Employee Rights under Law in Indonesia

Employee rights in Indonesia are generally regulated under Law No. 13 of 2003 concerning Employment (“Employment Law“), but in some more specific cases it is also regulated in several provisions such as Law No. 21 of 2000 concerning Labor Unions (“LU Law“), as well as Government Regulations or Ministry of Manpower Regulations which are under the Act. Among the employee rights in Indonesia which are legally recognized, especially according to the provisions of the Manpower Law are as follows:

1. The rights for Wages

The employee rights in Indonesia to get wages is a basic right as regulated under Article 1 number 30 of Employment Law. Furthermore, the decent wage specifically regulated under Article 88 of Employment Law.

2. The rights to get the same opportunities and treatment

Every employee has the right to get same opportunities and treatment without any differences in gender, ethnicity, race, religion, or political affiliation. The same opportunities and treatments are regulated in Articles 5 and 6 of the Employment Law. However, in several practices there are still some of companies that provide different treatments and opportunities on the basis of ethnicity, race, religion.

3. The rights for limitation of working hours

Working hours for employee rights in Indonesia is strictly regulated in Article 77 of Employment Law, where the provision limits for working time to 40 hours of work a week. Furthermore, arrangements can be made for 6 working days with 7 working hours/day or 5 working days with 8 hours/ day. Above the provisions of working hours will be classified as overtime hours which the employee has right for overtime payment.

4. The rights for Overtime Pay

The right to overtime pay is stipulated in Article 78 of the Employment Law, which basically states that for employee who work more than working hours (7 or 8 hours), then the right to overtime pay. More specifically, the right to overtime pay is also regulated in Ministerial Decree No. 102/MEN/VI/2004 concerning overtime work and overtime pay, with the calculation (formula) overtime hourly wage is 1/173 of monthly wage.

5. The rights of employee for rest from work

Employees have the right to get rest, i.e. rest hours and weekly rest. As stipulated in Article 79 of Employment Law, stated that for the rest right of employees which are for rest hours and weekly rest.

6. The rights to not work and still get paid

Regulation the right of workers not to work and still receive wages (without deducting salary) are regulated in the provision of Article 93 paragraph (2) of Employment Law, especially during pandemic situation, which are detailed as follows:

  1. The employees are sick so that they cannot perform their work;
  2. The female employees are ill on the first and second day of their menstruation period so that they cannot perform their work;
  3. The employees 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 employee’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 employees or a member of the employee’s household dies.
  4. The employees cannot perform their work because they are carrying out or fulfilling their obligations to the State;
  5. The employees cannot perform their work because they are performing religious obligations ordered by their religion;
  6. The employees are willing to do the job that they have been promised to but the employer does not employ them, because of the employer’s own fault or because of impediments that the employer should have been able to avoid;
  7. The employees are exercising their right to take a rest;
  8. The employees are performing their trade union duties with the permission from the employer; and
  9. The employees are undergoing an education program required by their employer.

Among the provisions above, the most frequently misinterpreted by employees is the difference between leave and the right to not come to work. Generally, if an employee marries and does not come to work is usually called leave for married, actually it should be called as the right of employee not to come to work and still get paid (no deduction of salary) and not reduce annual leave.

7. The rights to Leave

The right to leave for employees is regulated in Article 79 of the Employment Law, which consists of annual leave and long leave. Annual leave is given to employees who have been working for 12 months continuously, while long leave only applies to employees in certain sectors as regulated in more detail in Regulation of Manpower Ministry (Kepmenakertrans) No. 51 / MEN / IV / 2004 concerning long leave at certain companies.

8. The rights to not work due to childbirth or miscarriage for female employees

Rights for employees who give birth are absent from work (get rest) for 1.5 months before the time of delivery and 1.5 months after giving birth, as regulated in Article 82 paragraph (1) of the Employment Law. As for female employee who get miscarriages has the right not to work (rest) for 1.5 months or in accordance with the doctor’s opinion, as stipulated in Article 82 paragraph (2) of Employment Law.

In practice, female employee tend to take more rest after giving birth, for example 1 month before giving birth and 2 months after giving birth, with condition that total of the rest for 3 months.

9. The rights of compensation due to employment termination

The right to compensation is generally known as severance, where the employee is entitled for obtaining payments (excluding wages) due to termination of employment. Basically, lay-off compensation consists of several components as stipulated in Article 156 of the Employment Law, namely severance pay, service reward, rights compensation.

The calculation of the compensation depends on the type of layoffs which have been regulated under Employment Law. For types of layoffs will be explained in a separate article.

10. The rights to obtain copy of Company Regulation or Collective Labor Agreement

Many employees do not realize that every employee has rights to obtain copy of Company Regulation as stated in Article 114 of Employment Law. Company Regulation is an obligation for companies that have at least 10 employees (Article 108 of Employment Law). As for Collective Labor Agreement, which replacing for Company Regulation, can be implemented for companies that have labor union. Collective Labor Agreement that has been agreed between company and labor union must be registered to Manpower Institution and should be distributed to all employees,

11. The rights to establish or join to labor union

Every employee has the right to establish or join become member of labor union, as regulated in Article 104 of Employment Law. The regulation in more detail regarding the establishment and membership of Labor Union is regulated in Law No. 21 of 2000 concerning Labor Union along with ministerial regulations.

12. The rights of women employee who has menstruation

Women employees are not required to work during menstruation and should be notified to the company. This is regulated in Article 81 of Employment Law, and technically regulated in Company Regulation and Collective Labor Agreement. Many problems for companies are regarding information about menstruation that some companies treated menstruation same like sickness which needed sickness letter from doctor. Basically, Employment Law has explicitly stipulated that women employees only need to give notice to the company.

13. The rights for employees with disabilities

Employment Law expressly stipulates that companies are obliged to provide protection for employees with disabilities according to the type and degree of disability, as stipulated in Article 67 of Employment Law.

author: wilopo husodo


Published by Husodo and Partners


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