The agreement is constitutes as a legal basis to the parties who made it to conduct certain subject and specified action, wherein this certain subject or specified action are not regulate or prohibit under the law in Indonesia. Moreover, Article 1338 Civil Code clearly stated that the agreement is applied for the parties as a Law, and cannot be revoked unless it is agreed.
Generally, the main legal basis to make an agreement in Indonesia is regulated under Civil Code, but there are certain regulation according to object and necessary to make the agreement in Indonesia. For example, Employment Agreement is made by company and employee which should be obey to the Laws No. 13 of 2003 regarding Employment Law, also the marriage agreement should be obey under Laws No. 1 of 1974 regarding Marriage.
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Employment termination during COVID-19 will become primary choice for some companies, because COVID-19 pandemic certainly caused many business entities (companies) cannot operate business activities due to fears of spreading of corona virus and also because of government policy related to implementation of PSBB (large-scale social restrictions).
To handle this situation, many companies are decide for employment termination during COVID-19 Pandemic, on the reason that the company has no income to pay employees or to operate production process because there are no profits or even no business activities.
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Business contracts generally refer to the provisions of the Civil Code, which regulates in detail about the agreement, requirements of the agreement, and the legal consequences of cancellation of agreement.
The agreement contains the rights and obligations of the parties, where one party gives a right to another party. An agreement must fulfill the requirements as stated by Article 1320 of the Civil Code, as follows:
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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.
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Penyelesaian sengketa melalui arbitrase merupakan penyelesaian yang dianggap banyak pihak sebagai suatu penyelesaian yang objektif, professional, dan efektif. Seperti halnya penyelesaian melalui Badan Arbitrase Nasional Indonesia (BANI), prosedur penyelesaian mengacu kepada internal peraturan BANI yang cenderung fleksibel dan professional dalam proses penyelesaian sengketa.
Proses penyelesaian arbitrase mengacu pada ketentuan Undang-Undang No.30 tahun 1999 tentang Arbitrase dan Alternatif Penyelesaian Sengketa (“UU Arbitrase”). Berdasarkan ketentuan Pasal 1 angka 1, ditegaskan mengenai pengertian arbitrase, yakni:
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