The Agreement of Labor Service Cooperation in Bayah 10,000TPD
Cement Plant project
The parties hereto:
Party A:PT. Sinoma Engineering Indonesia(hereinafter referred to as the “Employer” )
Party B:PT. Mutiara Indah Anugrah(hereinafter referred to as the “Service Company”)
Whereas:Employer is undertaking a construction project named Indonesia bayah 10,000 TPD clinker cement production line project, it entrusts Service Company to hire some qualified and healthy local manpower to support Chinese technicians during construction. In accordance with current Indonesia laws, regulations and local employment regulations and in order to manage and use local labors properly, this agreement is hereby entered into by both parties on the basis of equality, free will, mutual consent, and mutual benefit. The terms and conditions thereof are set out as follows:
1. The rights and obligations of both parties
1.1 The rights and obligations of Employer
1.1.1 Employer shall give Service Company manpower demand planning, professions and personnel requirements, and shall advise Service Company one week ahead if there are any changes in the number of employment.
1.1.2 Employer shall provide labors dispatched by Service Company with labor protection appliances, and machines and tools for construction.
1.1.3 Employer shall be responsible for checking and confirming the work attendance of labors from Service Company, and shall verify the labor quantity on the first day of next month according to the working days of last month, and pay the relevant expenses to Service Company against the reception of equivalent VAT-included invoice (called “ppn invoice”) from Service Company.
1.1.4 Employer shall undertake the overtime salary and relevant Indonesia welfare expenses for Service Company’s labors.
1.1.5 Employer shall pay at one time the labors Rp 2,500,000 as travel expenses of round trip, if these labors hereof are from other islands and work in bayah project for 8(eight) months; in contrast, Service Company shall undertake the relevant travel expense if the labors work in project less than a year.
1.1.6 Employer shall undertake 10.89% of total labor salary (will be calculated as “Payment A”) as social insurance (will be calculated as “Payment B”) for labors according to Indonesia law. (a. industrial injury compensation 0.89%; b. death compensation 0.3%; c. endowment insurance subsidy 3.7%; d. health subsidy 6%)
1.1.7 Employer shall pay to Service Company 12% of total labor salary(Payment
A) and social insurance expense(Payment B) as administration expenses (Payment C; C=12%(A+B));The salary and social insurance of administrative staffs of Service Company will be undertaken by Service Company itself.
1.1.8 Employer shall provide Service Company with such accommodation and dining place as is flat and unblocked; and Employer will pay to Service Company Rp20,000(twenty thousand Rupiah) per day for each labor from other islands, Rp10,000(ten thousand Rupiah) per day for each local labor.
1.1.9 Employer has rights to dismiss or replace the illegal, unqualified and incompetent labor; Service Company shall obey unconditionally and cope with aftermath caused hereafter.
1.2. The responsibilities of Service Company
1.2.1Service Company shall comply with Employers’ requirement to recruit, train and manage relevant labors.
1.2.2 Service Company shall register the hired labors in roster, which shall include labors’ name, birth date, ID number, native place,birthplace, profession, educational background, family address, and training information and so on.
1.2.3 Service Company shall sign labor contract with hired labors in accordance with Indonesia law, and submit the copy to Employer for documentation as a record.
1.2.4 Service Company shall undertake the expenses on meal, living water and electricity for hired labors, and shall bear the cost of injury, illness, physical disability, death, medical treatment and other relevant expenses that are caused during working period; Service Company shall also deal with the aroused results