Labor Rights in Indonesia
Labor Rights Related to Overtime Work
Employers are obliged to pay their employees overtime fees if the employees are required to work beyond the time limit specified by HR regulations. The fees to be paid are stated by law but may also be modified through an agreement between employer and employee. The maximum duration of overtime work is either three hours a day or 14 hours a week; this total does not include overtime worked during public holidays or weekends.
Labor Rights Related to Leave
Employees in Indonesia are usually granted 12 working days as paid days of holiday after one year of working in a company. There are other forms of leave which are available to employees in Indonesia. Among these are marriage leave, which lasts for three days for the employees’ marriage and two days for their children’s marriage; menstrual leave, which is for female employees and last for the first one to two days of their menstruation cycle; Hajj leave, which is for Muslim employees, can only be used once, and lasts for up to three months so that they may perform the Hajj pilgrimage; and maternity leave, which is for female employees and is three months of paid leave when female employees are expecting. Half of the three months are usually taken prior to the due date and the other half after it. This leave can be extended if a licensed obstetrician or midwife determines that such is necessary.
Labor Rights Related to Salary
When determining the amount of salary that employees in Indonesia are to be paid, employers must consider the position, length of service, educational qualifications, and competency of the employee in question. The amount which an employee is to be paid should also be adjusted the payment in order to match the company’s financial condition as well as the performance level of the employee. In Indonesia, salaries which consist of basic salary and fixed allowance have the corresponding amount of minimal basic salary set at 75% of the sum of the basic salary and fixed allowance.
Employees who do not work must nevertheless be paid if any of the following conditions apply: if they are on sick leave, menstrual leave, marriage leave, childbirth leave, or compassionate leave; if they must carry out government-related duties; if they must fulfill religious obligations; if they are using one or more days of the leave to which they are entitled; if they are performing duties of labor unions; or if they are carrying out company-assigned tasks.
For one religious celebration each year, an employer is obliged to pay a religious holiday allowance to employees. The celebration is decided by the employee’s own religion. The amount of the allowance is to be calculated based on the employee’s length of service. An employee must have completed at least one year of service at any particular company in order to receive an amount of allowance equivalent to one month’s salary.
Laws that Govern Labor Rights in Indonesia
The primary piece of legislation governing employment relationships in Indonesia is Law No. 13 of 2003 on Manpower. This law mentions the rules related to the establishment of an employment relationship, terms and conditions of employment, and termination of employment. Law No. 2 of 2004 on industrial relations dispute settlement is another law with implications regarding labor rights in Indonesia. All laws related to labor rights are accompanied by the implementation of regulations created by either the Minister of Manpower or other government authorities.
It should also be noted that the provision stated in Article 158 of Law No. 13/2003 on termination was declared to be no longer in force according to a decision of the Constitutional Court of Indonesia. This is the case because this provision violates Article 27(1) of the 1945 Indonesian constitution.
Under Circular Letter of Manpower Minister No. SE.13/MEN/SJ-HK/I/2005, which is still in effect, the termination of an employment agreement on the ground of the employee’s grave wrongdoing or major fault, can be carried out if a final and binding verdict to that effect has been obtained from a criminal court judge.
To ensure that all employment laws in Indonesia are followed, the regional offices of the Ministry of Manpower provide supervisors for all matters related to manpower. These supervisors are to ensure compliance with all provisions stated in Indonesia’s employment laws.