The employer can initiate the termination of employees for the following business-related reasons: a. a change of status, merger, consolidation or acquisition/change of company ownership; c. the employer having suffered continuous losses for two years consecutively, as proven by its financial reports for the last two years that have been audited by a public accountant; and. Can an employer transfer employee data freely to other countries? Indonesia does not recognise termination at will. Certain categories of employees are not entitled to receive overtime payment provided that they receive higher salaries. c. The employee performs a role in a trade union. Just click on the icons to get to the download page. How long does the process typically take and what are the sanctions for failing to inform and consult? Yes, it is possible to appeal against a first instance decision. Are there any special rules on non-competes for particular classes of employee? The retirement age is currently 56, rising to 57 from January 1 2019. What is the procedure and typical timescale? An employer is not obliged to have a CLA, but at the same time, no provisions in Labour Law prohibit an employer from taking the initiative to propose a negotiation of a CLA. What do you consider unique to those doing business in your country? An employer should provide evidence as grounds for the redundancy. The demands consist of the following: Reject the RKUHP, the Mineral Mining Bill, the Land Bill, the Correctional Procedure Bill, the Labour Bill, revoke the KPK Law and the Natural Resources Law, pass the RUU PKS and the Domestic Workers Protection Bill The IRC will examine the case and issue a decision related to the termination. The parties should respond within seven days; if they do not, the dispute will automatically go to mediation. 6.5 When will an employer be entitled to dismiss for: 1) reasons related to the individual employee; or 2) business related reasons? Discrimination, harassment & family leave. A case will be examined by three judges, one of whom acts as the head of the panel of judges. Under Law No. The employees have the right to be given an option to continue working for the buyer or to have their employment terminated. What is the position in relation to whistleblowing? This includes equal treatment for a disabled employee. Indonesia has not enacted any specific employment laws protecting employees from race discrimination. Should they reach a settlement, they will sign a Mutual Termination Agreement. Please note that the losing party has the right to submit an appeal to the Supreme Court. The test can be carried out, but only in limited circumstances – for instance, where working under the influence of drugs or alcohol could give rise to health and safety considerations (eg, where employees drive or operate machinery) or serious damage to the employer's business. With the written agreement of the employees (and the union, if the employees are unionised), a five-day, eight hours per day, 40 hours per week basis can be used. Land Dispute Between Foreigner and Bali Traditional Village Resolved, New Ballroom, Events and Meeting Facilities at Mandarin Oriental, Jakarta, Anies Baswedan Inspects Damages Omnibus Law Demo in Jakarta: Respect Citizens’ Rights, Foreign Analysts Predict Impact of the Omnibus Law on Job Creation, Public Complaints on Government Handling of COVID-19 Encouraged, Steps to Process Limited Stay Visa for Family Unification Application. If so, what are the main rights and responsibilities of such bodies? “We will set up a state-owned land bank under the authority of the Agrarian and Spatial Planning Ministry so that it will be possible for the land to facilitate job creation and investment,” Sofyan said, adding that, under the current mechanism, the government could not immediately secure land needed by investors to realize their investments. Certain background checks are in practice subject to the consent of the applicant. Managing the employment relationship in Indonesia, Global employee termination law: Indonesia, Recruitment and wage & hour law in Indonesia, Q&A: Labour & Employment Law in Indonesia, At a glance: termination of employment in Indonesia. Changes to an existing employment agreement are unproblematic if they are in the employee’s favour. The job titles are taken directly from the International Standard Classification of Occupations (ISCO), issued by the International Labor Organization (ILO). However, if an employer’s computer system is used, then it is advisable to regulate this matter in the CR or CLA. Arbitration clauses in employment contracts are not usually enforceable for termination of employment. “Unsuccessful negotiation” means the failure to reach an agreement for the settlement of an industrial relations dispute which is caused by the employer’s unwillingness to negotiate with the employees (or the labour union) or caused by a deadlock in negotiation. 7.3 Do employees have to be provided with financial compensation in return for covenants? 4.1 How long does maternity leave last? Sandiva, Allova Herling Mengko 21 of 1999 and the Labour Law, employees are protected against any discrimination. 6.9 Does an employer have any additional obligations if it is dismissing a number of employees at the same time? Such consents are justified by the freedom of contract principle under the Indonesian Civil Code. A female employee has the right to breastfeed her baby at any time, including during office hours if necessary. Recently, Indonesia slid to 45th place in the 2018 Global Competitiveness ranking, down from 36th in 2016, with the slide being attributed to the local business community’s preference for informal labour. The procedure for termination remains the same whether it is a mass or individual termination (see question 6.6). It is important that all potential employees be subject to the same conditions. Social Security and Healthcare Security, Guide to Jordanian Labour Law for Garment Industry, Employing Persons with Disability Guidelines, Legal Updates No.2, 2014: Building Safety, COVID-19: Garment worker perspectives in Jordan, Better Work Jordan – A mid-year review 2019, Better Work Nicaragua Annual Report 2017: An Industry and Compliance Review, Legal Update #2, 2012 : Minimum Wage Issues in Indonesia, Practical guide: Managing industrial relations in the workplace – Guidelines for middle level management, Better Factories Cambodia Transparency Database Report, 11th Cycle, Better Work Bangladesh Newsletter – September 2019, Better Factories Cambodia Transparency Database Report, 12th Cycle (May – December 2018), Inside Better Work Haiti | Newsletter Issue no. There is no specific legislation governing employee data protection in Indonesia. 46 Year 2015), The Arrangement for Pension Guarantee Program, Indonesia Labor Law Indonesia Labor and Industrial and Knowledge – Employee, Cooperation. In our experience, if a labour union exists, the BCB is rarely utilised. If they do not reach any settlement, then the process is that one of the parties will have to file a lawsuit to the IRC. Tax-related documents in the personnel file must be kept for 10 years. If the employee(s) has reasons to believe that the employer has failed to comply with the mandatory requirements, the employee may refer the dispute to the local office of the MOMT and, ultimately, the IRC. However, all persons have a broad constitutional right to privacy and there is various industry-specific legislation concerning data privacy. g. The date the work agreement starts to take effect and the period during which it is effective. However, if a vacancy needs to be filled immediately, the employer can publish an ad with less than three days’ notice before the vacancy is filled or advertised. a. In practice, the initiative to negotiate a CLA typically comes from the labour union(s). Construction, information technology, mining, and education are among the sectors wide open for expatriates in the new regulations. Law No. They are distinguished according to the length of service, to the nature of the job and to the type of job. If a company has a registered labour union, the labour union can enter into a collective labour agreement with the management of the company. The EIT Law in essence prohibits a breach of privacy of the data owner. Hear directly from leading legal experts this month. 3.8 Are there any specific rules or requirements in relation to whistleblowing/employees who raise concerns about corporate malpractice? 7.1 What types of restrictive covenants are recognised? Law 11/2008 regarding electronic information and transactions (the ITE Law) prohibits the use of information acquired through electronic media containing personal data related to an individual without the consent of such person. MOM will ask both parties whether the dispute should be resolved through non-binding conciliation with private conciliators or mediation with a MOM mediator. Not only does the guide provide answers with respect to the most important issues (more than once, the information available in the guide has enabled my clients to reach favorable settlements), it also provides contact details to lawyers who are able to provide in-depth advice and carry out necessary actions.Kawin Mårtensson - MAQS Law Firm, © 2002-2020 Copyright: ICLG.com | Our Privacy. Many sectors such as construction, banking, engineering, and energy are struggling to find the workers they need due to the skills gap. For a claim above IDR 150 million, a court fee will be charged based on the panel’s discretion. 2.7 Are employees entitled to representation at board level? The Labour Law regulates that a worker is entitled to one and a half months’ (90 days) maternity leave before giving birth and another one and a half months (90 days) after giving birth. Labor Force Participation Rate in Indonesia increased to 69.32 percent in 2019 from 69.20 percent in 2018. 2.1 What are the rules relating to trade union recognition? 3.3 Are there any special rules relating to sexual harassment (such as mandatory training requirements)? Article 153(1) of the Labour Law stipulates that termination of an employment relationship shall not be permitted if it is based on the ideology, religion, political inclination, ethnic group, race, social group, gender, physical condition or marital status of the employee. All employment legislation applies equally to all employees. Who owns IP rights created by employees during the course of their employment? 9.3 How long do employment-related complaints typically take to be decided? 4.2 What rights, including rights to pay and benefits, does a woman have during maternity leave? 7.2. Hiring employees in Indonesia means that you will need to be familiar with Indonesia’s leave entitlements, which may be quite different from your home country. Practice Areas > 6.4 Are there any categories of employees who enjoy special protection against dismissal? The rights of the trade unions, among others, are: a. This Labour Law Guide offers guidance for all stakeholders involved in implementing labour legislation in the corporate environment to create harmonious, ... Guide to Cambodian Labour Law for the Garment Industry – Revised 2019. Overtime is payable at the rate of 1.5 times the hourly wage for the first hour and double the hourly wage thereafter. b. the employer, in writing, after it has registered with the local office of the MOMT, on which the employer has no right to object. On 29 January 2019, Government of the Republic of Indonesia enacted Presidential Regulation Number 7 Year 2019 on Diseases Caused by Occupational Relation. For the planned omnibus law on job creation, the government had identified 1,194 articles in 82 laws that would be amended to accommodate one of President Joko “Jokowi” Widodo’s top priorities: attracting investment in order to create more jobs.
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