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Industrial Relation

This document discusses employment contracts in Indonesia. It begins by defining key terms like employer, employee, and employment relationship. It then provides an example contract between PT Super Trucker Construction and an employee named Mr. Setiono. The document goes on to explain the requirements for establishing a valid employment contract under Indonesian law and lists the typical contents of contracts like job description, salary, benefits, and termination terms. It distinguishes between fixed-term contracts, which are limited in duration and benefits, and permanent contracts. Finally, it notes the consequences if a fixed-term contract violates the law, such as becoming a permanent contract.

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91 views

Industrial Relation

This document discusses employment contracts in Indonesia. It begins by defining key terms like employer, employee, and employment relationship. It then provides an example contract between PT Super Trucker Construction and an employee named Mr. Setiono. The document goes on to explain the requirements for establishing a valid employment contract under Indonesian law and lists the typical contents of contracts like job description, salary, benefits, and termination terms. It distinguishes between fixed-term contracts, which are limited in duration and benefits, and permanent contracts. Finally, it notes the consequences if a fixed-term contract violates the law, such as becoming a permanent contract.

Uploaded by

alma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Industrial/Employment

Relation

23 April 2019 RIZQI BANGUN LESTARI


Definitions
Government

Employment
Relationship
?

Employer Employee?
?
Group Discussion
Employer: PT Super Trucker
Construction, a limited liability company
running its business in construction
service, having its address at Jl. Tanah
Abang 39, Kelurahan Central Jakarta

Employee: Mr. Setiono, Indonesian,


Male, 25 years old, having his address
at Jl. Multi Agung 225, Purwokerto,
Central Java.

The Employee will be employed as a


welding staff, employed for 2 years with
salary of IDR 4,000,000 per month.
1 Employment Contract
Establishment Basis
 An employment contract must be established on the basis of
(Article 52):
1. Agreement;
2. The ability & eligibility;
3. There is an agreed work/ job description; and
4. The agreed work/ job description must not violate the
prevailing laws and regulations.
Employment Contract
Conditions of employment in an employment contract are
basically:
Outline and explain the provisions of the laws and
regulations;
Provide better provisions than the laws and regulations;
Provide what is not provided in the laws and
regulations.
Employment Contract
Key elements of employment contract:
Work
Salary
Order
Period
Employment Contract
 Verbal

 Written
Employment Contract
Key content of an employment contract :
Identity of each party.
Duration of employment: permanent/ fixed term.
Working period/hours and rest/break period.
Salary
Job description
Employment Contract
Key content of an employment contract (continue):
Facility & benefits
Annual leave
Location of hire
Code of conduct of the employee & its sanctions.
Employment Contract
Key content of an employment contract (continue):
Termination of employment.
Termination pay entitlement (severance, long service, and other entitlement
pay such as annual leave payment, etc.).
Boilerplates (governing language, confidentiality, dispute settlement).
Misc. (anything that is not regulated in the employment contract, shall refer
to the company regulation/ collective bargaining agreement).
Signature of the parties (don’t forget the date of the contract!).
Employment Contract
Types of Employment Contract in Indonesia

Fixed-term Employment Contract (Perjanjian


Kerja Waktu Tertentu)

Permanent Employment Contract (Perjanjian


Kerja Waktu Tidak Tertentu)
2 Fixed-term Employment Contract
Fixed-term Employment Contract
 Definition: fixed term employment contract is
established for a limited time and for limited works.

 A fixed-term employment contract can be established


for local/foreign employee.
Fixed-term Employment Contract
Specific provisions:
Must be in written form (Art. 57).
No probation period (Art. 58).
Limited work (Article 59 para 1).
Limited period (Article 59 para 4).
Must be registered.
Fixed-term Employment Contract
Specific provisions (continued):
Cannot be established for permanent works (Art. 59
para. 2)
No termination entitlement (long service, severance
payment (pesangon), etc).
3 Permanent Employment Contract
Permanent Employment Contract
 Definition: a contract which not limits the period
of employment (until the employee is terminated,
either due to severe mistakes, pension, death or
other cause) (Art. 61).
 Only for local employee.
Permanent Employment Contract
Specific provisions:
 Employment period ends if: pension, employee’s death,
termination of employment based on the company’s
regulation/prevailing laws, or by decision of the industrial
relation court.
 Probation period (3 months maximum).
 Termination entitlement (severance pay, long service pay,
and other entitlements).
4 Consequences of Violation
Consequences of Violation
Fixed term employment becomes a permanent
employment contract if:
1.it is not made in Indonesian language
2.It is made for continuous and core activities
3.If the renewal is not made after 30 days of break.
Example of Clauses
Here are some examples of provisions in an employment contract:
No. Wrong Clauses Correct Clauses

1. Perusahaan berhak memberhentikan Pekerja apabila Perusahaan berhak memberhentikan Pekerja apabila
Perusahaan berada dalam situasi dan kondisi yang Perusahaan berada dalam situasi dan kondisi yang tidak
tidak memungkinkan lagi untuk memungkinkan lagi untuk mempekerjakan Pekerja akibat
mempekerjakan Pekerja akibat memburuknya kinerja Perusahaan tutup dan berhenti beroperasi.
Perusahaan.

2. Jam kerja Pekerja adalah 40 jam seminggu, dengan Jam kerja Pekerja adalah 40 jam seminggu, dengan jam
jam kerja sebagai berikut: kerja sebagai berikut:
Senin : 08.30-17.30 Senin : 08.30-17.30
Selasa: 08.30-21.30 Selasa: 08.30-17.30
Rabu: 08.30-13.30 Rabu: 08.30-17.30
Kamis: 08.30-21.30 Kamis: 08.30-17.30
Jumat: 08.30-13.30 Jumat: 08.30-17.30
Example of Clauses
No Wrong Clauses Correct Clauses

1 Kontrak kerja ini dibuat pada hari Kamis, 25 Juni 2018, Perjanjian Kerja Waktu Tertentu ini dibuat pada hari Kamis, 25 Juni
antara PT. Pelayaran Berjaya, Jl. M.H. Thamrin No. 2018, antara PT Pelayaran Berjaya, suatu perseroan terbatas yang
49, yang diwakili oleh Assistant Human Resources bergerak di bidang angkutan pelayaran, beralamat di Jl. M.H.
Manager Thamrin No. 49, yang diwakili oleh Assistant Human Resources
Manager.

2 Pekerja akan menerima gaji bulanan Rp 11,000,000,- Pekerja akan menerima gaji bulanan Rp 11,000,000,- (sebelas juta
(sebelas juta Rupiah), dengan perincian sebagai berikut: Rupiah), dengan perincian sebagai berikut:

Upah pokok : Rp. 6.000.000


Tunjangan tetap : Rp. 5.000.000 Upah pokok : Rp. 9.000.000
Tunjangan tetap : Rp. 2.000.000

3 Pekerja berhak menerima Tunjangan Hari Raya yang Pekerja berhak menerima Tunjangan Hari Raya yang akan
akan dibayarkan selambatnya 1 (satu) hari sebelum hari dibayarkan selambatnya 7 (tujuh) hari sebelum hari raya keagamaan.
raya keagamaan.
Thank You
Budidjaja International Lawyers
Sahid Sudirman Centre, 49th Floor
Jl. Jendral Sudirman No.86
Jakarta 10220, Indonesia
Ph. +62-21 520 1600
Fax. +62-21 520 1700
Email: [email protected]
www.budidjaja.id

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