Indonesia: Employee rights

Updating author: Syahdan Z. Aziz, SSEK Legal Consultants
Original authors: Lia Alizia and Candace Anastassia Limbong, Makarim & Taira S.

See the legal services provided by the author of International > Indonesia, including any discounts/offers for subscribers.

Summary

• Statutory normal working time is generally 40 hours a week and seven or eight hours a day, and various rules govern overtime in excess of normal hours. (See Hours of work)
• Employees are entitled to a rest break of at least half an hour after working for four consecutive hours, and to a weekly rest period of one day if they work a six-day week and two days if they work a five-day week. (See Rest breaks and rest periods)
• There is no statutory requirement that employees' weekly rest days should fall on any particular days of the week, and no restrictions on Sunday working. (See Sunday work)
• After every 12 months of continuous service with an employer, employees are entitled to a minimum of 12 working days of paid annual leave. (See Holiday and holiday pay)
• Pregnant employees are entitled to three months of maternity leave, during which they receive their full normal pay from the employer. (See Maternity and pregnancy rights)
• There is no statutory entitlement to parental leave during the early years of a child's life. (See Parental leave)
• Male employees are entitled to two days' paid leave in the event that their wife gives birth or has a miscarriage. (See Paternity leave)
• Employees are entitled to a certain amount of paid leave for a variety of personal reasons (such as their marriage or that of their child). (See Other leave)
• Part-time work is permitted but not subject to any specific statutory regulation. (See Part-time workers)
• Employees may, in certain circumstances, be employed on fixed-term contracts. Such employees generally have the same entitlements and protections as permanent employees. (See Fixed-term workers)
• There is no specific statutory regulation on remote working. (See Remote workers)
• Companies are permitted to outsource any work or manpower to any third party on commercial terms that the parties agree to. (See Outsourcing)
• Where employers based outside Indonesia temporarily post non-Indonesian employees to work in Indonesia, these employees are covered by the rules that apply to the employment of all foreign nationals, while the recruitment of Indonesian nationals in Indonesia to work abroad on a temporary basis is specifically regulated by statute. (See Posted workers)
• When the ownership of a business, or part of a business, is transferred, the employment contracts of the employees of the transferred business do not transfer automatically to the new owner. (See Transfers of undertakings)
• Bankruptcy is a valid reason for an employer to dismiss employees. Where an employer is declared bankrupt or liquidated, the payment of wages owed to employees takes priority over other debts. (See Insolvency of employer)
• Some aspects of disciplinary procedures and sanctions are subject to statutory regulation. (See Disciplinary and grievance procedures)
• Unless it is covered by a collective agreement, an employer with 10 or more employees must draw up a set of "company regulations", dealing with the rights and obligations of the employer and employees, employment conditions and disciplinary rules. (See Company regulations)
• Employers are required to submit annual online reports on workforce size and other employment matters to the Ministry of Manpower. (See Mandatory manpower reports)
• Data protection and privacy is subject to little regulation in the employment context. (See Data protection and privacy)