Whether you incorporated a company in Indonesia, or anywhere else in the world, you are more likely than not to hire employees to run your business. Before hiring these employees, it is important to understand the employment laws.
When it comes to the employment laws in Indonesia, the basic terms of employment and laws still stand universally. However, there are certain differences that you should take note of if you are a foreigner who has an Indonesian company. This is crucial as if you violate the Indonesian employment laws, there are severe penalties that you will incur.
Employment laws are a set of rules that govern employees’ rights and employers’ duties. They cover a wide range of topics, including pension plans and retirement, job safety, and workplace discrimination. They control the employer-employee relationship as well as the rights and responsibilities of employees.
It is made up of a variety of different legislations which cover everything that has to do with the workplace. In the relationship between a company and their employees, employment lawyers play a critical role. This relationship begins with the hiring of an employee and continues through a full cycle that can conclude in the voluntary or forced termination of employment.
Beyond that, employment laws include a wide range of matters, which are, among other things: