Indonesia’s Primary Labor Laws
There are certain Indonesian labor laws which are not only necessary, but of utmost importance to all who work in Indonesia. For instance, Article 5 of the country’s labor laws specifies that everyone who could possibly be employed is to be offered equal working opportunities without any discrimination or corruption. Article 6 mentions that every worker has the right to receive equal treatment. Job training ought to be offered to all employees to provide direction and to enhance their competence. Indonesian labor laws also state that employers are responsible for improving their workers’ competence through the provision of job training. Equal opportunities for job training should be provided to all workers. Indonesian labor laws also require the employers to give special considerations to those with disabilities by considering the type and severity of the disability as well as the disabled person’s ability to perform the tasks to be assigned.
If an employer terminates a contract due to the sale of a company, Indonesian labor laws require that the employee be paid the statutory termination payment. However, Indonesian laws do not require a termination notice. The employer is still obligated to pay suspended employees their salary.
Official employment contracts in Indonesia are to include information including job title, job description, office address, company name, personal details of the employee, salary and payment method, job requirements, employer’s and employee’s rights and obligations, commencement date, duration of the contract, location and date of contract signature, the employer’s signature, and the employee’s signature.
How Indonesia’s Labor Laws Apply to Foreigners
Every Indonesian employer who hires a foreign worker is to obtain permission in writing from relevant government authorities. The requirement does not apply to the representative offices of foreign countries within Indonesia when they employ foreigners as their diplomatic or consular employees. However, certain individual employers are not allowed to employ foreign workers. Foreign workers employed in Indonesia can only be employed in the country for a certain period of time in specific positions. Government authorities decide on the duration granted and positions open to foreign workers in Indonesia. Once the working period which was initially specified has expired and cannot be renewed, the now-vacant position can be filled by another foreign citizen. The employers of foreign employees must have a plan for their foreign employees according to the laws enforced by government authorities. Some of the points that should be addressed by an employer when bringing foreign workers into the country include the reasons why the services of the foreign citizens are required, why the services to be provided by the foreign workers are necessary in Indonesia, the position to be taken by the foreign worker, and the duration of the foreign workers’ expected employment in the position to be taken. The employers also ought to provide evidence that an Indonesian citizen has been hired as an assistant partner to each foreign worker.
Employers of foreign workers are obliged to obey the existing rules and standards regarding the employment of foreign workers. Indonesian employers who hire foreign workers are expected to appoint Indonesian workers to work with the foreign workers so that these foreign employees can transmit their newly acquired knowledge and technological skills to their local counterparts. However, this does not apply to foreign workers who occupy managerial or directorial positions. A foreign worker working in Indonesia is also not allowed to hold any position dealing with personnel or the employment of any other employees.
Rights of Foreign Workers in Indonesia
Foreign workers have certain rights according to the labor laws of Indonesia. For example, it is required that the foreign workers be paid adequate compensation by their employers. Employers are required to repatriate their foreign employees back to their countries of origin once their respective contracts expire. Foreign workers also have the right to be trained by their employers so as to be equipped with skills that match the current job requirements and expectations. Labor laws require that employers give their female foreign employees 180 days of maternity leave; 90 days before delivery and another 90 days after giving birth. The Indonesian labor law known as Act No. 9 of 1992 specifies information related to immigration and passport regulation as they relate to foreign workers.
Indonesian labor laws require that all workers should work for seven hours a day, which will add up to 42 hours a week when working six days a week. Some might also choose to work for eight hours over five working days a week. There is also to be a rest period of less than 30 minutes after every four hours of continuous work.
If an employee works for extra hours, they ought to receive payment for overtime worked. However, some employees in certain positions might not be limited by working hours and are not usually entitled to overtime payment. Despite this fact, such employees are in most instances paid more than are most other workers. Overtime payment is calculated as such: the first overtime hour is worth one-and-a-half times the overtime pay rate, and each following overtime hour is worth twice the overtime pay rate.
If an overtime payment is to be calculated on an employee who works on a public holiday, the first eight hours are worth twice the overtime pay rate; the ninth hour, three times the overtime pay rate; and any following hours, four times the overtime pay rate.
Authorities Enforcing Labor Laws Regarding Foreigners in Indonesia
In Indonesia, there are several government agencies who work to ensure that the labor laws which regard foreigners are up to date and followed by employers and employees alike across the country. These authorities ensure that none of the parties exploit the other. The Ministry of Manpower, the Directorate General of Immigration, and labor courts are among the key authorities that ensuring that the labor laws are followed.