Law of the Republic of Indonesia Number 13 of 2003 on Manpower, as Amended by Law Number 6 of 2023 on the Stipulation of Government Regulation in Lieu of Law Number 2 of 2022 on Job Creation as Law (Law 6/2023)
STATE GAZETTE OF THE REPUBLIC OF INDONESIA
Year 2003 Number 39 juncto, Year 2023 Number 41
LABOR. Employment. Employment Agreement. Employment Relations. Supervision. Termination of Employment. Labor Institutions. Wages.
Central Government. Regional Government.
LAW OF THE REPUBLIC OF INDONESIA NUMBER 13 OF 2003 CONCERNING MANPOWER
Considering:
- That Indonesia’s national development shall be implemented within the framework of building Indonesians as fully-integrated human beings and of building the whole Indonesian society in order to realize a society in which there shall be welfare, justice and prosperity based on equity both materially and spiritually with the Pancasila and the 1945 Constitution at its foundation.
- That in the implementation of national development, workers have a very important role and position as actors of development as well as the goal of development it self;
- That in accordance with the role and position of workers, manpower development is required to enhance the quality of workers as well as their role and participation in national development and in improving protection for workers and their families in respect to human dignity and values;
- That protection of workers is intended to safeguard the fundamental rights of workers and to secure the implementation of equal opportunity and equal treatment without discrimination on whatever basis in order to realize the welfare of workers/ labourers and their family by continuing to observe the development of progress made by the world of business;
- That several acts on manpower are considered no longer relevant to the need and demand of manpower development and hence, need to be abolished and/or revoked;
- That based on the considerations as mentioned under points a, b, c, d and e, it is necessary to establish an Act concerning Manpower.
Explanatory Note :
Manpower development as an integral part of the national development based on the Pancasila and the 1945 Constitution shall be carried out within the framework of building up Indonesian as fully integrated human beings and the overall, integrated development of Indonesia’s society in order to enhance the dignity, values and status of manpower and to create a prosperous, just and well-off society in which material and spiritual benefits are evenly distributed.
<br>Manpower development must be regulated in such a way so as to fulfill the rights of and to provide basic protection to manpower and workers/ labourers and at the same time to be able to create conducive conditions for the development of the world of business.
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Manpower development has many dimensions and interconnectivity. The interconnectivity is not only related to the interests of the workforce during, prior to and af... >> More
In view of:
Article 5 Subsection (1), Article 20 Subsection (2), Article 27 Subsection (2), Article 28 and Article 33 Subsection (1) of the 1945 Constitution
By the joint approval between
THE HOUSE OF REPRESENTATIVES OF THE REPUBLIC OF INDONESIA
AND
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
DECIDE :
THE HOUSE OF REPRESENTATIVES OF THE REPUBLIC OF INDONESIA
AND
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
DECIDE :
To stipulate:
ACT CONCERNING MANPOWER AFFAIRS
CHAPTER I
GENERAL PROVISIONS
Article 1
Under this act, the following definitions shall apply :
- Manpower affairs are referring to every matter that is related to people who are needed or available for a job before, during and after their employment.
- Manpower is every individual or person who is able to work in order to produce goods and/ or services either to fulfill his or her own needs or to fulfill the needs of the society.
- A worker/labourer are any person who works and receives wages or other forms of remuneration.
- An employer is individual, entrepreneur, legal entities, or other entity that employ manpower by paying them wages or other forms of remuneration.
- An entrepreneur is: An individual, a partnership or a legal entity that operates a self-owned enterprise; An individual, a partnership or a legal entity that independently operates a non-self-owned enterprise; An individual, a partnership or a legal entity located in Indonesia and representing an enterprise as mentioned under point a and point b that is domiciled outside the territory of Indonesia.
- An enterprise is:
- Every form of business, which is either a legal entity or not, which is owned by an individual, a partnership or a legal entity that is either privately owned or state owned, which employs workers/ labourers by paying them wages or other forms of remuneration;
- Social undertakings and other undertakings with officials in charge and which employ people by paying the wages or other forms of remuneration.
- Manpower planning is the process of making a manpower plan systematically that is used as a basis and reference for formulating the policy, strategy and implementation of a sustainable manpower development program.
- Manpower information is a group, a set or series and an analysis of data in the form of processed numbers, texts and documents that have specific meanings, values and messages concerning labour.
- Job training is the whole activities of providing workers or potential workers with, and paving the way for them to acquire, enhance and develop job competence, productivity, discipline, work attitude and ethics until a desired level of skills and expertise that match the grade and qualifications required for a position or a job is reached.
- Job competence or competency is the capability of each individual that covers aspects of knowledge, skills and work attitude which accords with prescribed standards.
- Apprenticeship is a part of a job training system that integrates training at a training institute with working directly under the tutelage and supervision of an instructor or a more experienced worker/ labourer in the process of producing goods and/ or services in an enterprise in order to master a certain skill or trade.
- Job placement service is an activity aimed at matching up manpower with employers so that manpower get jobs that are suitable to their talents, interest and capability and employers get the manpower they need.
- Foreign worker is a visa holder of foreign citizenship with the intention to work in Indonesia’s territory.
- Work agreement is an agreement made between a worker/ labourer and an entrepreneur or an employer that specifies work requirements, rights and obligations of the parties.
- An employment relation is a relationship between an entrepreneur and a worker/ labourer based on a work agreement, which contains the elements of job, wages and work order.
- Industrial relations is a system of relations that is formed among actors in the process of producing goods and/or services, which consist of employers, workers/ labourers and the government, which is based on the values of the Pancasila and the 1945 Constitution of the Republic of Indonesia.
- A trade union/labour union is an organization that is formed from, by and for workers/labourers either within an enterprise or outside of an enterprise, which is free, open, independent, democratic, and responsible in order to strive for, defend and protect the rights and interests of the worker/ labourer and increase the welfare of the worker/ labourer and their families.
- A bipartite cooperation institution is a communication and consultation forum on matters pertaining to industrial relations in an enterprise whose members consist of entrepreneurs and trade/labour unions that have been registered at a government agency responsible for manpower affairs or workers/labourers’ representatives.
- A tripartite cooperation institute is a communication, consultation and deliberation forum on manpower issues (problems) whose members consist of representatives from entrepreneurs’ organizations, workers/labourers’ organizations and the government.
- Company regulations is a set of rules and regulations made in writing by an entrepreneur that specifies work requirements and the enterprise’s discipline and rule of conduct.
- A collective labour agreement is an agreement resulted from negotiations between a trade/labour union or several trade/ labour unions registered at a government agency responsible for manpower affairs and an entrepreneur or several entrepreneurs or an association of entrepreneurs that specifies work requirements, rights and obligations of the parties.
- An industrial relations dispute is a difference of opinion that results in a conflict between an entrepreneur or an association of entrepreneurs and a worker/labourer or a trade/labour union because of dispute over rights, interests and termination of employment and dispute between a trade/labour union and another trade/labour union in the same enterprise.
- A strike is a collective action of workers/labourers, which is planned and carried out by a trade/labour union to stop or slower work.
- A lockout is the entrepreneur’s action of refusing the worker/labourer in whole or in part to perform work.
- The termination of an employment relationship is termination of employment relationship because of a certain thing that results in the coming of an end of the rights and obligations of the worker/ labourer and the entrepreneur.
- A child is every person who is under 18 (eighteen) years old.
- Day is a period of time between 6am to 6pm.
- One (1) day is a period of time of 24 (twenty four) hours.
- A week is a period of 7 (seven) days.
- A wage is the right of the worker/ labourer that is received and expressed in the form of money as remuneration from the entrepreneur or the employer to workers/ labourer, whose amount is determined and paid according to a work agreement, consensus, or laws and regulations, including allowances for the worker/ labourer and their family for a job and or service that has been performed or will be performed.
- Workers/ labourers’ welfare is a fulfillment of physical and spiritual needs and/or necessities [of the worker either within or outside of employment relationships that may directly or indirectly enhance work productivity in a working environment that is safe and healthy.
- Labour inspection is the activity of controlling and enforcing the implementation of laws and regulations in the field of manpower.
- Minister is the minister responsible for manpower affairs.
Explanatory Note :
Sufficiently clear.CHAPTER II
STATUTORY BASIC, BASIC PRINCIPLES
AND OBJECTIVE
AND OBJECTIVE
Article 2
Manpower development shall have the Pancasila and the 1945 Constitution as its statutory basis.
Explanatory Note :
The National Development shall be carried out in the framework of the whole, undivided development of Indonesian as a human being. Therefore, manpower development shall be carried out with the aim to develop Indonesian and the Indonesian society as a whole into a prosperous, just, and well-off society in which material and spiritual benefits are evenly shared.Article 3
Manpower development shall be carried out based on the basic principle of integration through functional, cross- sector, central, and provincial/municipal coordination.
Explanatory Note :
The fundamental principle of manpower development basically accords with the fundamental principle of national development, in particular with the fundamental principle of democracy of the Pancasila and the fundamental principles of social justice and equity. Manpower development has many dimensions and interconnectivity with many stakeholders such as the government, the entrepreneur and the worker/ labourer. Therefore, manpower development shall be carried out in an integrated manner and in the form of a mutually supportive cooperation.Article 4
Manpower development aims at :
a. Empowering and making efficient use of manpower optimally and humanely;
Explanatory Note :
Point a The empowerment and the effective employment of manpower and the development of their potentials shall go hand in hand as an integrated activity aimed at providing as many job opportunities as possible to Indonesian manpower. Through the empowerment and their employment/ potential development, Indonesian manpower shall be able to participate optimally in the national development but with keeping on upholding their values as human beings.
b. Creating equal opportunity and providing manpower (supply of manpower) that suits the need of national and provincial/ municipal developments;
Explanatory Note :
Point b All efforts must be made to ensure equal distribution of job opportunities throughout all the territory of the Unitary State of the Republic of Indonesia as a unified job markets by providing equal opportunities to all Indonesian manpower to find job that is in line with their talents, interest and capabilities. All efforts must also be made to ensure equal distribution of job placement in order to fulfill the needs in all sectors and regions.
c. Providing protection to manpower for the realization of welfare; and
Explanatory Note :
Point c Sufficiently clear.
d. Improving the welfare of manpower and their family.
Explanatory Note :
Point d Sufficiently clear.CHAPTER III
EQUAL OPPUTUNIES
Article 5
Any manpower shall have the same opportunity to get a job without discrimination.
Explanatory Note :
Every person who is available for a job shall have the same right and opportunity to find a decent job and to earn a decent living without being discriminated against on grounds of sex, ethnicity, race, religion, political orientation, in accordance with the person’s interest and capability, including the provision of equal treatment to the disabled.Article 6
Every worker/ labourer has the right to receive equal treatment without discrimination from their employer.
Explanatory Note :
Entrepreneurs are under an obligation to give the worker/ labourer equal rights and responsibilities without discrimination based on sex, ethnicity, race, religion, skin color, and political orientation.CHAPTER IV
MANPOWER PLANNING AND
MANPOWER INFORMATION
Article 7
(1)
For the sake of manpower development, the government shall establish manpower policy and develop manpower planning.
Explanatory Note :
Subsection (1) Manpower planning that is formulated and established by the government shall be implemented through sector-based, regional and national manpower planning approaches.(2)
Manpower planning shall include:
a. Macro manpower planning; and
Explanatory Note :
Subsection (2) Point a Macro manpower planning is a process of systematically formulating manpower planning, which makes effective, productive and optimal use of workforce in order to support economic or social developments at national, regional or sector-based level. In this way as many as possible job opportunities can be made available while job productivity and workers/ labourers’ welfare can also be increased.
b. Micro manpower planning.
Explanatory Note :
Point b Micro manpower planning is a process of systematically formulating manpower planning within an agency – either a government agency or a private agency – in order to enhance the effective, productive and optimal use of workforce to support the achievement of high performance at the agency or enterprise concerned.(3)
In formulating policies, strategies, and implementation of sustainable manpower development program, the government must use the manpower planning as mentioned under subsection (1) as guidelines.
Explanatory Note :
Subsection (3) Sufficiently clear.Article 8
(1)
Manpower planning shall be developed on the basis of manpower information, which, among others, includes information concerning:
- Population and manpower;
- Employment opportunity;
- Job training including job competence;
- Workers’ productivity;
- Industrial relations;
- Working environment condition;
- Wages system and workers’ welfare; and
- Social security for the employed.
Explanatory Note :
Subsection (1) Manpower information is collected and processed according to the objectives of the formulation of national manpower planning and provincial or district or city manpower planning.(2)
The manpower information as mentioned under subsection (1) shall be obtained from all related parties, including from government and private agencies.
Explanatory Note :
Subsection (2) For the sake of manpower development, the participation of the private sector is expected to provide information concerning manpower. The term ―private sector‖ shall include enterprises/ companies, universities, and non- government organizations at central level, provincial or district/city levels.(3)
Provisions concerning procedures for acquiring manpower information as well as procedures for the formulation and implementation of manpower planning as mentioned under subsection (1) shall be regulated with a Government Regulation.
Explanatory Note :
Subsection (3) Sufficiently clear.CHAPTER V
JOB TRAINING
Article 9
Job training is provided and directed to instill, enhance, and develop job competence in order to improve ability, productivity and welfare
Explanatory Note :
Welfare improvement as mentioned under this Article shall mean the welfare gained by manpower through the fulfillment of work competence acquired by means of job training.Article 10
(1)
Job training shall be carried out by taking into account the need of the job market and the need of the business community, either within or outside the scope of employment relations.
Explanatory Note :
Subsection (1) Sufficiently clear.(2)
Job training shall be provided on the basis of training programs that refer to job competence standards.
Explanatory Note :
Subsection (2) Work competence standards shall be established by Minister by including the sectors concerned.(3)
Job training may be administered step by step.
Explanatory Note :
Subsection (3) Job training commonly comes in three levels: elementary level, intermediate level and advanced level.(4)
Provisions concerning procedures for establishing job competence standards as mentioned under subsection (2) shall be regulated with a Ministerial Decision.
Explanatory Note :
Subsection (4) Sufficiently clear.Article 11
Manpower has the right to acquire and/or improve and/ or develop job competence that is suitable to their talents, interest and capability through job training.
Explanatory Note :
Sufficiently clear.Article 12
(1)
Entrepreneurs are responsible for improving and or developing their workers’ competence through job training.
Explanatory Note :
Subsection (1) Users of skilled manpower are entrepreneurs. Therefore, entrepreneurs are responsible for organizing job training in order to improve their workers’ competence.(2)
Entrepreneurs who have meet the requirements stipulated with a Ministerial Decision are under an obligation to improve and or develop the competence of their workers as mentioned under subsection (1).
Explanatory Note :
Subsection (2) Entrepreneurs are obliged to enhance and/or develop the competence of their workers/ labourers because it is the enterprise that will benefit from the enhancement of their workers/ labourers’ job competence.(3)
Every worker/ labourer shall have equal opportunity to take part in a job training that is relevant to their field of duty.
Explanatory Note :
Subsection (3) The administration of job training shall be adjusted to the need of and the available opportunity at the enterprise so that enterprise activities are not disrupted.Article 13
(1)
Job training is conducted by:
a. government-run Job Training Institutions;
b. private job-training institute; or
c. company-based Job Training Institutions.
a. government-run Job Training Institutions;
b. private job-training institute; or
c. company-based Job Training Institutions.
Explanatory Note :
Subsection (1) Point a What is meant by “government-run Job Training Institutions” shall be Job Training Institutions owned by the government. Point b What is meant by “privately-owned Job Training Institutions” shall be institutions owned by private entities. Point c What is meant by “company-based Job Training Institutions” shall be training units established within companies.(2)
Job Training may be conducted at training facilities or at the workplace.
Explanatory Note :
Subsection (2) Sufficiently clear.(3)
The government-run Job Training Institutions as referred to in subsection (1) point a may cooperate with private entities in conducting Job Training.
Explanatory Note :
Subsection (3) Sufficiently clear.(4)
The government-run Job Training Institutions as referred to in subsection (1) point a and the company-based Job Training Institutions as referred to in subsection (1) point c shall register their activities with the agency in charge of manpower affairs at the regency/municipality level.
Explanatory Note :
Subsection (4) Sufficiently clear.Article 14
(1)
A private job-training institute as referred to in Article 13 subsection (1) point b shall obtain a Business License issued by the Regency/Municipality Government.
(2)
In the case of privately-owned Job Training Institutions with foreign capital participation, the Business License as referred to in subsection (1) shall be issued by the Central Government.
(3)
The Business Licenses as referred to in subsections (1) and (2) shall comply with the norms, standards, procedures, and criteria stipulated by the Central Government.
Explanatory Note :
Sufficiently clear.Article 15
Job training providers are under an obligation to make sure that the following requirements are met:
a. The availability of trainers;
b. The availability of a curriculum that is suitable to the level of job training to be given;
c. The availability of structures and infrastructure for job training; and
d. The availability of fund for the perpetuation of the activity of providing job training.
Explanatory Note :
Sufficiently clear.Article 16
(1)
Licensed private job training institutes and registered government-sponsored job training institutes may obtain accreditation from accrediting agencies.
(2)
The accrediting agencies as mentioned under subsection (1) shall be independent, consisting of community and government constituents, and shall be established with a Ministerial Decision.
(3)
The organization and procedures of work of the accrediting agencies as mentioned under subsection (2) shall be regulated with a Ministerial Decision.
Explanatory Note :
Sufficiently clear.Article 17
(1)
The government agency responsible for labour/ manpower affairs in a district/ city may temporarily terminate activities associated with the organization and administration of a job training in the district/ city if it turns out that the implementation of the job training:
a. Is not in accordance with the job training directions as mentioned under Article 9; and/or
b. Does not fulfill the requirements as mentioned under Article 15.
a. Is not in accordance with the job training directions as mentioned under Article 9; and/or
b. Does not fulfill the requirements as mentioned under Article 15.
(2)
The temporary termination of activities associated with the organization and administration of job training as mentioned under subsection (1) shall be accompanied with the reasons for the temporary termination and suggestions for corrective actions and shall apply for no longer than 6 (six) months.
(3)
The temporary termination of the implementation of the administration of job training only applies to training programs that do not fulfill the requirements as specified under Article 9 and Article 15.
(4)
Job training providers who, within a period of 6 months, do not fulfill and complete the suggested corrective actions as mentioned under subsection (2) shall be subjected to a sanction that rules the termination of their training programs.
(5)
Job training providers who do not obey and continue to carry out the training programs that have been ordered for termination as mentioned under subsection (4) shall be subjected to a sanction that revokes their licenses and cancels their registrations as job training providers.
(6)
Provisions concerning procedures for temporary termination, termination, revocation of license, and cancellation of registration shall be regulated with a
Ministerial Decision.
Explanatory Note :
Sufficiently clear.Article 18
(1)
Manpower shall be entitled to receive job competence recognition after participating in job training provided by government job training institutes, private job training institutes, or after participating in job training in the workplace.
Explanatory Note :
Subsection (1) Sufficiently clear.(2)
The job competence recognition as mentioned under subsection (1) shall be made through job competence certification.
Explanatory Note :
Subsection (2) Certification of competence is a process of issuing competence-attesting certificates in a systematic and objective way through competence tests that use national as well as international competence standards as reference.(3)
Manpower with experience in the job may, despite their experience, take part in the job training as mentioned under subsection (1) in order to obtain job competence certification as mentioned under subsection (2).
Explanatory Note :
Subsection (3) Sufficiently clear.(4)
To provide job competence certification, independent profession-based certification agencies shall be established.
Explanatory Note :
Subsection (4) Sufficiently clear.(5)
Provisions concerning the procedures for the establishment of certification agencies as mentioned under subsection (4) shall be regulated with a Presidential Decision.
Explanatory Note :
Subsection (5) Sufficiently clear.Article 19
The provision of job training to people with disability who are available for a job shall take into account the type and severity of the disability and their ability.
Explanatory Note :
Sufficiently clear.Article 20
(1)
To support the improvement of job training for the sake of manpower development, a national job-training system that serves as a reference for the administration of job training in all fields of work and/or all sectors shall be developed.
Explanatory Note :
Subsection (1) The national job training system as mentioned under this subsection is interconnectivity and integration of various job training elements/ aspects which include, among others, participants, costs, structures and infrastructures, instructors, training programs and methods and graduates. With the existence of the national job training system, all elements and all resources of national job training found in government agencies, private agencies and companies can be optimally used.(2)
Provisions concerning the form, mechanism and institutional arrangements of the national job-training system as mentioned under subsection (1) shall be regulated with a Government Regulation.
Explanatory Note :
Subsection (2) Sufficiently clear.Article 21
Job training may be administered by means of
apprenticeship systems.
Explanatory Note :
Sufficiently clear.Article 22
(1)
Apprenticeship shall on be carried out based an apprenticeship agreement made in writing between the apprenticeship participant and the entrepreneur.
Explanatory Note :
Subsection (1) Sufficiently clear.(2)
The apprenticeship agreement as mentioned under subsection (1) shall at least have stipulations explaining the rights and obligations of both the participant and the entrepreneur as well as the period of apprenticeship.
Explanatory Note :
Subsection (2) The rights of the apprentice include the right to receive pocket money and or transport money, the right to receive social security for employees, certificate upon completion of apprenticeship if they successfully complete the apprenticeship program. The rights of the entrepreneur, on the other hand, include the right to possess any products/services resulted from the apprenticeship activities, the right to recruit and install successful apprentices as workers/ labourers if they meet the entrepreneur’s criteria. The obligations of the apprentice include the obligation to comply with the apprenticeship agreement, to follow apprenticeship programs and procedures, and to comply with the enterprise’s discipline and rule of conduct. The obligations of the entrepreneur, on the other hand, include the obligation to provide pocket money and/or transport money to the apprentice, training facilities and infrastructures as well as occupational safety and health equipment. The period of apprenticeship varies, subject to the length of time needed to achieve the competence standards that have been set/ established in the apprenticeship training programs.(3)
Any apprenticeship administered without an apprenticeship agreement as mentioned under subsection (2) shall be declared illegal and as a consequence, the status of the apprenticeship’s participants shall change to be the workers/ labourers of the enterprise.
Explanatory Note :
Subsection (3) An apprentice who has the status of a worker/ labourer in the enterprise that employs him or her as apprentice shall have the right over everything that is regulated in the company regulations or the collective labour agreement.Article 23
Manpower that has completed an apprenticeship program is entitled to get their job competence and qualifications recognized by enterprises or by certification agency.
Explanatory Note :
Certification may be performed by a certification agency established by and or accredited by the government if the program is general, or by the enterprise if the program is specific.Article 24
Apprenticeship can take place within the enterprise or at the place where job training is organized, or at another enterprise, within or outside of the Indonesia’s territory.
Explanatory Note :
Sufficiently clear.Article 25
(1)
The apprenticeship which is conducted outside of Indonesia’s territory must obtain a license from Minister or the appointed official.
(2)
In order to obtain the license as mentioned under subsection (1), the organizer of the apprenticeship must be in the form of an Indonesian legal entity in accordance with the prevailing laws and regulations.
(3)
Provisions concerning the procedures for obtaining license for apprenticeship organized outside of Indonesia’s territory as mentioned under subsection (1) and subsection (2) shall be regulated with a Ministerial Decision.
Explanatory Note :
Sufficiently clear.Article 26
(1)
Any apprenticeship organized outside of the Indonesia’s territory must take into account:
a. The dignity and standing of Indonesians as a nation;
b. Mastery of a higher level of competence; and
c. Protection and welfare of apprenticeship participants, including their rights to perform religious obligations.
(2)
The Minister or appointed official may order the termination of any apprenticeship taking place outside of the Indonesia’s territory if it turns out that its organization is not pursuant to subsection (1).
Explanatory Note :
Sufficiently clear.Article 27
(1)
Minister may require qualified enterprises to organize apprenticeship programs.
Explanatory Note :
Subsection (1) Sufficiently clear.(2)
In determining the requirements for organizing apprenticeship programs as mentioned under subsection (1), Minister must take into account the interests of the enterprise, the society and the State.
Explanatory Note :
Subsection (2) The phrase the interests of the enterprise under this subsection means to ensure the availability of skilled and expert manpower at certain competence levels such specialist welders for performing welding underwater. The phrase the interests of the society shall refer to, for instance, the opening up of opportunities for people to find a job in a specific industry such as plant cultivation technology with tissue culture. The phrase the interests of the State shall refer to, for instance, efforts to save the country’s foreign exchange reserves through apprenticeship programs aimed at enabling the apprentice to manufacture modern agricultural machines and tools.Article 28
(1)
In order to provide recommendation and consideration in the establishment of policies and coordination of job training and apprenticeship activities, a national job training coordinator institute shall be established.
(2)
The formation, membership and procedures of work of the national job training coordinator institute as mentioned under subsection (1) shall be regulated with a Presidential Decision.
Explanatory Note :
Sufficiently clear.Article 29
(1)
The Central Government and/or Regional Governments shall develop job training and apprenticeship.
(2)
The development of job training and apprenticeship shall be directed to improve the relevance, quality, and efficiency of job training administration and productivity.
(3)
Efforts to improve productivity as mentioned under subsection (2) shall be made through the development of productive culture, work ethics, technology and efficiency of economic activities directed towards the realization of national productivity.
Explanatory Note :
Sufficiently clear.Article 30
(1)
In order to enhance productivity as mentioned under subsection (2) of Article 29, a national productivity institute shall be established.
(2)
The national productivity institute as mentioned under subsection (1) shall be in the form of an institutional productivity enhancement service network, which supports cross-sector and cross-regional activities/programs.
(3)
The formation, membership and procedures of work of the national productivity institute as mentioned under subsection (1) shall be regulated with a Presidential Decision.
Explanatory Note :
Sufficiently clear.CHAPTER VI
JOB PLACEMENT
Article 31
Any manpower shall have equal rights and opportunities to choose a job, get a job, or move to another job and earn decent income irrespective of whether they are employed at home or abroad.
Explanatory Note :
Sufficiently clear.Article 32
(1)
Job placement shall be carried out based on transparency, free, objectivity, fairness and equal opportunity without discrimination.
Explanatory Note :
Subsection (1)- The term transparency here refers to the giving of clear information to jobseekers concerning the type of work, the amount of wages, and working hours. This is necessary to protect workers/ labourers and to avoid disputes after the placement takes place.
- Free means that jobseekers are free to choose whatever job they like and employers are also free to choose manpower/ jobseekers they like. Thus jobseekers must not be forced to accept a job and employers must not be forced to accept any manpower offered to him.
- The term objectivity here is intended to encourage employers to offer to jobseekers jobs that suit their abilities and qualifications. In so doing, however, employers have to consider the interests of the public and must not take sides.
- The phrase fairness and equal here shall refer to placement purely based on the ability of the manpower and not based on the manpower’s race, sex, skin color, religion, and political orientation.
(2)
Job placement shall be directed to place manpower in the right job or position which best suits their skills, trade, capability, talents, interest and ability by observing their dignity and rights as human beings as well as legal protection.
Explanatory Note :
Subsection (2) Sufficiently clear.(3)
Job placement shall be carried out by taking into account the equal distribution of equal opportunity and the available supply of manpower in accordance with the needs of the national and regional development programs.
Explanatory Note :
Subsection (3) Efforts must be made to ensure equal distribution of job opportunities in the whole territory of the State of the Republic of Indonesia as a unified national job market by providing the whole manpower with the same opportunity to get job according to their talents, interests and ability. Efforts to ensure equal distribution of job opportunities also need to be made so that the need for manpower in all sectors and regions can be fulfilled.Article 33
The placement of manpower consists of:
a. The placement of manpower at domestic level;
b. The placement of manpower in foreign countries.
Explanatory Note :
Sufficiently clear.Article 34
Provisions concerning the placement of manpower in foreign countries as mentioned under Article 33 point b shall be regulated with an act.
Explanatory Note :
Prior to the enactment of the act on the placement of manpower in foreign countries, all laws and regulations that regulate placement of manpower in foreign countries shall remain valid.Article 35
(1)
Employers who need workforce may recruit by themselves the workforce they need or have them recruited through job placement agencies.
Explanatory Note :
Subsection (1) Employers under this subsection refer to domestic employers.(2)
Job placement agencies as mentioned under subsection (1) are under an obligation to provide protection to manpower that they try to find a placement for since their recruitment takes place until their placement is realized.
Explanatory Note :
Subsection (2) Employers under this subsection refer to domestic employers.(3)
In employing people who are available for a job, the employers as mentioned under subsection (1) are under an obligation to provide protection which shall include protection for their welfare, safety and health, both mental and physical.
Explanatory Note :
Subsection (3) Sufficiently clear.Article 36
(1)
The placement of manpower by a job placement agency as mentioned under subsection (1) of Article 35 shall be carried out through the provision of job placement service.
(2)
Job placement service as mentioned under subsection (2) shall be provided/rendered in an integrated manner within a job placement system to which the following elements are part:
- Job seekers;
- Vacancies;
- Job market information;
- Inter-job mechanisms; and
- Institutional arrangements for job placement.
(3)
Activities connected with the elements of the job placement system as mentioned under subsection (2) can take place separately and are aimed at the realization of the placement of manpower.
Explanatory Note :
Sufficiently clear.Article 37
(1)
Job placement agencies as referred to in Article 35 subsection (1) shall consist of:
a. government agencies responsible for manpower affairs; and
a. government agencies responsible for manpower affairs; and
b. private manpower placement agencies.
(2)
Private manpower placement agencies as referred to in subsection (1) point b, in carrying out manpower placement services, shall obtain a Business License issued by the Central Government.
(3)
The Business License as referred to in subsection (2) shall comply with the norms, standards, procedures, and criteria stipulated by the Central Government.
Explanatory Note :
Sufficiently clear.Article 38
(1)
Job placement agencies as mentioned under point a subsection (1) of Article 37 are prohibited from collecting placement fees, either directly or indirectly, in part or in whole, from people available for work whom they find a placement for and their users.
(2)
Private job placement agencies as mentioned under point b subsection (1) of Article 37 may only collect placement fees from users of their service and from workers of certain ranks and occupation whom they have placed.
(3)
The ranks and occupation as mentioned under subsection (2) shall be regulated with a Ministerial Decision.
Explanatory Note :
Sufficiently clear.CHAPTER VII
EXTENSION OF JOB OPPORTUNITIES
Article 39
(1)
The government is responsible for making efforts to extend job opportunities either within or outside of employment relationships.
(2)
The government and the society shall jointly make efforts to extend job opportunities either within or outside of employment relationships.
(3)
All the government’s policies, at the central or regional level and in each sector, shall be directed to realize the extension of job opportunities either within or outside of employment relationships.
(4)
Financial institutions, either banks or non-banks, and the business society need to help and facilitate each activity of the society which can create or develop extension of job opportunities.
Explanatory Note :
Sufficiently clear.Article 40
(1)
Extension of employment opportunities outside of employment relationships shall be undertaken through the creation of productive and sustainable activities by efficient use of natural resource potentials, human resources, and effective practical technologies.
(2)
Extension of employment opportunities as mentioned under subsection (1) shall be undertaken through patterns of formation and development for the self-employed, the application of labour-intensive system, the application and development of effective practical technology, and efficient use of volunteers or other patterns that may encourage the creation of job opportunity extension.
Explanatory Note :
Sufficiently clear.Article 41
(1)
The government shall determine manpower and job opportunity extension policies.
(2)
The government and the society shall jointly exercise control over the implementation of the policies as mentioned under subsection (1).
(3)
In implementing the duty as mentioned under subsection (2), a coordinating body with government and society constituents as its members may be established.
(4)
Provisions concerning the extension of job opportunities as mentioned under Article 39 and Article 40 and the formation of a coordinating body as mentioned under subsection (3) of this Article shall be regulated with a Government Regulation.
Explanatory Note :
Because efforts to extend job opportunities are of cross-sector coverage, a national policy must be made in all sectors to absorb manpower optimally. In order to properly implement the national policy, the government and society shall jointly and in a coordinated way monitor and control the implementation of the policy.CHAPTER VIII
EMPLOYMENT OF FOREIGN WORKER
Article 42
(1)
Every Employer who employs Foreign Workers shall possess a foreign manpower utilization plan approved by the Central Government.
(2)
Individual employers are prohibited from employing Foreign Workers.
(3)
The obligation to possess a foreign manpower utilization plan as referred to in subsection (1) shall not apply to:
a. members of the board of directors or commissioners who hold certain shares or shareholders in accordance with the provisions of laws and regulations;
b. diplomatic and consular officials at foreign representative offices; or
c. Foreign Workers required by Employers for types of production activities halted due to emergencies, vocational programs, technology-based start-up companies, business visits, and research for a limited period.
a. members of the board of directors or commissioners who hold certain shares or shareholders in accordance with the provisions of laws and regulations;
b. diplomatic and consular officials at foreign representative offices; or
c. Foreign Workers required by Employers for types of production activities halted due to emergencies, vocational programs, technology-based start-up companies, business visits, and research for a limited period.
(4)
Foreign Workers may be employed in Indonesia only under an Employment Relationship for certain positions and certain periods, and must possess the competencies relevant to the positions to be held.
(5)
Foreign Workers shall be prohibited from holding positions related to personnel affairs.
(6)
Provisions regarding the certain positions and certain periods as referred to in subsection (4) shall be regulated by Government Regulation.
Explanatory Note :
Sufficiently clear.Article 43
Article 43 Deleted.
Explanatory Note :
Article 43 is deleted.Article 44
Article 44 Deleted.
Explanatory Note :
Article 44 is deleted.Article 45
(1)
Every Employer of Foreign Workers shall:
a. appoint Indonesian citizens as counterparts to the employed Foreign Workers for the purpose of technology and skill transfer;
Explanatory Note :
Point a The counterpart to the Foreign Worker does not automatically replace or assume the position held by the Foreign Worker. The primary purpose of the counterpart arrangement is to facilitate the transfer of technology and expertise, so that the counterpart is expected to develop the competencies required to eventually replace the Foreign Worker.
b. provide education and Job Training to the Indonesian citizen counterparts as referred to in point a, in accordance with the qualifications required for the position held by the Foreign Worker.
Explanatory Note :
Point b The education and Job Training provided by the Employer may be conducted domestically or by sending the Indonesian citizen for training abroad.
c. repatriate the Foreign Worker to their country of origin upon the termination of their Employment Relationship.
Explanatory Note :
Point c Sufficiently clear.(2)
The provisions as referred to in subsection (1) points a and b shall not apply to Foreign Workers who occupy certain positions.
Explanation:
Explanatory Note :
Subsection (2) Sufficiently clear.Article 46
Article 46 Deleted.
Explanatory Note :
Article 46 is deleted.Article 47
(1)
Every Employer shall pay compensation for each Foreign Worker employed.
Explanatory Note :
Subsection (1) The obligation to pay compensation is intended to support efforts to improve the quality of Indonesia’s human resources.(2)
The obligation to pay compensation as referred to in subsection (1) shall not apply to government institutions, foreign diplomatic missions, international organizations, social institutions, religious institutions, and certain positions in educational institutions.
Explanatory Note :
Subsection (2) Sufficiently clear.(3)
Provisions regarding the amount and utilization of the compensation as referred to in subsection (1) shall be regulated in accordance with the provisions of laws and regulations.
Explanatory Note :
Subsection (3) Sufficiently clear.Article 48
Article 48 Deleted.
Explanatory Note :
Article 48 is deleted.Article 49
Further provisions comcerning the employment of Foreign Workers shall be regulated by Government Regulation.
Explanatory Note :
Sufficiently clear.CHAPTER IX
EMPLOYMENT RELATION
Article 50
Employment relation exists because of the existence of a work agreement between the entrepreneur and the worker/labourer.
Explanatory Note :
Sufficiently clear.Article 51
(1)
Work agreements can be made either orally or in writing.
Explanatory Note :
Subsection (1) Principally, work agreements shall be made in writing. However, given the various conditions in the society, oral work agreements are possible.(2)
Work agreements that specify requirements in writing shall be carried out in accordance with valid legislation.
Explanatory Note :
Subsection (2) Work agreements that specify work requirements in writing must be in accordance with the prevailing laws and regulations, including work agreements for a specified time, inter-work inter-region and inter-work inter- country and maritime work agreements.Article 52
(1)
A work agreement shall be made based on:
a. The agreement of the parties;
Explanatory Note :
Subsection (1) Point a Sufficiently clear.
b. The capability or competence to take legal actions;
Explanatory Note :
Point b The phrase capability or competence to take legal actions refers to parties who are capable or competent by law to make agreements. Work agreements for child labour shall be signed by their parents or guardians.
c. The availability/existence of the job which the parties have agreed about;
Explanatory Note :
Point c Sufficiently clear.
d. The notion that the job which the parties have agreed about is not against public order, morality and what is prescribed in the prevailing laws and regulations.
Explanatory Note :
Point d Sufficiently clear.(2)
If a work agreement, which has been made by the parties, turns out to be against what is prescribed under point a and point b of subsection (1), the agreement may be abolished/cancelled.
Explanatory Note :
Subsection (2) Sufficiently clear.(3)
If a work agreement, which has been made by the parties, turns out to be against what is prescribed under point c and point d of subsection (1), the agreement shall be declared null and void by law.
Explanatory Note :
Subsection (3) Sufficiently clear.Article 53
Everything associated with, and/or the costs needed for, the making of a work agreement shall be borne by, and shall be the responsibility of, the entrepreneur.
Explanatory Note :
Sufficiently clear.Article 54
(1)
A written work agreement shall at least include:
- The name, address and line of business;
- The name, sex, age and address of the worker/labourer;
- The occupation or the type of job;
- The place, where the job is to be carried out;
- The amount of wages and how the wages shall be paid;
- Job requirements stating the rights and obligations of both the entrepreneur and the worker/ labourer;
- The date the work agreement starts to take effect and the period during which it is effective;
- The place and the date where the work agreement is made; and
- The signatures of the parties involved in the work agreement.
Explanatory Note :
Subsection (1) Sufficiently clear.(2)
The provisions in a work agreement as mentioned under point e and point f of subsection (1) are concerned must not against the company regulations, the collective labour agreement and prevailing laws and regulations.
Explanatory Note :
Subsection (2) What is meant by the phrase must not against stated under this subsection is that if the enterprise already has its rules and regulations or its collective labour agreement, then the content of the work agreement, both in terms of quality and quantity, can not be lower than the provisions under the company regulations or the collective labour agreement.(3)
work agreement as mentioned under subsection (1) shall be made in 2 (two) counterparts which have the same legal force, 1 (one) copy of which shall be kept by the entrepreneur and the other by the worker/ labourer.
Explanatory Note :
Subsection (3) Sufficiently clear.Article 55
A work agreement cannot be withdrawn and/or changed unless the parties agreed otherwise.
Explanatory Note :
Sufficiently clear.Article 56
(1)
A Work Agreement shall be made either as a Work Agreement for a Specified Time or a Work Agreement for an Unspecified Time.
(2)
A Work Agreement for a Specified Time as referred to in subsection (1) shall be based on:
a. a certain period of time; or
b. The completion of a specific job.
(3)
The certain period of time or the completion of a specific job as referred to in subsection (2) shall be determined based on the Work Agreement.
(4)
Further provisions concerning Work Agreements for a Specified Time based on a certain period of time or the completion of a specific job shall be regulated by Government Regulation.
Explanatory Note :
Sufficiently clear.Article 57
(1)
A Work Agreement for a Specified Time shall be made in writing and shall be written in the Indonesian language using Latin script.
(2)
In the event that a Work Agreement for a Specified Time is made in both the Indonesian language and a foreign language, and a difference in interpretation arises between the two versions, the version in the Indonesian language shall prevail.
Explanatory Note :
Sufficiently clear.Article 58
(1)
A Work Agreement for a Specified Time shall not include any provision concerning a probation period.
(2)
In the event that a probation period is stipulated in a Work Agreement for a Specified Time as referred to in subsection (1), such probation period shall be null and void by law, and the working period shall still be counted.
Explanatory Note :
Sufficiently clear.Article 59
(1)
A work agreement for a specified time can only be made for a certain job, which, because of the type and nature of the job, will finish in a specified time, that is:
a. work that is one-off or temporary in nature;
b. work that is expected to be completed within a relatively short period of time;
c. seasonal work;
d. work related to new products, new activities, or additional products that are still in the trial or exploratory stage; or
e. work whose type, nature, or activities are non-permanent in character.
Explanatory Note :
Subsection (1) The Work Agreement referred to in this subsection shall be registered with the agency responsible for manpower affairs.(2)
A Work Agreement for a Specified Time shall not be made for permanent work.
Explanatory Note :
Subsection (2) What is meant by “permanent work” shall be work that is continuous in nature, not intermittent, not limited by time, and forms part of a production process within a Company, or work that is not seasonal. Work that is not seasonal refers to work that is not dependent on weather or specific conditions. If the work is continuous, not intermittent, not limited by time, and forms part of a production process, but is dependent on weather or required due to certain conditions, then such work shall be considered seasonal non-permanent work, and may therefore become the object of a Work Agreement for a Specified Time.(3)
A Work Agreement for a Specified Time that does not meet the conditions as referred to in subsections (1) and (2) shall by law become a Work Agreement for an Unspecified Time.
Explanatory Note :
Subsection (3) Sufficiently clear.(4)
Further provisions concerning the type and nature of work, duration, and the limit of extension for a Work Agreement for a Specified Time shall be regulated by Government Regulation.
Explanatory Note :
Subsection (4) Sufficiently clear.Article 60
(1)
A work agreement for an unspecified time may require a probation period for no longer than 3 (three) months.
Explanatory Note :
Subsection (1) A requirement for a probationary period must be stated in a work agreement. If the work agreement is made orally, the requirement for a probationary period must be made known to the worker and stated in the worker’s letter of appointment. If the work agreement or the letter of appointment is silent about probationary period, probationary period shall be considered non-existent.(2)
During the probation period as mentioned under subsection (1), the entrepreneur is prohibited from paying wages less than the applicable minimum wage.
Explanatory Note :
Subsection (2) Sufficiently clear.Article 61
(1)
A Work Agreement shall be terminated under the following circumstances:
a. The worker dies; or
Explanatory Note :
Subsection (1) Point a Sufficiently clear.
b. The work agreement expires; or
Explanatory Note :
Point b Sufficiently clear.
c. the completion of a certain work;
Explanatory Note :
Point c Sufficiently clear.
d. a court decision and/or a decision of an industrial relations dispute settlement institution that has obtained permanent legal force; or
Explanatory Note :
Point d Sufficiently clear.
e. the occurrence of a particular event or condition as stipulated in the Work Agreement, Company Regulation, or Collective Work Agreement which may result in the termination of the Employment Relationship.
Explanatory Note :
Point e The “particular event or condition” refers to situations such as natural disasters, social unrest, or security disturbances.(2)
A Work Agreement shall not be terminated due to the death of the Employer or the transfer of ownership rights of the Company resulting from a sale, inheritance, or grant.
Explanatory Note :
Subsection (2) Sufficiently clear.(3)
In the event of a transfer of Company ownership, the rights of the Worker shall become the responsibility of the new Employer, unless otherwise stipulated in the transfer agreement, provided that such stipulation does not reduce the rights of the Worker.
Explanatory Note :
Subsection (3) Sufficiently clear.(4)
In the event that an individual Employer passes away, the heir of the Employer may terminate the Work Agreement after negotiating with the Worker.
Explanatory Note :
Subsection (4) Sufficiently clear.(5)
In the event that the Worker passes away, the heir of the Worker shall be entitled to receive the Worker’s rights in accordance with statutory regulations or the rights stipulated in the Work Agreement, Company Regulation, or Collective Work Agreement.
Explanatory Note :
Subsection (5) What is meant by “the rights in accordance with statutory regulations or the rights stipulated in the Work Agreement, Company Regulation, or Collective Work Agreement” shall be rights that must be granted and that are more favorable and beneficial to the Worker concerned.Article 61A
(1)
In the event that a Work Agreement for a Specified Time ends as referred to in Article 61 subsection (1) point b and point c, the Employer shall be obligated to provide compensation to the Worker.
(2)
The compensation referred to in subsection (1) shall be provided to the Worker in accordance with the length of service of the Worker at the relevant Company.
(3)
Further provisions concerning compensation shall be regulated by Government Regulation.
Explanatory Note :
Sufficiently clear.Article 62
If either party in a work agreement for a specified time shall terminates the employment relations prior to the expiration of the agreement, or if their work agreement has to be ended for reasons other than what is given under subsection (1) of Article 61, the party that terminates the relation is obliged to pay compensation to the other party in the amount of the worker’s/ labourer’s wages until the expiration of the agreement.
Explanatory Note :
Sufficiently clear.Article 63
(1)
If a work agreement for an unspecified time is made orally, the entrepreneur is under an obligation to issue a letter of appointment for the relevant worker/ labourer.
(2)
The letter of appointment as mentioned under subsection (1) shall at least contain information concerning:
a. The name and address of the worker/ labourer;
b. The date the worker starts to work;
c. The type of job or work; and
d. The amount of wages.
Explanatory Note :
Sufficiently clear.Article 64
(1)
A Company may assign part of the performance of work to another Company through a written outsourcing agreement.
(2)
The Government shall determine which parts of work performance as referred to in subsection (1) may be outsourced.
(3)
Further provisions concerning the determination of parts of work performance as referred to in subsection (2) shall be regulated by Government Regulation.
Explanatory Note :
Sufficiently clear.Article 65
Article 65 Deleted.
Explanatory Note :
Article 65 is deleted.Article 66
(1)
The Employment Relationship between the outsourcing Company and the Worker it employs shall be based on a written Work Agreement, either a Work Agreement for a Specified Time or a Work Agreement for an Unspecified Time.
Explanatory Note :
Subsection (1) Sufficiently clear.(2)
The protection of the Worker, wages and welfare, working conditions, and the settlement of disputes shall be carried out at minimum in accordance with the provisions of statutory regulations and shall be the responsibility of the outsourcing Company.
Explanatory Note :
Subsection (2) Sufficiently clear.(3)
In the event that the outsourcing Company employs Workers based on a Work Agreement for a Specified Time as referred to in subsection (1), such agreement shall include a requirement for the transfer of protection of the Worker’s rights in the event of a change in the outsourcing Company, provided that the object of the work remains.
Explanatory Note :
Subsection (3) What is meant by “transfer of protection of the Worker’s rights” shall be the obligation of the new outsourcing Company to provide protection to the Worker that is at least equal to the protection previously provided by the former outsourcing Company. What is meant by “the object of the work remains” shall be the same work performed for the same employer Company.(4)
The outsourcing Company as referred to in subsection (1) shall be in the form of a legal entity and must obtain a Business License issued by the Central Government.
Explanatory Note :
Subsection (4) Sufficiently clear.(5)
The Business License as referred to in subsection (4) must meet the norms, standards, procedures, and criteria stipulated by the Central Government.
Explanatory Note :
Subsection (5) Sufficiently clear.(6)
Further provisions concerning Worker protection as referred to in subsection (2) and the Business License as referred to in subsection (4) shall be regulated by Government Regulation.
Explanatory Note :
Subsection (6) Sufficiently clear.CHAPTER X
PROTECTION, WAGES AND WELFARE
Section one
Protection
Subsection 1
Persons with Disabilities
Article 67
(1)
Entrepreneurs who employ Workers with disabilities shall be obligated to provide protection in accordance with the type and degree of the disability.
Explanatory Note :
Subsection (1) The protection as referred to in this subsection may include, for example, the provision of accessibility as well as the supply of work equipment and personal protective equipment adapted to the type and degree of disability.(2)
The provision of protection as referred to in subsection (1) shall be carried out in accordance with the provisions of statutory regulations.
Explanatory Note :
Subsection (2) Sufficiently clear.Subsection 2
Children
Article 68
Entrepreneurs are not allowed to employ children.
Explanatory Note :
Sufficiently clear.Article 69
(1)
Exemption from what is stipulated under Article 68 may made for the employment of children aged between 13 (thirteen) years old and 15 (fifteen) years old for light work to the extent that the job does not stunt or disrupt their physical, mental and social developments.
(2)
Entrepreneurs who employ children for light work as mentioned under subsection (1) must meet the following requirements:
a. The entrepreneurs must have written permission from the parents or guardians of the children;
b. There must be a work agreement between the entrepreneur and the parents or guardians;
c. Maximum working time 3 (three) hours a day;
d. Conducting during the day without disturbing school time;
e. occupational safety and health;
f. A clear employment relations; and
g. receive wages in accordance with the prevailing provisions.
(3)
The provisions as mentioned under point a, b, f and point g of subsection (2) shall not apply to children who work in a family business.
Explanatory Note :
Sufficiently clear.Article 70
(1)
Children may work at a workplace as part of their school’s education curriculum or training legalized by the authorities.
(2)
The children as mentioned under subsection (1) at least 14 (fourteen) years of age.
(3)
The job as mentioned under subsection (1) can be performed on the conditions:
a. given clear instructions on how to do the job as well as guidance and supervision on how to carry out the work; and
b. given the occupational safety and health.
Explanatory Note :
Sufficiently clear.Article 71
(1)
Children may work in order to develop their talents and interest.
Explanatory Note :
Subsection (1) What is stipulated under this subsection is intended to protect children in such a way that the development of their talents and interest – that commonly takes place at their age – is not disrupted.(2)
Entrepreneurs who employ children as mentioned under subsection (1) are under an obligation to meet the following requirements:
a. put under direct supervision of their parents or guardians;
b. maximum working time 3 (three) hours a day; and
c. the working conditions and environment do not disrupt their physical, mental and social developments as well as school time;
Explanatory Note :
Subsection (2) Sufficiently clear.(3)
Provisions concerning children who work to develop their talents and interest as mentioned under subsection (1) and subsection (2) shall be regulated with a Ministerial Decision.
Explanatory Note :
Subsection (3) Sufficiently clear.Article 72
In case children are employed together with adult workers/labourers, the children’s workplace must be separated from the workplace for adult workers/labourers.
Explanatory Note :
Sufficiently clear.Article 73
Children shall be assumed to be at work if they are found in a workplace unless there is evidence to prove otherwise.
Explanatory Note :
Sufficiently clear.Article 74
(1)
Anyone shall be prohibited from employing and involving children in the worst forms of child labour.
(2)
The worst forms of child labour as mentioned under subsection (1) include:
- All kinds of job in the form of slavery or practices similar to slavery;
- All kinds of job that make use of, procure, or offer children for prostitution, the production of pornography, pornographic performances or gambling;
- All kinds of job that make use of, procure, or involve children for the production and trade of alcoholic beverages, narcotics, psychotropic substances and other addictive substances; and/or
- All kinds of job harmful to the health, safety and moral.
(3)
The types of jobs that damage the health, safety or moral of the child as mentioned under point d of subsection (2) shall be regulated with a Ministerial Decision.
Explanatory Note :
Sufficiently clear.Article 75
(1)
The government is under an obligation to make efforts to overcome problems concerning with children who work outside of employment relationship.
Explanatory Note :
Subsection (1) Efforts to overcome problems associated with children who work outside of employment relations are intended to ensure that no child works outside of employment relations or to reduce the number of children who work outside of employment relations. These efforts must be carried out in a well-planned, well- integrated and well-coordinated manner with related agencies. Children who work outside of employment relations are for instance shoeshine boys or newspaper boys.(2)
The efforts as mentioned under subsection (1) shall be regulated with a Government Regulation.
Explanatory Note :
Subsection (2) Sufficiently clear.Subsection 3
Women
Article 76
(1)
It is prohibited to employ female workers/ labourers aged less than 18 (eighteen) years of age between 11 p.m. until 7 a.m.
Explanatory Note :
Subsection (1) Entrepreneurs shall be the ones responsible for the violation of this article. Should female workers/labourers as mentioned under this subsection be employed between 11 p.m. until 7 a.m., the entrepreneur shall be held responsible for this violation.(2)
Entrepreneurs are prohibited from employing pregnant female workers/ labourers who, according to a doctor’s certificate, are at risk of damaging their health or harming their own safety and the safety of the baby that are in their wombs if they work between 11 p.m. until 7 a.m.
Explanatory Note :
Subsection (2) Sufficiently clear.(3)
Entrepreneurs who employ female workers/ labourers to work between 11 p.m. until 7 a.m. are under an obligation:
a. To provide them with nutritious food and drinks; and
b. To maintain decency/ morality and security in the workplace.
Explanatory Note :
Subsection (3) Sufficiently clear.(4)
Entrepreneurs are under an obligation to provide returned/ roundtrip transport for female workers/ labourers who work between 11 p.m. until 5 a.m.
Explanatory Note :
Subsection (4) Sufficiently clear.(5)
Provisions as mentioned under subsection (3) and subsection (4) shall be regulated with a Ministerial Decision.
Explanatory Note :
Subsection (5) Sufficiently clear.Subsection 4
Working Hours
Article 77
(1)
Every entrepreneur shall implement the provisions concerning working hours.
Explanatory Note :
Subsection (1) Sufficiently clear.(2)
The working hours as mentioned under subsection (1) cover:
a. 7 (seven) hours per day and 40 (forty) hours per week for 6 (six) working days in 1 (one) week; or
b. 8 (eight) hours per day and 40 (forty) hours per week for 5 (five) working days in 1 (one) week.
Explanatory Note :
Subsection (2) Sufficiently clear.(3)
The provisions on working hours as referred to in subsection (2) shall not apply to certain business sectors or specific types of work.
Explanatory Note :
Subsection (3) In certain business sectors or specific types of work, provisions on working hours may be applied that are less than or more than 7 (seven) hours per day and 40 (forty) hours per week, or 8 (eight) hours per day and 40 (forty) hours per week.(4)
The implementation of working hours for Workers in the Company shall be regulated in the Work Agreement, Company Regulation, or Collective Work Agreement.
Explanatory Note :
Subsection (4) Sufficiently clear.(5)
Further provisions concerning working hours in certain business sectors or specific types of work as referred to in subsection (3) shall be regulated by Government Regulation.
Explanatory Note :
Subsection (5) Sufficiently clear.Article 78
(1)
Entrepreneurs who require their workers/ labourers to work longer than the working hours determined under subsection (2) of Article 77 must meet the following requirements:
a. Approval of the relevant worker/labourer;
b. overtime work may only be performed for a maximum of 4 (four) hours per day and 18 (eighteen) hours per week.
Explanatory Note :
Subsection (1) Employing workers beyond normal working hours should be avoided as much as possible, because Workers must have sufficient time to rest and recover their fitness. However, in certain circumstances, there may be urgent needs that must be addressed immediately and cannot be avoided, thereby requiring the Worker to work beyond regular working hours.(2)
An Employer who requires a Worker to work beyond the working hours as referred to in subsection (1) shall be obliged to pay Overtime Wages.
Explanatory Note :
Subsection (2) Sufficiently clear.(3)
The provisions concerning overtime as mentioned under subsection (1) point b do not apply to certain business sector or certain jobs.
Explanatory Note :
Subsection (3) Sufficiently clear.(4)
Further provisions concerning overtime work and Overtime Wages shall be regulated by Government Regulation.
Explanatory Note :
Subsection (4) Sufficiently clear.Article 79
(1)
Entrepreneurs shall provide:
a. rest time; and
b. leave.
Explanatory Note :
Subsection (1) Sufficiently clear.(2)
Rest time as referred to in subsection (1) point a shall at minimum be granted to the Worker and shall include:
a. rest between working hours, at least half an hour after working continuously for 4 (four) hours, and such rest time shall not be counted as working hours; and
b. 1 (one) day of weekly rest for 6 (six) working days in 1 (one) week.
Explanatory Note :
Subsection (2) Sufficiently clear.(3)
Leave as referred to in subsection (1) point b that must be granted to the Worker shall include annual leave of at least 12 (twelve) working days after the Worker has worked for 12 (twelve) consecutive months.
Explanatory Note :
Subsection (3) Sufficiently clear.(4)
The implementation of annual leave as referred to in subsection (3) shall be regulated in the Work Agreement, Company Regulation, or Collective Work Agreement.
Explanatory Note :
Subsection (4) Sufficiently clear.(5)
In addition to the rest and leave as referred to in subsections (1), (2), and (3), certain Companies may grant extended leave as regulated in the Work Agreement, Company Regulation, or Collective Work Agreement.
Explanatory Note :
Subsection (5) For Companies that have implemented extended leave, such implementation shall not reduce any existing provisions(6)
Further provisions concerning certain Companies as referred to in subsection (5) shall be regulated by Government Regulation.
Explanatory Note :
Subsection (6) Sufficiently clear.Article 80
Entrepreneurs are under an obligation to provide workers with adequate opportunity to perform their religious obligations.
Explanatory Note :
What is meant by the provision of adequate opportunity shall refer to the provision of a place for praying to and worshipping God that enables workers/labourers to properly perform their religious obligations/ rituals, in which the enterprise’s conditions and financial ability for the provision of such a place shall be taken into account.Article 81
(1)
Female workers/labourers who feel pain during their menstruation period and notify the entrepreneur about this are not obliged to come to work on the first and second day of menstruation.
(2)
The implementation of what is stipulated under subsection (1) shall be regulated in work agreements, the company regulations or collective labour agreements.
Explanatory Note :
Sufficiently clear.Article 82
(1)
Female workers/ labourers are entitled to a 1.5 (one-and- a-half ) month period of rest before the time at which they are estimated by an obstetrician or a midwife to give birth to a baby and another 1.5 (one-and-a-half ) month period of rest thereafter.
Explanatory Note :
Subsection (1) The length of the period of rest may be extended if required as attested by a written statement from the obstetrician or midwife either prior to or after the delivery.(2)
A female worker/ labourer who has a miscarriage is entitled to a period of rest of 1.5 (one-and-a-half ) months or a period of rest as stated in the medical statement issued by the obstetrician or midwife.
Explanatory Note :
Subsection (2) Sufficiently clear.Article 83
Entrepreneurs are under an obligation to provide proper opportunities to female workers/ labourers whose babies still need breastfeeding to breast-feed their babies if that must be performed during working hours.
Explanatory Note :
What is meant by providing proper opportunities to female workers/ labourers to breast-feed their babies during working hours are periods of time provided by the enterprise to the female workers/ labourers to breast- feed their babies, by taking into account the availability of a place/ room that can be used for such a purpose according to the enterprise’s conditions and financial ability, which shall be regulated in the company regulations or collective labour agreements.Article 84
Every worker/ labourer who uses her right to take the period of rest as specified under Article 79 subsection (2) point b, subsection (3), subsection (5), Article 80, and Article 82 shall be entitled to receive full Wages.
Explanatory Note :
Sufficiently clear.Article 85
(1)
Workers/ labourers are not obliged to work on formal public holidays.
Explanatory Note :
Subsection (1) Sufficiently clear.(2)
Entrepreneurs may require their workers/ labourers to work during formal public holidays if the types and nature of their jobs must be conducted continuously or under other circumstances based on the agreement between the worker/ labourer and the entrepreneur.
Explanatory Note :
Subsection (2) What is stipulated under this subsection is intended to serve the public interest and public welfare. Moreover, there are works whose type and nature are such that it is impossible to stop it.(3)
Entrepreneurs who require their workers/ labourers to work on formal public holidays as mentioned under subsection (2) are under an obligation to pay overtime pay.
Explanatory Note :
Subsection (3) Sufficiently clear.(4)
The provisions concerning the types and nature of the jobs mentioned under subsection (2) shall be regulated with a Ministerial Decision.
Explanatory Note :
Subsection (4) Sufficiently clear.Subsection 5
OCCUPATIONAL SAFETY AND HEALTH
Article 86
(1)
Every worker/ labourer has the right to receive protection on:
a. Occupational safety and health;
b. morality and decency; and
c. Treatment that shows respect to human dignity and religious values.
Explanatory Note :
Subsection (1) Sufficiently clear.(2)
In order to protect the safety of workers/ labourers and to realize optimal productivity, an occupational health and safety scheme shall be administered.
Explanatory Note :
Subsection (2) Occupational safety and health efforts are intended to provide guarantee of safety and increase the level of health of workers/ labourers by preventing occupational accidents and diseases, controlling hazards in the workplace, promoting health, medical care and rehabilitation.(3)
The protection as mentioned under subsection (1) and subsection (2) shall be given in accordance with prevailing laws and regulations.
Explanatory Note :
Subsection (3) Sufficiently clear.Article 87
(1)
Every enterprise is under an obligation to apply an occupational safety and health management system that shall be integrated into the enterprise’s management system.
Explanatory Note :
Subsection (1) The occupational safety and health management system is part of the overall management system of the enterprise, which includes organizational structure, planning, implementation, responsibility, procedures, processes, and resources that are needed for the development, application, achievement, study and maintenance of the enterprise‘s occupational safety and health policy in order to control the risks associated with working activities for the creation of secure, efficient and productive workplace.(2)
The provisions concerning the application of the occupational safety and health management system as mentioned under subsection (1) shall be regulated with a Government Regulation.
Explanatory Note :
Subsection (2) Sufficiently clear.Section two
Wages
Article 88
(1)
Every Worker shall be entitled to a decent livelihood for humanity.
Explanatory Note :
Subsection (1) Sufficiently clear.(2)
The Central Government shall determine wage policies as one of the efforts to realize the Worker’s right to a decent livelihood for humanity.
Explanatory Note :
Subsection (2) Sufficiently clear.(3)
The wages policy as referred to in subsection (2) shall include:
a. minimum wage;
Explanatory Note :
Subsection (3) Point a Sufficiently clear.
b. wage structure and scale;
Explanatory Note :
Point b Sufficiently clear.
c. overtime pay;
Explanatory Note :
Point c Sufficiently clear.
d. wages for absence or not performing work for certain reasons;
Explanatory Note :
Point d What is meant by “certain reasons” includes reasons such as the Worker being unable to work, engaging in activities outside of their job, or exercising their right to rest.
e. forms and methods of wage payment; and
Explanatory Note :
Point e Sufficiently clear.
f. matters that may be calculated with wages; and
Explanatory Note :
Point f What is meant by “matters that may be calculated with wages” includes, among others: fines, compensation, wage deductions for third parties, wage advances, house rent and/or rent of Company-owned goods rented to the Worker, installment debts from the Worker to the Employer, or overpaid wages.
g. wages as the basis for calculating or paying other rights and obligations.
Explanatory Note :
Point g What is meant by “wages as the basis for calculating or paying other rights and obligations” includes wages for severance pay or wages used to calculate income tax.(4)
Further provisions concerning wage policies shall be regulated by Government Regulation.
Explanatory Note :
Subsection (4) Sufficiently clear.Article 88A
(1)
A Worker’s right to Wages arises at the commencement of the Employment Relationship between the Worker and the Employer and terminates upon the end of the Employment Relationship.
Explanatory Note :
Subsection (1) Sufficiently clear.(2)
Every Worker shall be entitled to equal Wages for work of equal value.
Explanatory Note :
Subsection (2) Sufficiently clear.(3)
The Employer shall pay Wages to the Worker in accordance with the agreement.
Explanatory Note :
Subsection (3) Employers are prohibited from not paying Wages to Workers.(4)
Wage arrangements agreed upon between the Employer and the Worker or the Trade Union shall not be lower than the wage provisions as stipulated by statutory regulations.
Explanatory Note :
Subsection (4) Sufficiently clear.(5)
In the event that the agreement as referred to in subsection (4) provides for Wages lower than or contrary to statutory regulations, such agreement shall be null and void by law, and the wage arrangements shall be implemented in accordance with the statutory regulations.
Explanatory Note :
Subsection (5) Sufficiently clear.(6)
An Employer who, due to intent or negligence, causes a delay in the payment of Wages shall be subject to a penalty based on a certain percentage of the Worker’s Wages.
Explanatory Note :
Subsection (6) Sufficiently clear.(7)
A Worker who commits a violation due to intent or negligence may be subject to a fine.
Explanatory Note :
Subsection (7) Sufficiently clear.(8)
The Government shall regulate the imposition of fines on Employers and/or Workers in relation to wage payments.
Explanatory Note :
Subsection (8) Sufficiently clear.Article 88B
(1)
Wages shall be determined based on:
a. time units; and/or
b. output units.
(2)
Further provisions concerning Wages based on time units and/or output units as referred to in subsection (1) shall be regulated by Government Regulation.
Explanatory Note :
Sufficiently clear.Article 88C
(1)
The Governor shall be obligated to determine the provincial minimum wage.
(2)
The Governor may determine the regency/municipal minimum wage.
(3)
The determination of the regency/municipal minimum wage as referred to in subsection (2) shall be carried out in the event that the calculated result shows the regency/municipal minimum wage is higher than the provincial minimum wage.
(4)
The minimum wage as referred to in subsections (1) and (2) shall be determined based on economic and manpower conditions.
(5)
The economic and manpower conditions as referred to in subsection (4) shall use data sourced from authorized statistical agencies.
(6)
In the event that a regency/municipality does not yet have a minimum wage and will determine one, such determination must fulfill certain requirements.
(7)
Further provisions concerning the procedures for determining the minimum wage as referred to in subsection (4) and the specific requirements as referred to in subsection (6) shall be regulated by Government Regulation.
Explanatory Note :
Sufficiently clear.Article 88D
(1)
The minimum wage as referred to in Article 88C subsections (1) and (2) shall be calculated using a minimum wage calculation formula.
(2)
The minimum wage calculation formula as referred to in subsection (1) shall take into account variables such as economic growth, inflation, and certain indices.
(3)
Further provisions concerning the minimum wage calculation formula shall be regulated by Government Regulation.
Explanatory Note :
Sufficiently clear.Article 88E
(1)
The minimum wage as referred to in Article 88C subsections (1) and (2) shall apply to Workers with less than 1 (one) year of service at the relevant Company.
(2)
Employers are prohibited from paying Wages lower than the minimum wage.
Explanatory Note :
Sufficiently clear.Article 88F
Under certain circumstances, the Government may establish a different minimum wage calculation formula than that referred to in Article 88D subsection (2).
Explanatory Note :
What is meant by "certain circumstances" includes, among others, disasters declared by the President, extraordinary global and/or national economic conditions, such as non-natural disasters or pandemics.Article 89
Article 89 Deleted.
Explanatory Note :
Article 89 is deleted.Article 90
Article 90 Deleted.
Explanatory Note :
Article 48 is deleted.Article 90A
Wages above the minimum wage shall be determined based on an agreement between the Employer and the Worker at the Company.
Explanatory Note :
Sufficiently clear.Article 90B
(1)
The minimum wage provisions as referred to in Article 88C subsections (1) and (2) shall not apply to micro and small enterprises.
(2)
Wages in micro and small enterprises shall be determined based on an agreement between the Employer and the Worker at the Company.
(3)
The wage agreement as referred to in subsection (2) shall be at least a certain percentage of the average public consumption expenditure, based on data sourced from agencies authorized in the field of statistics.
(4)
Further provisions concerning wages for micro and small enterprises shall be regulated by Government Regulation.
Explanatory Note :
Sufficiently clear.Article 91
Article 91 Deleted.
Explanatory Note :
Article 91 is deleted.Article 92
(1)
Entrepreneurs shall be obligated to establish a wage structure and scale at the Company by taking into account the Company’s capabilities and productivity.
Explanatory Note :
Subsection (1) Sufficiently clear.(2)
The wage structure and scale shall be used as a guideline by the Entrepreneurs in determining Wages for Workers who have worked for 1 (one) year or more.
Explanatory Note :
Subsection (2) The establishment of a wage structure and scale is intended as a guideline for wage determination to ensure wage certainty for each Worker and to reduce the wage gap between the lowest and highest Wages within the relevant Company.(3)
Further provisions concerning the wage structure and scale shall be regulated by Government Regulation.
Explanatory Note :
Subsection (3) Sufficiently clear.Article 92A
The Entrepreneurs shall conduct periodic reviews of Wages by taking into account the Company’s capabilities and productivity.
Explanatory Note :
Wage reviews shall be conducted to adjust for the cost of living, work performance, developments, and the Company’s capabilities.Article 93
(1)
No wages will be paid if workers/labourers do not perform work.
Explanatory Note :
Subsection (1) What is stipulated under this subsection is a fundamental principle that is basically applicable to every worker/labourer, that is, unless the worker/ labourer cannot perform his/her job because of mistakes that are not his/her.(2)
However, the provision as mentioned under subsection (1) shall not apply and the entrepreneur shall be obliged to pay the worker/labourer’s wages if the worker/labourer does not perform work because of the following reasons:
a. The workers/labourers are ill so that they cannot perform their work;
Explanatory Note :
Subsection (2) Point a A worker/labourer are ill if there is a statement from the physician.
b. The female workers/labourers are ill on the first and second day of their menstruation period so that they cannot perform their work;
Explanatory Note :
Point b Sufficiently clear.
c. The workers/labourers have to be absent from work because they get married, marry of their children, have their sons circumcised, have their children baptized, or because the worker/ labourer’s wife gives birth or suffers from a miscarriage, or because the wife or husband or children or children-in-law(s) or parent(s) or parent-in-law(s) of the worker/labourer or a member of the worker/labourer’s household dies.
Explanatory Note :
Point c Sufficiently clear.
d. The workers/labourers cannot perform their work because they are carrying out or fulfilling their obligations to the State;
Explanatory Note :
Point d Fulfilling one’s obligation to the State means fulfilling State obligation, which is stipulated under laws and regulations.The payment of wages to workers/ labourers who have to be absent from work because they are required to perform their obligations to the State shall be made if:
a. The State does not pay the worker/labourer; or
b. The State pays worker/labourer less than the amount of wages he/she usually receives. In this case the entrepreneur is under an obligation to make up the difference.
e. The workers/labourers cannot perform their work because they are performing religious obligations ordered by their religion;
Explanatory Note :
Point e Practicing or observing religious duties ordered/ required by his/her religion means practicing religious obligations according to his/her religion requirement, which has been regulated with laws and regulations.
f. The workers/labourers are willing to do the job that they have been promised to but the entrepreneur does not employ them, because of the entrepreneur’s own fault or because of impediments that the entrepreneur should have been able to avoid;
Explanatory Note :
Point f Sufficiently clear.
g. The workers/labourers are exercising their right to take a rest;
Explanatory Note :
Point g Sufficiently clear.
h. The workers/labourers are performing their trade union duties with the permission from the entrepreneur; and
Explanatory Note :
Point h Sufficiently clear.
i. The workers/labourers are undergoing an education program required by their enterprise.
Explanatory Note :
Point i Sufficiently clear.(3)
The amount of wages payable to workers who are taken ill as mentioned under point a of subsection (2) shall be determined as follows:
a. For the first four months, they shall be entitled to receive 100 % (one hundred percent) of their wages;
b. For the second four months, they shall be entitled to receive 75 % (seventy five percent) of their wages;
c. For the third four months, they shall be entitled to receive 50 % (fifty percent) of their wages; and
d. For subsequent months, they shall be entitled to receive 25 % (twenty five percent) of their wages prior to the termination of employment by the entrepreneur.
Explanatory Note :
Subsection (3) Sufficiently clear.(4)
The amount of wages payable to workers/ labourers during the period in which they have to be absent from work for reasons specified under point c of subsection (2) shall be determined as follows,
a. If the workers/labourers are get married, shall be entitled to receive a payment for 3 (three) days;
b. If the workers/labourers marry of their children, shall be entitled to receive a payment for 2 (two) days;
c. If the workers/labourers’ child are circumcised, shall be entitled to receive a payment for 2 (two) days;
d. If the workers/labourers’ children are baptized, shall be entitled to receive a payment for 2 (two) days;
e. If a workers/labourers’ wife gives birth or suffers a miscarriage, shall be entitled to receive a payment for 2 (two) days;
f. If the workers/labourers’ spouse, or because either one parent or one of parent-in-law, or because one of children or children-in-law dies, shall be entitled to receive a payment for 2 (two) days; and
g. If a member of the worker/labourer’s household dies, shall be entitled to receive a payment for 1 (one) day.
Explanatory Note :
Subsection (4) Sufficiently clear.(5)
Arrangements for the implementation of what is stipulated under subsection (2) shall be specified in the work agreements, company regulations or collective labour agreements.
Explanatory Note :
Subsection (5) Sufficiently clear.Article 94
In the event that the components of Wages consist of basic wages and fixed allowances, the amount of basic wages shall be at least 75% (seventy-five percent) of the total basic wages and fixed allowances.
Explanatory Note :
What is meant by “fixed allowances” shall be payments made to the Worker on a regular basis and not related to the Worker’s attendance or the achievement of certain work performance.Article 95
(1)
In the event that the Company is declared bankrupt or liquidated based on the provisions of statutory regulations, Wages and other entitlements not yet received by the Worker shall be considered debts that must be prioritized for payment.
Explanatory Note :
Subsection (1) Sufficiently clear.(2)
The Wages of the Worker as referred to in subsection (1) shall be paid in priority before payments to all creditors.
Explanatory Note :
Subsection (2) What is meant by “shall be paid in priority” is that the Worker’s Wages shall be paid before all types of creditors, including secured creditors or creditors holding security rights over assets, claims of state rights, auction offices, and public institutions established by the government.(3)
Other entitlements of the Worker as referred to in subsection (1) shall be paid in priority over all creditors, except creditors holding security rights over assets.
Explanatory Note :
Subsection (3) Sufficiently clear.Article 96
Article 96 Deleted.
Explanatory Note :
Article 96 is deleted.Article 97
Article 97 Deleted.
Explanatory Note :
Article 97 is deleted.Article 98
(1)
To provide advice and recommendations to the Central Government or Regional Government in the formulation of wage policies and the development of the wage system, a wage council shall be established.
(2)
The wage council shall consist of representatives from the government, Employers’ organizations, Trade Unions/Labor Unions, experts, and academics.
(3)
Further provisions regarding the procedures for the establishment, membership composition, procedures for appointment and dismissal of members, as well as the duties and working procedures of the wage council shall be regulated by Government Regulation.
Explanatory Note :
Sufficiently clear.Section three
Welfare
Article 99
(1)
Workers/ labourers and their families shall each be entitled to social security.
(2)
The social security as mentioned under subsection (1) shall be administered in accordance with the prevailing laws and regulations.
Explanatory Note :
Sufficiently clear.Article 100
(1)
In order to improve the welfare of the workers/labourers and their families, the entrepreneur shall provide welfare facilities.
Explanatory Note :
Subsection (1) Welfare facilities shall refer to, for instance, family planning service, babysitting facilities, housing facilities for workers/ labourers, special rooms for prayer or other religious facilities, sports facilities, canteens, policlinic and other medical/ health facilities, and recreational facilities.(2)
The provision of welfare facilities as mentioned under subsection (1) shall be administered by weighing the need of the worker/labourer for welfare facilities against the enterprise’s ability to provide such facilities.
Explanatory Note :
Subsection (2) Sufficiently clear.(3)
The provisions concerning the type and criteria of welfare facilities according to the need of the worker/ labourer and the measurement of the enterprise’s ability to provide them as mentioned under subsection (1) and subsection (2) shall be regulated with a Government Regulation.
Explanatory Note :
Subsection (3) Sufficiently clear.Article 101
(1)
To improve workers/labourers’ welfare, workers/labourers’ cooperatives and productive business at the enterprise shall be established.
Explanatory Note :
Subsection (1) Productive business undertakings at the enterprise shall refer to economic activities that generate income other than wages.(2)
The government, the entrepreneur and the worker/ labourer or the trade/labour union shall make efforts to develop workers/labourers’ cooperatives and develop productive business as mentioned under subsection (1).
Explanatory Note :
Subsection (2) Sufficiently clear.(3)
Efforts to establish workers/labourers’ cooperatives as mentioned under subsection (1) shall be made in accordance with the prevailing laws and regulations.
Explanatory Note :
Subsection (3) Sufficiently clear.(4)
Efforts to develop workers/labourers’ cooperatives as mentioned under subsection (2) shall be regulated with a Government Regulation.
Explanatory Note :
Subsection (4) Sufficiently clear.CHAPTER XI
INDUSTRIAL RELATIONS
Section one
General
Article 102
(1)
In conducting industrial relations, the government shall perform the function of establishing policies, providing services, taking control and taking actions against any violations of statutory manpower laws and regulations.
(2)
In conducting industrial relations, workers/ labourers and their organizations unions shall perform the function of performing their jobs/ work as obliged, working order to ensure production, channeling their aspirations democratically, enhancing their skills and expertise and helping promote the business of the enterprise and fight for the welfare of their members and families.
(3)
In conducting industrial relations, entrepreneurs and their associations shall perform the function of creating partnership, developing business, diversifying employment and providing welfare to workers/ labourers in a transparent and democratic way and in a way that upholds justice.
Explanatory Note :
Sufficiently clear.Article 103
Industrial relations shall be applied through:
a. Trade/ labour unions;
b. Entrepreneurs’ organizations;
c. Bipartite cooperation institutions;
d. Tripartite cooperation institutions;
e. Company regulations;
f. Collective labour agreements;
g. Statutory manpower laws and regulations; and
h. Industrial relations dispute settlement institutes.
Explanatory Note :
Sufficiently clear.Section two
Trade/Labour Union
Article 104
(1)
Every worker/ labourer has the right to form and become member of a trade/ labour union.
Explanatory Note :
Subsection (1) The freedom to establish a trade/ labour union and to become or not to become member of a trade/ labour union is one of the fundamental rights of workers/ labourers.(2)
In performing functions as mentioned under Article 102, a trade/ labour union shall have the right to collect and manage fund and be accountable for the union’s finances, including for the provision of a strike fund.
Explanatory Note :
Subsection (2) Sufficiently clear.(3)
The amount of the strike fund and procedures for collecting it as mentioned under subsection (2) shall be regulated under the union’s constitution and/or the union’s by-laws.
Explanatory Note :
Subsection (3) Sufficiently clear.Section three
Entrepreneurs' Organization
Article 105
(1)
Every entrepreneur has the right to form and become a member of entrepreneurs’ organization.
(2)
The provisions concerning entrepreneurs’ organizations shall be regulated in accordance with the prevailing laws and regulations.
Explanatory Note :
Sufficiently clear.Section four
Bipartite Cooperation
Institution
Article 106
(1)
Every enterprise employing 50 (fifty) workers/ labourers or more is under an obligation to establish a bipartite cooperation institution.
Explanatory Note :
Subsection (1) At enterprises whose workers/ labourers number less than 50 (fifty) people, effective and proper communication and consultation can still be performed on an individual basis. However, if the enterprise has 50 (fifty) workers/ labourers or more, it is necessary to perform communication and consultation through a representative system.(2)
The bipartite cooperation institution as mentioned under subsection (1) shall function as a forum for communication and consultation on labour issues at an enterprise.
Explanatory Note :
Subsection (2) Sufficiently clear.(3)
The membership composition of the bipartite cooperation institution as mentioned under subsection (2) shall include the entrepreneur’s representatives and the worker/ labourer’s representatives who are democratically appointed by workers/ labourers to represent the interests of the worker/ labourer in the relevant enterprise.
Explanatory Note :
Subsection (3) Sufficiently clear.(4)
The provisions concerning the procedures for establishing the membership of the bipartite cooperation institution as mentioned under subsection (1) and subsection (3) shall be regulated with a Ministerial Decision.
Explanatory Note :
Subsection (4) Sufficiently clear.Section five
Tripartite Cooperation
Institution
Article 107
(1)
Tripartite cooperation institution shall provide considerations, recommendations and opinions to the government and other parties involved in policy making and problem solving concerning labour issues/ problems.
(2)
The tripartite cooperation institution as mentioned under subsection (1) shall consist of:
a. The National Tripartite Cooperation Institution and the Provincial, District/City Tripartite Cooperation Institutions; and
b. Sector-based National Tripar tite Cooperation Institution and sector-based Provincial, District/City Tripartite Cooperation Institutions.
(3)
The membership of tripartite cooperation institutions shall consist of representatives from the government, entrepreneurs’ organizations and trade/labour unions.
(4)
Procedures and organizational structures of tripartite cooperation institutions as mentioned under subsection (1) shall be regulated with a Government Regulation.
Explanatory Note :
Sufficiently clear.Section six
Company Regulations
Article 108
(1)
Every enterprise which employs at least 10 (ten) workers/ labourers is under an obligation to establish a set of company regulations that shall come into force after legalized by the Minister or appointed official.
(2)
The obligation to have a set of legalized company regulations as mentioned under subsection (1), however, does not apply to enterprises already having collective labour agreements.
Explanatory Note :
Sufficiently clear.Article 109
Entrepreneurs shall formulate the rules and regulations of their enterprise and shall be responsible for them.
Explanatory Note :
Sufficiently clear.Article 110
(1)
Companies regulations shall be formulated by taking into account the recommendations and considerations from the worker/ labourer’s representatives of the enterprise.
(2)
If a trade/ labour union have already been established in the enterprise, the worker/ labourer’s representatives as mentioned under subsection (1) shall be the trade/ labour union’s officials.
(3)
If there is no trade/ labour union in the enterprise, the worker/ labourer’s representatives mentioned under subsection (1) shall be the workers/ labourers who hold a position in, or are members of, the bipartite cooperation institution and or has been democratically elected by the workers/ labourers in the enterprise to represent them and act on behalf of their interests.
Explanatory Note :
Sufficiently clear.Article 111
(1)
Company regulations shall at least contain:
a. The rights and obligations of the entrepreneur;
b. The rights and obligations of the worker/labourer;
c. Working conditions;
d. Enterprise discipline and rule of conduct; and
e. The period of the validity of the company regulations.
Explanatory Note :
Subsection (1) Point a Sufficiently clear. Point b Sufficiently clear. Point c Working/work requirements refer to the rights and obligations of the entrepreneur and the worker/ labourer that have not been regulated under laws and regulations. Point d Sufficiently clear. Point e Sufficiently clear.(2)
Company regulations shall not against the prevailing laws and regulations.
Explanatory Note :
Subsection (2) The sentence ompany regulations shall not against any prevailing laws and regulations means that company regulations must not be lower in both quality and quantity than those stipulated under the prevailing laws and regulations. If proved otherwise, however, the stipulations of prevailing laws and regulations shall apply.(3)
The company regulations is valid for 2 (two) years and shall be renewed upon its expiration.
Explanatory Note :
Subsection (3) Sufficiently clear.(4)
During the validity of the company regulations, if the trade union within the enterprise request negotiation of the drafting of the collective labour agreement, the entrepreneur is obligated to do so.
Explanatory Note :
Subsection (4) Sufficiently clear.(5)
If the negotiation as mentioned under subsection (4) fails to reach an agreement, then the existing company regulations shall remain valid until its expiration.
Explanatory Note :
Subsection (5) Sufficiently clear.Article 112
(1)
Legalization of company regulations by the Minister or appointed official as mentioned under subsection (1) of Article 108 must have performed within a period of no later than 30 (thirty) workdays after the draft of the company regulations is received.
(2)
If the company regulations have met the requirements under subsection (1) and subsection (2) of Article 111 and the period of 30 (thirty) workdays for legalizing them as mentioned under subsection (1) has elapsed but the Minister or the appointed official has not legalized them yet, then the company regulations shall be assumed to have been legalized.
(3)
If the company regulations have not met the requirements under subsection (1) and subsection (2) of Article 111 yet, the Minister or the appointed official must give a written notification to the entrepreneur the correction to the company regulations.
(4)
Within a period of no later than 14 (fourteen) workdays after the date on which the written notification is received by the entrepreneur as mentioned under subsection (3), the entrepreneur is under an obligation to resubmit the corrected version of the company regulations to the Minister or appointed official.
Explanatory Note :
Sufficiently clear.Article 113
(1)
Any changes to the company regulations prior to its expiration can only be made on the basis of an agreement between the entrepreneur and the worker/ labourer’s representatives.
(2)
The company regulations resulting from the agreement as mentioned under subsection (1) shall be legalized by Minister or appointed official.
Explanatory Note :
Sufficiently clear.Article 114
The entrepreneur is under an obligation to notify and explain, as well as deliver, the contents of the company regulations or its changes to the worker/labourer.
Explanatory Note :
The entrepreneur is under an obligation to notify and explain to the worker/ labourer the company regulations and changes made to them. To do so, the entrepreneur may distribute the copies of company regulations to each worker/ labourer, post them at places where workers/ labourers can easily read them. Alternatively, the entrepreneur may also explain them directly to workers/ labourers.Article 115
Provisions concerning procedures for making and legalizing the company regulations shall be regulated with a Ministerial Decision.
Explanatory Note :
Sufficiently clear.Section seven
Collective Labour Agreement
Article 116
(1)
A collective labour agreement shall be made between a trade/ labour union or several trade unions already recorded at a government agency responsible for manpower affairs and an entrepreneur or several entrepreneurs respectively.
Explanatory Note :
Subsection (1) Sufficiently clear.(2)
The collective labour agreement as mentioned under subsection (1) shall be formulated by means of deliberations.
Explanatory Note :
Subsection (2) Work agreements must be made in good faith. This means that there must be honesty, transparency, willingness and awareness on the part of all parties concerned in the making of the agreements without any party forcing or pressurizing another party.(3)
The collective labour agreement as mentioned under subsection (1) shall be made in writing using Latin alphabets and in the Indonesian language.
Explanatory Note :
Subsection (3) If the collective labour agreement is made in Indonesian and translated into another language and then differences in interpretation arise, then the collective labour agreement that use or are written in Indonesian shall apply.(4)
In case the collective labour agreement is not written in the Indonesian language, the collective labour agreement must be translated into Indonesian by a sworn translator and the translation shall be considered to have fulfilled the requirements stipulated under subsection (3).
Explanatory Note :
Subsection (4) Sufficiently clear.Article 117
In case the deliberations as mentioned under subsection (2) of Article 116 fail to reach any consensus, then shall be settled through the procedures of industrial relations disputes settlement.
Explanatory Note :
Settlements through procedures for the settlement of industrial relations disputes may be carried out through mediators, conciliators, arbiters, or institutes for the settlement of industrial relations disputes.Article 118
In one enterprise only 1 (one) collective labour agreement can be made that shall apply to all workers/labourers working in the enterprise.
Explanatory Note :
Sufficiently clear.Article 119
(1)
If there is only one trade/labour union in an enterprise, the only trade/labour union in the enterprise shall have the right to represent workers/labourers in negotiating a collective labour agreement with the entrepreneur provided that more than 50% (fifty percent) of the total number of workers/labourers who work in the enterprise are members of the trade/labour union.
(2)
In case there is only one trade/labour union in an enterprise as mentioned under subsection (1) above but the number of its members does not exceed 50% (fifty percent) of the total workforce in the enterprise, the trade/ labour union may represent workers/labourers in negotiating a collective labour agreement with the entrepreneur provided that a vote that is held on this issue confirms that the trade/labour union wins the support of more than 50% (fifty percent) of the total number of workers in the enterprise.
(3)
If the support of more than 50% (fifty percent) of the enterprise’s total workforce as mentioned under subsection is not obtained, then the trade/labour union concerned may once again put forward its request to negotiate a collective labour agreement with the entrepreneur after a period of 6 (six) months is passed since the vote is held in accordance with the procedures as mentioned under subsection (2).
Explanatory Note :
Sufficiently clear.Article 120
(1)
If there are more than 1 (one) trade/labour union in an enterprise, the trade/labour union that has the right torepresent workers/labourers in negotiating a collective labour agreement with the entrepreneur shall be the one whose members are more than 50% (fifty percent) of the total number of all the workers/labourers who work in the enterprise.
(2)
If the requirement as mentioned under subsection (1) is not fulfilled, then the trade/labour unions in the enterprise may form a coalition until the coalition gets the support of workers numbering more than 50% (fifty percent) of the total number of workers/ labourers in the enterprise so that it is qualified to represent workers/labourers in negotiating a collective labour agreement with the entrepreneur.
(3)
In case what is stipulated under subsection (1) or subsection (2) is not fulfilled, then the trade/ labour unions shall establish a negotiating team whose members shall be determined in proportion to the number of members that each trade/ labour union has.
Explanatory Note :
Sufficiently clear.Article 121
Membership in a trade/labour union as mentioned under Article 119 and Article 120 shall be proved with a membership card.
Explanatory Note :
Sufficiently clear.Article 122
The vote as mentioned under subsection (2) of Article 119 shall be administered by a committee that is composed of workers/ labourers’ representatives and trade/labour union officials witnessed by the government official responsible for manpower affairs and by the entrepreneur.
Explanatory Note :
Sufficiently clear.Article 123
(1)
The validity of the collective labour agreement is for 2 (two) years.
(2)
The effectiveness of the collective labour agreement as mentioned under subsection (1) may be extended for no longer than 1 (one) year based on a written agreement between the entrepreneur and the trade/labour union(s).
(3)
Negotiations for the next collective labour agreement may be started as early as 3 (three) months prior to the expiration of the existing collective labour agreement.
(4)
In case the negotiations as mentioned under subsection (3) fail to result in any agreement, the existing collective labour agreement shall remain valid for a maximum period of 1 (one) year.
Explanatory Note :
Sufficiently clear.Article 124
(1)
A collective labour agreement shall at least contain:
a. The rights and obligations of the employer;
b. The rights and obligations of the trade/ labour union and the worker/ labourer;
c. The period during which and the date starting from which the collective labour agreement takes effect; and
d. The signatures of those involved in making the collective labour agreement.
Explanatory Note :
Subsection (1) Sufficiently clear.(2)
The provisions of a collective labour agreement must not against the prevailing laws and regulations.
Explanatory Note :
Subsection (2) The phrase “must not against any prevailing laws and regulations” means that the contents of the collective labour agreement must not be lower in both quality and quantity than their counterparts or equivalence that are stipulated under the prevailing laws and regulations.(3)
Should the contents of a collective labour agreement against the prevailing laws and regulations as mentioned under subsection (2), then the contradictory stipulations shall be declared null and void by law and the provision under prevailing laws and regulations shall prevail.
Explanatory Note :
Subsection (3) Sufficiently clear.Article 125
If the parties agree to change collective labour agreement, then the changes shall form an inseparable part of the existing collective labour agreement.
Explanatory Note :
Sufficiently clear.Article 126
(1)
The entrepreneur, the trade/labour union and or the worker/ labourer is under an obligation to implement the provisions in the collective labour agreement.
(2)
The entrepreneur and the trade/labour union are under an obligation to inform the contents of the collective labour agreement or any changes made to it to all workers/ labourers.
(3)
The entrepreneur must print and distribute the text of collective labour agreement to each worker/ labourer on the enterprise’s expense.
Explanatory Note :
Sufficiently clear.Article 127
(1)
Any work agreement made by the entrepreneur and the worker/ labourer shall not against the collective labour agreement.
(2)
Should there be any provisions under the work agreement mentioned under subsection (1) against the collective labour agreement, then those particular provisions in the work agreement shall be declared null and void by law and the provision on the collective labour agreement shall prevail.
Explanatory Note :
Sufficiently clear.Article 128
If a work agreement does not contain the rules and regulations that are stipulated in the collective labour agreement, then the stipulations specified in the collective labour agreement shall prevail.
Explanatory Note :
Sufficiently clear.Article 129
(1)
The entrepreneur is prohibited from replacing the collective labour agreement with the company regulations as long as there is a trade/ labour union in the enterprise.
(2)
If there is no more trade/ labour union in the enterprise and the collective labour agreement is replaced by the company regulations, then the provisions in the company regulations shall by no means be inferior to the provisions in the collective labour agreement.
Explanatory Note :
Sufficiently clear.Article 130
(1)
If a collective labour agreement that has expired will be extended or renewed and there is only 1 (one) trade/labour union in the enterprise, then the extension or renewal of the collective labour agreement shall not require the requirements under Article 119.
(2)
If a collective labour agreement that has expired will be extended or renewed and there are more than 1 (one) trade/ labour union in the enterprise and the trade/ labour union that negotiated in the last agreement no longer meet the requirement under subsection (1) of Article 120, the extension or renewal of the collective labour agreement shall be made by the trade/ labour union whose members are more than 50% (fifty percent) of the total number of workers/ labourers in the enterprise together with the trade/ labour union that negotiated in the last agreement by establishing a negotiating team whose members are proportional to the members of the trade/ labour unions represented in the team.
(3)
If the expired collective labour agreement will be extended or renewed and there are more than 1 (one) trade/labour unions in the enterprise and none of them meet the requirement under subsection (1) of Article 120, then the extension or renewal of the collective labour agreement shall be made in accordance with the provision under subsection (2) and subsection (3) of Article 120.
Explanatory Note :
Sufficiently clear.Article 131
(1)
In case of the dissolution of a trade/labour union or the transfer of the enterprise’s ownership, then the existing collective labour agreement shall remain valid until it expires.
(2)
If an enterprise with a collective labour agreement merges with another enterprise with another collective labour agreement, then the prevailing collective labour agreement is the one that gives the worker/labourer more advantages.
(3)
If an enterprise that has a collective labour agreement merges with another enterprise that has no collective labour agreement, then the collective labour agreement of the enterprise that has it shall apply to the enterprise resulted from the merger until the collective labour agreement expires.
Explanatory Note :
Sufficiently clear.Article 132
(1)
A collective labour agreement shall take effect on the day it is signed unless otherwise stated in the relevant collective labour agreement.
(2)
A collective labour agreement that has been signed by the parties must be registered by the entrepreneur at a government agency responsible for manpower affairs.
Explanatory Note :
Sufficiently clear.Article 133
The provisions concerning the requirements and procedures for making, extending, changing and registering the collective labour agreement shall be regulated with a Ministerial Decision.
Explanatory Note :
Sufficiently clear.Article 134
In order to realize the rights and obligations of both the worker and the entrepreneur, the Government is under an obligation to control the implementation of manpower laws and regulations and ensure their observance and enforcement.
Explanatory Note :
Sufficiently clear.Article 135
The implementation of manpower laws and regulations in order to realize industrial relations is the responsibility of the worker/labourer, the entrepreneur and the government.
Explanatory Note :
Sufficiently clear.Section Eight
INSTITUTIONS/AGENCIES FOR THE SETTLEMENT
OF INDUSTRIAL RELATIONS DISPUTES
OF INDUSTRIAL RELATIONS DISPUTES
Subsection 1
Industrial Relations Disputes
Article 136
(1)
The entrepreneur and the worker/labourer or the trade/ labour union are under an obligation to make efforts to settle any industrial relations dispute they have through deliberations aimed at reaching a consensus.
(2)
If the deliberations as mentioned under subsection (1) fail to reach a consensus, then the entrepreneur and the worker/labourer or the trade/labour union shall have the industrial relations dispute settled through procedures for the settlement of industrial relations disputes that are regulated by law.
Explanatory Note :
Sufficiently clear.Subsection 2
Strike
Article 137
Strike is a fundamental right of workers/labourers and trade/labour unions that shall be staged legally, orderly and peacefully as a result of failed negotiation.
Explanatory Note :
What is meant by failed negotiation under this Article is that no agreement to settle the industrial relations dispute is reached because the entrepreneur is not willing to negotiate or because the negotiation ends in deadlock. The term peacefully and orderly means that the strike must not disrupt security and public order and/or threaten the life safety and property of the entreprise, entrepreneur, other people or other members of the general public.Article 138
(1)
The workers/labourers and/or trade/labour unions intending to invite other workers/ labourers to strike whilst the strike is going on shall be performed without violating laws.
(2)
The workers/labourers who are invited to join the strike as mentioned under subsection (1) may accept or decline the invitation.
Explanatory Note :
Sufficiently clear.Article 139
The implementation of strike staged by the workers/ labourers of enterprises that serve the public interest and/or enterprises whose types of activities, will lead to the endangerment of human lives, shall be arranged in such a way so as not to disrupt public interests and/or endanger the safety of other people.
Explanatory Note :
Enterprises that serve the public interest and/or enterprises whose types of activities, when interrupted by a strike, will lead to the endangerment of human lives are those running hospitals, fire department, those providing railway service, those in charge of sluices, those in charge of regulating air traffic, and those in charge of sea traffic. That the strike shall be arranged in such a way so as not to disrupt public interests and/ or endanger the safety of other people means that the strike shall be carried out by workers/ labourers who are not on duty.Article 140
(1)
Within a period of no less than 7 (seven) days prior to the actual realization of a strike, workers/ labourers and trade/ labour unions intending to stage a strike are under an obligation to give a written notification of the intention to the entrepreneur and the local government agency responsible for manpower affairs.
Explanatory Note :
Subsection (1) Sufficiently clear.(2)
The notification as mentioned under subsection (1) shall at least contain:
a. The time (day, date and the hour) at which they will start and end the strike;
b. The venue of the strike;
c. Their reasons for the strike; and
d. The signatures of the chairperson and secretary of the striking union and/or the signature of each of the chairpersons and secretaries of the unions participating in the strike, who shall be held responsible for the strike.
Explanatory Note :
Subsection (2) Point a Sufficiently clear. Point b Places for staging a strike refer to places chosen by those responsible for the strike for staging the strike in a way that will not prevent other workers/ labourers from performing work. Point c Sufficiently clear. Point d Sufficiently clear.(3)
If the strike is staged by workers/ labourers who are not members of any trade/labour union, the notification as mentioned under subsection (2) shall be signed by workers/labourers’ representatives who have been appointed to coordinate and/or responsible for the strike.
Explanatory Note :
Subsection (3) Sufficiently clear.(4)
If a strike is performed not pursuant to the requirements as mentioned under subsection (1), then in order to save production equipment and enterprise assets, the entrepreneur may take temporary action by:
a. Prohibiting striking workers/labourers from being present at locations where production processes normally take place; or
b. Prohibiting striking workers/labourers from being present at the enterprise’s premise if necessary.
Explanatory Note :
Subsection (4) Sufficiently clear.Article 141
(1)
A representative of the government agency and the management who receives the letter notifying the intention to strike as mentioned under Article 140 is under an obligation to issue a receipt of acknowledgment.
(2)
Prior to and during the strike, the government agency responsible for manpower affairs is under an obligation to solve problem that leads to the emergence of strike by arranging a meeting and negotiate between the disputing parties.
(3)
If the discussion as mentioned under subsection (2) reaching an agreement, the agreement shall be made and signed by the parties and a responsible official from the government agency responsible for manpower affairs shall serve as witness.
(4)
In case the discussion as mentioned under subsection (2) results in no agreement, the official from the government agency responsible for manpower affairs shall immediately refer the problem(s) that cause(s) the strike to the authorized institution for the settlement of industrial relations disputes.
(5)
In case the discussion results in no agreement as mentioned under subsection (4), then on the basis of negotiation between the entrepreneur and the trade/ labour union(s) responsible for the strike or the bearer(s) of responsibility for the strike, the strike may be continued or terminated temporarily or terminated at all.
Explanatory Note :
Sufficiently clear.Article 142
(1)
Any strike that is staged without fulfilling the requirement under Article 139 and Article 140 is illegal.
(2)
The legal consequences of staging an illegal strike as mentioned under subsection (1) shall be regulated with a Ministerial Decision.
Explanatory Note :
Sufficiently clear.Article 143
(1)
Nobody is allowed to prevent workers/labourers and trade/ labour unions from using their right to strike legally, orderly and peacefully.
Explanatory Note :
Subsection (1) What is meant by the word ‘to prevent’ under this subsection is preventing the use of the right to strike by means of, among others: a. Punishment; b. Intimidation, in whatever form; or c. Transfer to another position or place with the intention to put the transferee at a disadvantage(2)
It is prohibited to arrest and/or detain workers/labourers and union officials who are on strike legally, orderly and peacefully pursuant to the prevailing laws and regulations.
Explanatory Note :
Subsection (2) Sufficiently clear.Article 144
In the event of a strike performed pursuant to Article 140, the entrepreneur is prohibited from:
a. Replacing striking workers/labourers with other workers/labourers from outside of the enterprise; or
b. Imposing sanctions on or taking retaliatory actions in whatever form against striking workers/labourers and union officials during and after the strike is performed.
Explanatory Note :
Sufficiently clear.Article 145
Workers/labourers who stage a strike legally in order to demand the fulfillment of their normative rights, which the entrepreneur has indeed violated, then they shall have their wages.
Explanatory Note :
The phrase their normative rights, which the entrepreneur has indeed violated means that the entrepreneur is, clearly and as a matter of fact, unwilling to fulfill their obligations as mentioned and/or as stipulated under work agreements, company regulations, collective labour agreements or labour legislation even though their has been ordered to do so by the government official responsible for labour/ manpower affairs. The payment of the wages of striking workers/ labourers as mentioned under this Article shall not eliminate the imposition of sanction on entrepreneurs who violate normative provisions.Subsection 3
Company Closure (lock-out)
Article 146
(1)
Lockout is a fundamental right of entrepreneurs to prevent their workforce either in part or in whole from performing work as a result from failed negotiation.
Explanatory Note :
Subsection (1) Sufficiently clear.(2)
Entrepreneurs are not justified to lock out their workforce as retaliation for normative demands raised by workers/ labourers and/or trade/ labour unions.
Explanatory Note :
Subsection (2) Sufficiently clear.(3)
Lockouts must be performed pursuant to the prevailing laws and regulations.
Explanatory Note :
Subsection (3) If the lockout is carried out illegally or as retaliation for a legal strike which rightfully demands the fulfillment of normative rights, the entrepreneur is under an obligation to pay the worker/ labourer’s wages.Article 147
Lockouts shall be prohibited from taking place at enterprises that serve the public interest and or enterprises whose types of activities, when interrupted by lockouts, will endanger human lives, including hospitals, enterprises that provide networks of clean water supply to the public, centers of telecommunications control, centers electricities, oil-and- gas processing industries, and trains.
Explanatory Note :
Sufficiently clear.Article 148
(1)
An entrepreneur who intends to perform a lockout is under an obligation to give a written notification of the lockout to workers/ labourers and/or trade/ labour union and the local government agency responsible for manpower affairs of no less than 7 (seven) workdays before the lockout takes place.
(2)
The lockout notification as mentioned under subsection (1) shall at least contain:
a. The time (day, date and hour) will start and end the lockout; and
b. The reason and cause for the lockout.
(3)
The notification as mentioned under subsection (1) shall be signed by the entrepreneur and/or the management of the relevant enterprise.
Explanatory Note :
Sufficiently clear.Article 149
(1)
Workers/labourers or trade/labour unions and government agencies responsible for manpower affairs that directly receive a written notification of the lockout as mentioned under Article 148 must issue receipts acknowledging which state the day, the date, and the hour received.
(2)
Before and during the lockout, the government agency responsible for manpower affairs shall immediately try to solve the problem that causes of the lockout by arranging a meeting and between the disputing parties discussing.
(3)
If the discussion as mentioned under subsection (2) reaching an agreement, an agreement shall be made and signed by the parties and also by a official from the government agency responsible for manpower affairs who shall serve as witness.
(4)
In case the discussion as mentioned under subsection (2) results in no agreement, the official from the government agency responsible for manpower affairs shall immediately refer the problem that cause the strike to the authorized institution for the settlement of industrial relations disputes.
(5)
In case the discussion results in no agreement as mentioned under subsection (4), then, on the basis of negotiation between the entrepreneur and the trade/ labour union, the lockout may be continued or terminated temporarily or terminated at all.
(6)
Notification as mentioned under subsection (1) and subsection (2) of Article 148 is not needed if:
a. The workers/labourers or trade/labour unions violate the strike procedures as mentioned under Article 140;
b. The workers/labourers or trade/labour unions violate the normative provisions stipulated under the work agreements, company regulations, collective labour agreements or prevailing laws and regulations.
Explanatory Note :
Sufficiently clear.CHAPTER XII
TERMINATION OF EMPLOYMENT
Article 150
The provisions concerning termination of employment under this act shall cover termination of employment that happens in a business undertaking which is a legal entity or not, a business undertaking owned by an individual, by a partnership or by a legal entity, either owned by the private sector or by the State, as well as social undertakings and other undertakings which have administrators/officials and employ people by paying them wages or other forms of remuneration.
Explanatory Note :
Sufficiently clear.Article 151
(1)
The entrepreneur, the worker/labourer, the trade/labour union, and the Government shall make every effort to prevent termination of employment.
Explanatory Note :
Subsection (1) The phrase make all efforts under this subsection refers to positive activities or actions which may eventually prevent termination of employment from happening, including, among others, arrangement of working time, saving measures, restructuring or reorganization of working methods, and efforts to develop the worker/ labourer.(2)
In the event that termination of employment is unavoidable, the intention and reasons for termination of employment shall be notified by the entrepreneur to the worker/labourer and/or the trade/labour union.
Explanatory Note :
Subsection (2) Sufficiently clear.(3)
In the event that the worker/labourer has been notified and rejects the termination of employment, the settlement of termination of employment shall be conducted through bipartite negotiations between the entrepreneur and the worker/labourer and/or the trade/labour union.
Explanatory Note :
Subsection (3) Sufficiently clear.(4)
In the event that the bipartite negotiations as referred to in paragraph (3) do not reach an agreement, the termination of employment shall be settled through the next stage in accordance with the mechanism for the settlement of industrial relations disputes.
Explanatory Note :
Subsection (4) Sufficiently clear.Article 151A
The notification as referred to in Article 151 paragraph (2) is not required if:
- the worker/laborer resigns voluntarily;
- the employment relationship between the worker/laborer and the employer ends in accordance with a fixed-term employment agreement;
- the worker/laborer reaches retirement age as stipulated in the employment agreement, company regulations, or collective labor agreement; or
- the worker/laborer passes away.
Explanatory Note :
Article 151A Sufficiently clear.Article 152
Article 152 is deleted.
Explanatory Note :
Article 152 is deleted.Article 153
(1)
The entrepreneur is prohibited from terminating the Employment Relationship with the Worker on the following grounds:
a. being absent from work due to illness with a doctor’s certificate for a period not exceeding 12 (twelve) consecutive months;
b. being absent from work due to performing obligations to the state in accordance with statutory regulations;
c. performing religious duties as required by their religion;
d. marriage;
e. pregnancy, childbirth, miscarriage, or breastfeeding their baby;
f. having a blood relationship and/or marital relationship with another Worker within the same Company;
g. establishing, becoming a member of, and/or serving as an officer of a Trade Union/Labor Union, or engaging in Trade Union/Labor Union activities outside working hours, or during working hours with the entrepreneur’s consent, or in accordance with the provisions of the Work Agreement, Company Regulation, or Collective Work Agreement;
h. reporting the entrepreneur to the authorities regarding criminal acts committed by the entrepreneur;
i. differences in ideology, religion, political affiliation, ethnicity, race, class, gender, physical condition, or marital status; and
j. suffering from permanent disability, illness due to a work accident, or illness resulting from the Employment Relationship as stated by a doctor whose recovery period cannot yet be determined.
(2)
Termination of Employment carried out on the grounds as referred to in subsection (1) shall be null and void by law, and the entrepreneur shall be obligated to reemploy the affected Worker.
Explanatory Note :
Sufficiently clear.Article 154
Article 154 is deleted.
Explanatory Note :
Article 154 is deleted.Article 154A
(1)
Termination of Employment may occur for the following reasons:
- The Company carries out a merger, consolidation, acquisition, or division, and the Worker/Laborer is not willing to continue the Employment Relationship, or the Employer is not willing to accept the Worker/Laborer;
- The Company carries out efficiency measures followed by Company closure or not followed by Company closure caused by Company losses;
- The Company closes down due to continuous losses for 2 (two) consecutive years;
- The Company closes down due to force majeure;
- The Company is in a state of suspension of debt payment obligations;
- The Company is declared bankrupt;
- There is a petition for Termination of Employment submitted by the Worker/Laborer on the grounds that the Employer has committed any of the following acts:
- assaulting, grossly insulting, or threatening the Worker/Laborer;
- persuading and/or instructing the Worker/Laborer to commit acts contrary to statutory regulations;
- failing to pay Wages at the agreed time for 3 (three) consecutive months or more, even though the Employer pays the Wages on time afterwards;
- failing to fulfill obligations agreed upon with the Worker/Laborer;
- ordering the Worker/Laborer to perform work outside of what has been agreed upon in the Work Agreement; or
- assigning work that endangers the life, safety, health, or decency of the Worker/Laborer, while such work is not stipulated in the Work Agreement;
- There is a decision from the Industrial Relations Dispute Settlement Institution stating that the Employer has not committed the acts as referred to in point g, based on the petition submitted by the Worker/Laborer, and the Employer decides to terminate the Employment Relationship;
- The Worker/Laborer resigns voluntarily and must fulfill the following requirements:
- submit a written resignation at the latest 30 (thirty) days before the effective date of resignation;
- is not bound by a service period agreement; and
- continues to fulfill their obligations until the effective date of resignation;
- The Worker/Laborer is absent for 5 (five) or more consecutive working days without written explanation supported by valid evidence, after being properly summoned in writing by the Employer at least 2 (two) times;
- The Worker/Laborer violates provisions stipulated in the Work Agreement, Company Regulation, or Collective Labor Agreement, and has previously been given the first, second, and third written warnings consecutively, each of which is valid for a maximum period of 6 (six) months unless otherwise stipulated in the Work Agreement, Company Regulation, or Collective Labor Agreement;
- The Worker/Laborer is unable to perform work for 6 (six) months due to detention by the authorities for allegedly committing a criminal act;
- The Worker/Laborer suffers from prolonged illness or disability due to a work accident and is unable to perform work after exceeding the period of 12 (twelve) months;
- The Worker/Laborer reaches retirement age; or
- The Worker/Laborer passes away.
(2)
In addition to the reasons for Termination of Employment as referred to in paragraph (1), other reasons for Termination of Employment may be stipulated in the Work Agreement, Company Regulation, or Collective Labor Agreement as referred to in Article 61 paragraph (1).
(3)
Further provisions regarding procedures for Termination of Employment shall be regulated by Government Regulation.
Explanatory Note :
Sufficiently clear.Article 155
Article 155 is deleted.
Explanatory Note :
Article 155 is deleted.Article 156
(1)
In the event of Termination of Employment, the entrepreneur shall be obligated to pay severance pay and/or service appreciation pay, as well as compensation for rights that should have been received.
(2)
Severance pay as referred to in subsection (1) shall be granted under the following conditions:
a. for a period of employment of less than 1 (one) year, 1 (one) month's wage;
b. for a period of employment of 1 (one) year or more but less than 2 (two) years, 2 (two) months’ wage;
c. for a period of employment of 2 (two) years or more but less than 3 (three) years, 3 (three) months’ wage;
d. for a period of employment of 3 (three) years or more but less than 4 (four) years, 4 (four) months’ wage;
e. for a period of employment of 4 (four) years or more but less than 5 (five) years, 5 (five) months’ wage;
f. for a period of employment of 5 (five) years or more but less than 6 (six) years, 6 (six) months’ wage;
g. for a period of employment of 6 (six) years or more but less than 7 (seven) years, 7 (seven) months’ wage;
h. for a period of employment of 7 (seven) years or more but less than 8 (eight) years, 8 (eight) months’ wage;
i. for a period of employment of 8 (eight) years or more, 9 (nine) months’ wage.
(3)
Service appreciation pay as referred to in subsection (1) shall be granted under the following conditions:
a. for a period of employment of 3 (three) years or more but less than 6 (six) years, 2 (two) months’ wage;
b. for a period of employment of 6 (six) years or more but less than 9 (nine) years, 3 (three) months’ wage;
c. for a period of employment of 9 (nine) years or more but less than 12 (twelve) years, 4 (four) months’ wage;
d. for a period of employment of 12 (twelve) years or more but less than 15 (fifteen) years, 5 (five) months’ wage;
e. for a period of employment of 15 (fifteen) years or more but less than 18 (eighteen) years, 6 (six) months’ wage;
f. for a period of employment of 18 (eighteen) years or more but less than 21 (twenty-one) years, 7 (seven) months’ wage;
g. for a period of employment of 21 (twenty-one) years or more but less than 24 (twenty-four) years, 8 (eight) months’ wage;
h. for a period of employment of 24 (twenty-four) years or more, 10 (ten) months’ wage.
(4)
Compensation for entitlements as referred to in subsection (1) includes:
a. unused and unexpired annual leave;
b. transportation expenses for the Worker and their family to return to their place of origin where the Worker was recruited; and
c. other matters stipulated in the Work Agreement, Company Regulation, or Collective Work Agreement.
(5)
Further provisions regarding the payment of severance pay, service appreciation pay, and compensation for entitlements as referred to in subsections (1), (2), (3), and (4) shall be regulated by Government Regulation.
Explanatory Note :
Sufficiently clear.Article 157
(1)
The wage components used as the basis for calculating severance pay and service appreciation pay consist of:
a. basic wage; and
b. fixed allowances provided to the Worker and their family.
(2)
In case the worker/ labourer’s wages is paid on the basis of daily calculation, the monthly wage shall be equal to 30 (thirty) times the daily wage.
(3)
In case the worker/ labourer’s wage is paid are calculated based on units of output, the monthly wage shall be equal to the average earnings over the last 12 (twelve) months.
(4)
If the monthly wage as referred to in subsection (3) is lower than the minimum wage, the wage used as the basis for calculation shall be the applicable minimum wage in the area where the Company is domiciled.
Explanatory Note :
Sufficiently clear.Article 157A
(1)
During the settlement of Industrial Relations Disputes, entrepreneurs and workers/laborers must continue to fulfill their obligations.
Explanatory Note :
Subsection (1) Sufficiently clear.(2)
Entrepreneurs may impose a suspension on workers/laborers who are undergoing the employment termination process, while still paying wages and other entitlements that the workers/laborers are ordinarily entitled to.
Explanatory Note :
Subsection (2) What is meant by “other entitlements” are other rights as stipulated in the Work Agreement, Company Regulations, or Collective Work Agreement. Example: unused and non-expired leave rights.(3)
The fulfillment of obligations as referred to in subsection (1) shall continue until the resolution process of the Industrial Relations Dispute is completed at the appropriate level.
Explanatory Note :
Subsection (3) What is meant by “at the appropriate level” is the settlement of disputes at the level of bipartite, or mediation/conciliation/arbitration, or the Industrial Relations Court.Article 158
Article 158 is deleted.
Explanatory Note :
Article 158 is deleted.Article 159
Article 159 is deleted.
Explanatory Note :
Article 159 is deleted.Article 160
(1)
In the event that a Worker/Laborer is detained by the competent authority due to suspicion of committing a criminal offense, the entrepreneur is not obligated to pay Wages. However, the entrepreneur is required to provide financial assistance to the Worker/Laborer’s family members who are dependents, according to the following provisions:
a. for 1 (one) dependent, 25% (twenty-five percent) of Wages;
b. for 2 (two) dependents, 35% (thirty-five percent) of Wages;
c. for 3 (three) dependents, 45% (forty-five percent) of Wages;
d. for 4 (four) or more dependents, 50% (fifty percent) of Wages.
Explanatory Note :
Subsection (1) The family members of the Worker/Laborer who are considered dependents include the spouse, children, or other individuals who are legally recognized as dependents based on the Employment Agreement, Company Regulations, or Collective Work Agreement.(2)
The assistance referred to in subsection (1) shall be provided for a maximum period of 6 (six) months, calculated from the first day the Worker/Laborer is detained by the competent authority.
Explanatory Note :
Subsection (2) Sufficiently clear.(3)
The entrepreneur may terminate the employment relationship with the Worker/Laborer after 6 (six) months if the Worker/Laborer is unable to perform their work due to the ongoing criminal proceedings as referred to in subsection (1).
Explanatory Note :
Subsection (3) Sufficiently clear.(4)
In case the court decides the criminal case prior to the expiration of the 6 (six) month period as mentioned under subsection (3) and the worker/labourer is declared not guilty, the employer is obliged to reemploy the worker/labourer
Explanatory Note :
Subsection (4) Sufficiently clear.(5)
In case the court decides the criminal case prior to the expiration of the 6 (six) month period and the worker/labourer is declared guilty, the employer may terminate the employment relationship with the worker/labourer concerned.
Explanatory Note :
Subsection (5) Sufficiently clear.Article 161
Article 161 is deleted.
Explanatory Note :
Article 161 is deleted.Article 162
Article 162 is deleted.
Explanatory Note :
Article 162 is deleted.Article 163
Article 163 is deleted.
Explanatory Note :
Article 163 is deleted.Article 164
Article 164 is deleted.
Explanatory Note :
Article 164 is deleted.Article 165
Article 165 is deleted.
Explanatory Note :
Article 165 is deleted.Article 166
Article 166 is deleted.
Explanatory Note :
Article 166 is deleted.Article 167
Article 167 is deleted.
Explanatory Note :
Article 167 is deleted.Article 168
Article 168 is deleted.
Explanatory Note :
Article 168 is deleted.Article 169
Article 169 is deleted.
Explanatory Note :
Article 169 is deleted.Article 170
Article 170 is deleted.
Explanatory Note :
Article 170 is deleted.Article 171
Article 171 is deleted.
Explanatory Note :
Article 171 is deleted.Article 172
Article 172 is deleted.
Explanatory Note :
Article 172 is deleted.CHAPTER XIII
MANPOWER DEVELOPMENT
Article 173
(1)
The government shall make efforts to develop and build up elements and activities related to manpower.
Explanatory Note :
Subsection (1) The term develop shall refer to activities carried out effectively and efficiently to get better results in order to improve and develop all manpower-related activities.(2)
The efforts to develop manpower-related elements and activities as mentioned under subsection (1) may invite participation of entrepreneurs’ organizations, trade/labour unions and other related organizations of professions.
Explanatory Note :
Subsection (2) Sufficiently clear.(3)
The efforts to develop manpower as mentioned under subsection (1) and subsection (2) shall be carried out in a well-integrated and well-coordinated way.
Explanatory Note :
Subsection (3) Those who shall perform the coordination as mentioned under this subsection are the government agency (agencies) responsible for labour/ manpower affairs.Article 174
For the purpose of manpower development, the government, associations of entrepreneurs, trade/ labour unions and other professions organizations may establish international cooperation in the field of labour according to the prevailing laws and regulations.
Explanatory Note :
Sufficiently clear.Article 175
(1)
The government may award persons or institutions that have done meritorious service in the field of manpower development.
(2)
The award as mentioned under subsection (1) may be given in the form of a charter, money and or other forms of reward.
Explanatory Note :
Sufficiently clear.CHAPTER XIV
LABOUR INSPECTION
Article 176
Labour inspection shall be carried out by government labour inspectors who have the competence and independency to ensure the implementation of the labour laws and regulations.
Explanatory Note :
The word “independency” attributable to labour inspectors under this subsection shall mean that in making decision, labour inspectors are not under the influence of other parties.Article 177
The labour inspectors as mentioned under Article 176 shall be determined by Minister or appointed officials.
Explanatory Note :
Sufficiently clear.Article 178
(1)
Labour inspection shall be carried out by a separate working unit of a government agency whose scope of duty and responsibility are in the field of labour at the Central Government, Provincial Governments and District/ City Governments.
(2)
The implementation of labour inspection as mentioned under subsection (1) shall be regulated further with a Presidential Decision.
Explanatory Note :
Sufficiently clear.Article 179
(1)
The working units for labour inspection as mentioned under Article 178 at the Provincial Governments and District/City Governments are obliged to submit reports on the implementation of labour inspection to Minister.
(2)
Procedures for submitting the reports as mentioned under subsection (1) shall be regulated with a Ministerial Decision.
Explanatory Note :
Sufficiently clear.Article 180
Provisions concerning the requirements for the appointment of, the rights and obligations of, the authority of, labour inspectors as mentioned under Article 176 pursuant to the prevailing laws and regulations.
Explanatory Note :
Sufficiently clear.Article 181
In carrying out their duties as mentioned under Article 176, labour inspectors are obliged:
a. To keep secret everything that, by its nature, needs or is worthy to be kept secret;
b. To refrain from abusing their authority.
Explanatory Note :
Sufficiently clear.CHAPTER XV
INVESTIGATION
Article 182
(1)
Special authority to act as civil servant investigators may also be given, in addition to the one assigned to the investigating officials of the Police of the State of the Republic of Indonesia, to labour inspectors in accordance with the prevailing laws and regulations.
(2)
The civil servant investigators as mentioned under subsection (1) shall have the authority:
a. To examine whether or not reports and explanation about labour crimes are true;
b. To investigate individuals suspected of having committed a labour crime;
c. To require explanations and evidences from persons or legal entity considered to be relevant to the labour crime being investigated;
d. To examine or confiscate objects or evidences found in a case of labour crime;
e. To examine papers and/or other documents related with labour crimes;
f. To request the help of experts in performing labour- related criminal investigations; and
g. To stop investigation if there is not enough evidence to prove that a labour crime has been committed.
(3)
The authority of civil servant investigators as mentioned under subsection (2) shall be exercised in accordance with the prevailing laws and regulations.
Explanatory Note :
Sufficiently clear.CHAPTER XVI
CRIMINAL PROVISIONS AND
ADMINISTRATIVE SANCTIONS
ADMINISTRATIVE SANCTIONS
Section one
Criminal Provisions
Article 183
(1)
Whosoever violates the provision under Article 74 shall be subjected to a criminal sanction in jail for a minimum of 2 (two) years and a maximum of 5 (five) years and/or a fine of a minimum of Rp200,000,000 (two hundred million rupiah) and a maximum of Rp500,000,000 (five hundred million rupiah).
(2)
The criminal action mentioned under subsection (1) shall be legally categorized as a felony.
Explanatory Note :
Sufficiently clear.Article 184
Article 184 is deleted.
Explanatory Note :
Article 184 is deleted.Article 185
(1)
Any person who violates the provisions referred to in Article 42 subsection (2), Article 68, Article 69 subsection (2), Article 80, Article 82, Article 88A subsection (3), Article 88E subsection (2), Article 143, Article 156 subsection (1), or Article 160 subsection (4), shall be subject to criminal sanctions in the form of imprisonment for a minimum of 1 (one) year and a maximum of 4 (four) years and/or a fine of at least IDR 100,000,000.00 (one hundred million rupiah) and at most IDR 400,000,000.00 (four hundred million rupiah).
(2)
The criminal act referred to in subsection (1) constitutes a felony.
Explanatory Note :
Sufficiently clear.Article 186
(1)
Any person who violates the provisions referred to in Article 35 subsection (2) or subsection (3), or Article 93 subsection (2), shall be subject to criminal sanctions in the form of imprisonment for a minimum of 1 (one) month and a maximum of 4 (four) years and/or a fine of at least IDR 10,000,000.00 (ten million rupiah) and at most IDR 400,000,000.00 (four hundred million rupiah).
(2)
The criminal act referred to in subsection (1) constitutes a misdemeanor.
Explanatory Note :
Sufficiently clear.Article 187
(1)
Any person who violates the provisions as referred to in Article 45 subsection (1), Article 67 subsection (1), Article 71 subsection (2), Article 76, Article 78 subsection (2), Article 79 subsection (1), subsection (2), or subsection (3), Article 85 subsection (3), or Article 144 shall be subject to criminal sanctions in the form of imprisonment for a minimum of 1 (one) month and a maximum of 12 (twelve) months and/or a fine of at least Rp10,000,000.00 (ten million rupiah) and a maximum of Rp100,000,000.00 (one hundred million rupiah).
(2)
The criminal offense referred to in subsection (1) constitutes a misdemeanor.
Explanatory Note :
Sufficiently clear.Article 188
(1)
Any person who violates the provisions as referred to in Article 38 subsection (2), Article 63 subsection (1), Article 78 subsection (1), Article 108 subsection (1), Article 111 subsection (3), Article 114, or Article 148 shall be subject to criminal sanctions in the form of a fine of at least Rp5,000,000.00 (five million rupiah) and a maximum of Rp50,000,000.00 (fifty million rupiah).
(2)
The criminal offense referred to in subsection (1) constitutes a misdemeanor.
Explanatory Note :
Sufficiently clear.Article 189
Sanctions imposed on entrepreneurs in the form of a jail, prison sentence and/or a fine do not release the entrepreneurs from their obligations to pay entitlements and/or compensations to the workers/ labourers.
Explanatory Note :
Sufficiently clear.Section two
Administrative Sanctions
Article 190
(1)
The Central Government or Regional Governments, according to their authority, may impose administrative sanctions for violations of the provisions regulated in Article 5, Article 6, Article 14 subsection (1), Article 15, Article 25, Article 37 subsection (2), Article 38 subsection (2), Article 42 subsection (1), Article 47 subsection (1), Article 61A, Article 66 subsection (4), Article 87, Article 92, Article 106, Article 126 subsection (3), or Article 160 subsection (1) or subsection (2) of this Law and its implementing regulations.
(2)
Further provisions regarding administrative sanctions as referred to in subsection (1) shall be regulated by Government Regulation.
Explanatory Note :
Sufficiently clear.CHAPTER XVII
TRANSITIONAL PROVISIONS
Article 191
All implementing regulations that regulate manpower affairs shall remain effective as long as they do not against and/ or have not been replaced by the new regulations made based on this act.
Explanatory Note :
Implementing regulations which regulate matters pertaining to labour/ manpower under this act are implementing regulations from various labour/ manpower laws irrespective of whether they have been revoked or are still in place and valid. In order to avoid legal vacuum, this act shall apply to implementing regulations that have not been revoked or replaced on the basis of this act as long as they are not against this act. Likewise, if a labour incident or case happens before the application of this act and is still in the process of being settled through an institute for the settlement of industrial relations disputes, then in accordance with the principle of legality, implementing regulations that are in existence prior to the application of this act shall be used to settle the incident or case.Article 191A
Upon the enactment of this Law:
a. For the first time, the applicable minimum wage shall be the minimum wage that has been stipulated under the implementing regulation of Law Number 13 of 2003 concerning Manpower, which regulates wage determination.
Explanatory Note :
Point a What is meant by "for the first time" is the 2021 minimum wage determined in 2020.
b. For entrepreneurs who have already provided wages higher than the minimum wage set prior to this Law, the entrepreneur is prohibited from reducing or lowering the wage.
Explanatory Note :
Point b Sufficiently clear.CHAPTER XVIII
CLOSING PROVISIONS
Article 192
At the time this act starts to take effect, then:
- Ordinance concerning the Mobilization of Indonesian People To Perform Work Outside of Indonesia (Staatsblad Year 1887 Number 8);
- Ordinance dated December 17, 1925, which is a regulation concerning Restriction of Child Labour and Night Work for Women (Staatsblad Year 1925 Number 647);
- Ordinance Year 1926, which is a regulation which regulates the Employment of Child and Youth on Board of A Ship (Staatsblad Year 1926 Number 87);
- Ordinance dated May 4, 1936 concerning Ordinance To Regulate Activities To Recruit Candidates/ Prospective Workers (Staatsbald Year 1936 Number 208);
- Ordinance concerning the Repatriation of Labourers Who Come From or Are Mobilized From Outside of Indonesia (Staatsblad Year 1939 Number 545);
- Ordinance Number 9 Year 1949 concerning Restriction of Child Labour (Staatsblad Year 1949 Number 8);
- Act Number 1 Year 1951 concerning the Declaration of the Enactment of Employment Act Year 1948 Number 12 From the Republic of Indonesia For All Indonesia (StateGazette Year 1951 Number 2);
- Act Number 21 Year 1954 concerning Labour Agreement Between Labour Union and Employer (State Gazette Year 1954 Number 69, Supplement to State Gazette Number598a);
- Act Number 3 Year 1958 concerning the Placement of Foreign Workers (State Gazette Year 1958 Number 8);
- Act Number 8 Year 1961 concerning Compulsory Work for University Graduates Holding Master’s Degree (State Gazette Year 1961 Number 207, Supplement to State Gazette Number 2270);
- Act Number 7 Year 1963 Serving as the Presidential Resolution on the Prevention of Strike and/or Lockout at Vital Enterprises, Government Agencies In Charge of Public Service and Agencies (State Gazette Year 1963 Number 67);
- Act Number 14 Year 1969 concerning Fundamental Provisions concerning Manpower (State Gazette Year 1969 Number 55, Supplement to State Gazette Number 2912);
- Act Number 25 Year 1997 concerning Manpower (State Gazette Year 1997 Number 73, Supplement to State Gazette Number 3702);
- Act Number 11 Year 1998 concerning the Change in the Applicability of Act Number 25 Year 1997 concerning Manpower (State Gazette Year 1998 Number 184, Supplement to State Gazette Number 3791);
- Act Number 28 Year 2000 concerning the Establishment of Government Regulation in lieu of Law Number 3 Year 2000 concerning Changes to Act Number 11 Year 1998 concerning the Change in the Applicability of Act Number 25 Year 1997 concerning Manpower into Act (State Gazette Year 2000 Number 204, Supplement to State Gazette Number 4042).
Explanatory Note :
Sufficiently clear.Article 193
This act shall be effective upon the date of its promulgation.
For the cognizant of the public, orders the promulgation of this act by having it place on the State Gazette of the Republic of Indonesia.
For the cognizant of the public, orders the promulgation of this act by having it place on the State Gazette of the Republic of Indonesia.
Explanatory Note :
Sufficiently clear.
Legalized in Jakarta
on March 25, 2003
PRESIDENT OF THE REPUBLIC OF INDONESIA,
signed
MEGAWATI SOEKARNOPUTRI