(a) Contract provision.--A contract executed by a borough or an officer of a borough, which involves the construction or doing of work involving the employment of labor, must contain a provision that the contractor shall accept, insofar as the work covered by the contract is concerned, the provisions of the act of June 2, 1915 (P.L. 736, No. 338),¹ known as the Workers' Compensation Act, and the supplements and amendments to the Workers' Compensation Act, and that the contractor will insure his liability under the act and will file with the borough with which the contract is made a certificate of insurance providing evidence of the coverage or file with the borough with which the contract is made a certificate of exemption from insurance from the Bureau of Workers' Compensation of the Department of Labor and Industry. The certificate of exemption from insurance may be issued on the basis of either individual self-insurance or group self-insurance. Additionally, a contractor shall file with the borough with which the contract is made any applications to be excepted by the provisions of the Workers' Compensation Act in respect to certain employees on religious grounds if the applications have been accepted by the Department of Labor and Industry.

(b) Violation.--A contract executed in violation of subsection (a) is null and void.