Labour Law in Indonesia

Labour Law for reviews so that we understand the position of the workers and the employer in an employment relationship, because of the employment relationship will basically indicate the rights and obligations of both parties.

Rights and obligations of both parties is contained in the terms of employment. The terms of employment are the instructions which must be arranged / organized by the workers and the employer in an employment relationship and set forth in the AGREEMENT.

Terms of Employment
Terms of work that will be discussed include:
1. Wage
2. Hours of Work & Overtime
3. Work breaks & Cuti
4. Women workers
5. Protection
6. Certain Time Employment Agreement

1. WAGE
Wages are the rights of workers / laborers are accepted and expressed in the form of money as a reward from the employer or the employer to the worker / laborer assigned and paid by an employment agreement, agreements, or the laws and regulations, including allowances for workers / laborers and their families on a work and / or services that have been or will be made. (Article 1 point 30 of Law No. 13 Year 2003 on Manpower)

LEGAL BASIS
Article 27 UUD 1945
UU no. 13 of 2003 on Labour

[PART WAGES]
a. The basic wage is the base remuneration paid to workers according to the level or type of work as stipulated by the agreement
b. Fixed allowances are regular payments related to fixed work given to workers and their families, which is paid together with the basic wage (example: child benefits, medical benefits, housing allowances)
c. Allowances are not fixed payments that are directly or indirectly associated with the given precarious workers, paid does not coincide with the payment of basic wages (eg, attendance incentives)

[NOT A PART WAGES]
a. The facility is a pleasure in tangible form / nature for things that are special or for improving the welfare of workers (eg, shuttle facilities, feeding freely, canteen facilities)
b. Bonus is a payment received by workers of the results of the company's profit or for achievement
3. Allowance (THR) is the income which must be paid by the employer to the worker before the religious holiday
c. THR given to workers who already have a working period of 3 (three) months by an amount proportional (tenure / 12 X monthly wage)
d. The tenure of the above twelve (12) months or more receives THR 1 (one) month's salary.

[REGIONAL MINIMUM WAGE]

IE lowest wage that consists of a basic salary, including benefits received by permanent workers in a specific region within a province.

[ELEMENTS AFFECTING THE PAYMENT OF WAGES]
workers who are sick
a. 4 (four) months paid 100%
b. 4 (four) months both paid 75%
c. 4 (four) of the third month paid 50%
d. The next month is paid 25% prior to the termination of employment by the employer

Position of wages, if the employer bankruptcy, wages are prioritized debt payments. The form of wages, basically given in the form of money, but in another form is allowed but the value does not exceed 25% of the value of wages.

2. HOURS OF WORK AND OVERTIME WAGES
Article 77 of Law 13/2003, Working Time:
a. 7 (seven) hours 1 (one) day and 40 (forty) hours 1 (one) week for six (6) working days within 1 (one) week
b. 8 (eight) hours 1 (one) day and 40 (forty) hours 1 (one) week for 5 (five) working days within 1 (one) week
c. Overtime is the rest of the hours of work set out in the above points
Hours of Work & Overtime Wages

Employers who hire workers / laborers to work overtime shall be eligible:
a. There consent worker / laborer
b. overtime work can be done at most three (3) hours in one (1) day and 14 (fourteen) hours in one (1) week

Overtime wages
Ordinary Working Day:
a. Hours I = 1.5 X hourly wage
b. Each subsequent hour (Jam II) = 2 X wage per hour

Weekly rest day / feast:
a. Every hour in the range of 7 hours or 5 hours when the feast falls on a weekday shortest on one day in 6 working days semingu = 2 X wage per hour
b. Hours I = 3 X hourly wage
c. Each subsequent hour (Jam II) = 4 X wage per hour

3. Work breaks & Cuti
Employers are required to give time off and leave to workers / laborers include:
1. The break between the hours of work, at least half an hour after working for four (4) consecutive hours and rest periods do not include working hours.
2. The weekly rest one (1) day to six (6) working days within 1 (one) week or two (2) days to five (5) working days within 1 (one) week.
3. The annual leave of at least 12 (twelve) working days after the worker / laborer working for twelve (12) months of continuous.
4. leave large / long break, for workers who have been working for six years continuously on beerapa an employer or employers who are members of an organization entitled to a break for 3 months.
5. menstruation leave, is not required to work on the first day and the second time of menstruation.
6. generous maternity / childbirth / miscarriage, women workers were given a break 1 ½ before and 1 ½ after giving birth, or 1 ½ months after abortion.
7. leave pilgrimage religion, given sufficient time off without reducing other leave entitlements.

4. WOMEN WORKERS
A. Workers are prohibited women employed at night and in places that do not fit the nature and dignity
B. Women workers are not required to work the Day of the first and second time of menstruation
C. Employed women who are breast-feeding should be given proper opportunities to breastfeed during working hours

Child Labour
-Eighteen Male / female aged less than 15 years
-Pengusaha Prohibited from employing children
-Pengusaha Who employ children for some reason obliged to provide protection:
a. Not employs more than 4 hours a day
b. Not hiring of pk. 18:00 to 6:00 a.m.
c. Not hiring in underground mines, underground hole, in the tunnels
d. Not hiring in places that endanger morals, safety, and occupational health
e. Do not employ children in the construction works of roads, bridges, waterworks, and buildings
f. Not hiring at the plant indoors ayng closed using machine tools
g. Do not employ children in the making, demolition and removal of goods at ports, docks, shipyards, railway stations, stops and unloading and storage of goods.

5. Work protection
a. Labor are entitled to the protection of safety, health and morals, moral maintenance work according to human dignity
b. Labor is entitled to social security workforce consists of accident insurance, life insurance, pension, health care benefits

Employment agreement
a. The working relationship is a civil relationship that is based on an agreement between the workers and the employer or employers.
b. The employment agreement contains rights and obligations of each party both employers and workers
c. Oral employment agreement = permitted but required a letter of appointment for the workers concerned, which includes: the name and address of the worker, the date of starting work, type of work, the wages. \
d. The agreement for a specified time should not be spoken
e. Written work agreement should contain:
- Name, address and type of business
- Name, address, age, gender, address worker
- Position or type of work
- Place of work
- Wages earned and how to pay
- The rights and obligations of the parties
- Category treaty (PKWT, or PKWTT)
- Start and period of validity of labor agreement
- Place and date of employment agreement made

The employment agreement is based on:
a. Agreement by both parties to the employment relationship
b. Skills of the parties to make an appointment
c. No work of an agreement
d. Jobs promised not contrary to public order, morality, and the legislation in force

Various agreements:
a. Certain Time Employment Agreement = a certain time period
b. Employment Agreement Time Indefinite / permanent employees
c. Employment Agreement with the Company Repair Works
d. Working Agreement with Service Provider Company Workers

Employment agreement
Collective labor agreement or company regulations shall be made in writing by the employer, load work requirements and rules of the company, must be approved by the Minister or a designated officer. Things are regulated rights and obligations of the employer, workers' rights and obligations, terms of employment, order company, the period of validity of company regulations no later than 2 years. Companies that have employees over 50 people are required mempuat Employment Agreement Persama

6. Certain Time Employment Agreement
a. Certain Time Employment Agreement is a working relationship with limited
b. Certain Time Employment Agreement shall not require any probation
c. Certain Time Employment Agreement is only allowed for:
- Once the work is completed / temporary,
- Work that is expected to be completed within a maximum period of 3 (three) years,
- Work that is seasonal,
- Work related to the product, or a new activity that is still in the exploratory stage
d. Certain Time Employment Agreement is based on a certain time period can be deleted for a maximum of two (2) years and may only be extended for 1 (one) time for a maximum period of 1 (one) year

Work termination
a. workers / laborers are still on probation, such has been stipulated in writing beforehand.
b. workers / laborers filed a resignation request, in writing, of their own accord without any indication of the pressure / intimidation from employers, employment is to terminate in accordance with the Working Agreement for specific time periods for the first time
c. workers / laborers reach retirement age in accordance with the provisions in employment contracts, company regulations, collective labor agreements, or legislation; or
d. workers / laborers died.

Calculation of Severance Pay
1. The tenure of less than 1 (one) year, one (1) month of wages;
working period of 1 (one) year or more but less than 2 (two) years, two (2) months of wages;
2. The work period of 2 (two) years or more but less than 3 (three) years, three (3) months' salary;
3. The working period of 3 (three) years or more but less than 4 (four) years, four (4) months of wages;
4. The working period of 4 (four) years or more but less than 5 (five) years, five (5) months of wages;
5. The working period of 5 (five) years or more, but less than 6 (six) years, six (6) months of wages;
6. The working period of 6 (six) years or more but less than 7 (seven) years, seven (7) months of wages;
7. The working period of 7 (seven) years or more but less than 8 (eight) years, eight (8) months of wages;
8. The working period of 8 (eight) years or more, nine (9) months of wages.

The Calculation of Gratuity
1. The working period of 3 (three) years or more but less than 6 (six) years, two (2) months of wages;
2. The working period of 6 (six) years or more but less than 9 (nine) years, three (3) months' salary;
3. The working period of 9 (nine) years or more but less than twelve (12) years, four (4) months of wages;
4. The working period of 12 (twelve) years or more but less than 15 (fifteen) years, five (5) months of wages;
5. The working period of 15 (fifteen) years or more but less than 18 (eighteen) years old, 6 (six) months of wages;
6. The working period of 18 (eighteen) years or more but less than 21 (twenty-one) years, seven (7) months of wages;
7. The working period of 21 (twenty-one) years or more but less than 24 (twenty four) years, eight (8) months of wages; working period of 24 (twenty four) years or more, 10 (ten) months of wages.

Reimbursement rights or entitlements
a. annual leave not taken and not fall;
b. costs or expenses return for the workers / laborers and their families to places where workers / laborers received work;
c. replacement of housing as well as treatment and care are set at 15% (fifteen percent) of severance pay and / or gratuity to those who qualify;
d. other matters specified in labor agreements, company regulations or collective agreements.


BUSINESS LAW by Moh. Irza 'Asmoe'i, SE, MM
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