarta for our new commercial building project, starting March 2025, with specific provisions for managing multiple subcontractors and implementing enhanced safety protocols for high-rise construction."

Document background
A Construction Employment Contract serves as the primary legal document governing the employment relationship between construction companies and their workers in Indonesia. This document is essential when hiring any construction worker, from laborers to skilled technicians and site managers, and must comply with both Indonesian general employment law (Law No. 13 of 2003) and construction-specific regulations (Law No. 2 of 2017). The contract includes mandatory employment terms, construction safety protocols, BPJS participation requirements, and specific provisions related to construction work such as site mobility, equipment usage, and project-based assignments. It's particularly important for ensuring clear terms of employment while maintaining compliance with Indonesia's strict labor regulations and construction industry standards.
Suggested Sections

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

2. Background: Context of the employment relationship, including the nature of the construction project(s) and the general scope of work

3. Definitions: Key terms used throughout the contract, including technical construction terms and employment-related definitions

4. Term of Employment: Duration of employment, whether fixed-term (PKWT) or permanent (PKWTT), including start date and end date if applicable

5. Position and Duties: Specific role, responsibilities, and reporting relationships within the construction project

6. Work Location: Primary work site(s) and provisions for potential relocations to different construction sites

7. Working Hours and Overtime: Standard working hours, shift patterns, and overtime arrangements in accordance with Indonesian labor law

8. Compensation and Benefits: Base salary, allowances, bonuses, and mandatory benefits including BPJS participation

9. Leave Entitlements: Annual leave, sick leave, religious holiday leave, and other statutory leave rights

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

11. Confidentiality: Protection of company information, project details, and trade secrets

12. Termination: Grounds and procedures for contract termination, notice periods, and severance calculations

13. Dispute Resolution: Procedures for resolving employment-related disputes in accordance with Indonesian law

14. Governing Law: Confirmation of Indonesian law as governing law and relevant jurisdictional matters

Optional Sections

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

2. Tools and Equipment: Include when the employer provides specific tools or when workers must bring their own

3. Performance Bonuses: Include when offering project completion bonuses or performance-based incentives

4. Training and Certification: Required when specific training or certification requirements exist for the role

5. Non-Competition: Include for senior technical roles or management positions

6. Housing Allowance: Include when providing accommodation or housing allowance for remote site work

7. Foreign Worker Provisions: Required when employing non-Indonesian workers, including visa and permit requirements

8. Project-Specific Terms: Include when employment is tied to specific construction projects

Suggested Schedules

1. Schedule 1 - Job Description: Detailed description of roles, responsibilities, and performance expectations

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

3. Schedule 3 - Safety Protocols: Specific safety requirements, procedures, and PPE specifications

4. Schedule 4 - Project Sites: List of potential work locations and site-specific requirements

5. Schedule 5 - Tools and Equipment List: Detailed list of company-provided tools or required personal tools

6. Appendix A - Company Policies: Relevant company policies including safety, conduct, and operational procedures

7. Appendix B - Training Requirements: Required certifications, training programs, and renewal schedules

8. Appendix C - Leave Application Procedures: Detailed procedures for requesting and documenting various types of leave

Authors

Alex Denne

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

Relevant legal definitions

















































Clauses


































Relevant Industries

Construction

Civil Engineering

Infrastructure Development

Real Estate Development

Industrial Construction

Commercial Construction

Residential Construction

Mining Construction

Energy Infrastructure

Transportation Infrastructure

Relevant Teams

Human Resources

Legal

Operations

Project Management

Health and Safety

Quality Control

Site Operations

Engineering

Construction Management

Compliance

Risk Management

Labor Relations

Relevant Roles

Construction Worker

Site Supervisor

Project Manager

Construction Engineer

Safety Officer

Quality Control Inspector

Heavy Equipment Operator

Skilled Craftsman

Construction Foreman

Civil Engineer

Structural Engineer

Construction Technician

Site Manager

Construction Laborer

Electrical Technician

Plumbing Specialist

Carpenter

Welder

Crane Operator

Quantity Surveyor

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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