Translation:Indonesian Labor Law No. 13 from 2003

Indonesian Labor Law No. 13 from 2003  (2003) 
Indonesian government, translated from Indonesian by Wikisource

The Republic of Indonesia’s Labor Law No. 13, Year 2003

WITH THE BLESSINGS OF THE ONE GOD

PRESIDENT OF THE REPUBLIC OF INDONESIA,

Considering:

a. That national improvement is done in the framework of improving all humans of Indonesia and improving all Indonesian citizens to create citizens that are beneficial, fair, prosperous, equal, and good in material as well as spiritual matters based on the 5 Principles (Pancasila) and the Constitution of the Republic of Indonesia (UU Dasar Negara Republik Indonesia Tahun 1945);

b. That in the performing of said national improvement, employees have a role and position that is extremely important as the doers and the goal of development;

c. That in accordance with the role and position of employees, the development of manpower to improve the quality of labor and its role in development along with the improvement of the protection of labor and families is needed in accordance with the dignity and prestige of humanity;

d. That the protection of employees is meant to ensure the basic rights of workers/laborers, and ensure the equal opportunity to work without discrimination based on any reasons in order to create the welfare of workers/laborers and their families while still paying attention to the consideration of the advancement of the business world;

e. That some laws about manpower are now viewed as no longer appropriate for the needs and demands of the development of manpower, and because of this they need to be revoked and/or removed;

f. That based on the considerations that are stated in a, b, c, d and e, there is a need to make a Labor Law;

Recall:
Article 5 subsection 1, Article 20 subsection 2, Article 27 subsection 2, Article 28, and Article 33 subsection 1 from the Constitution of RI;

With the agreement of and between:

THE HOUSE OF THE PEOPLE’S REPRESENTATIVES OF THE REPUBLIC OF INDONESIA

and

THE PRESIDENT OF THE REPUBLIC OF INDONESIA

HAVE DECIDED:

Proclaim:

LAW ABOUT MANPOWER

CHAPTER I: REGULATIONS DEFINING TERMSEdit

Article 1Edit

In this law, what is meant by: 1. Manpower is all things that are connected with a employee before, during and after his/her working life.
2. Employee is every person that has the ability to do work for the purpose of producing goods and/or services to fulfill individual needs as well as those of society.
3. Workers/laborers are every person that works to receive a salary or remuneration in another form.
4. Employer is an individual, entrepreneur, legal body or other group that employs employees who are paid with a salary or remuneration in another form.
5. Entrepreneur is:

a. An individual, partnership or legal body that runs a business which it owns;
b. An individual, partnership or legal body that runs a company which it doesn’t own;
c. An individual, partnership or legal body that is in Indonesia that represents a company as defined in a and b that located outside of the territory of Indonesia.

6. Enterprise is:

a. All types of businesses that are legal bodies or not, owned by a person, partnership or legal body, private or national that employ workers/laborers who are paid with a salary or remuneration in another form.
b. Social businesses and other businesses that have management and employ other people are paid with a salary or remuneration in another form.

7. Employment planning is the process of systematically compiling a manpower plan, which becomes the foundation and reference in composing policies, strategies, and the implementation of the program of the development of manpower that is continuous.
8. Manpower information is a composite, series and data analysis that is in the form of numbers that have been processed, manuscripts and documents that have meaning, value and a certain purpose about manpower.
9. Work training is all activities to give, get, improve as well as develop work competencies, productivity, discipline, attitude and work ethic to a certain skill level and expertise that is appropriate with the level and qualifications of the position or job.
10. Work competency is the work ability of every individual that is included in the aspects of knowledge, skills and work attitude that is appropriate for the standards that have been established.
11. Apprenticeship is the part of a training system that is provided harmoniously by the trainer in a training institute by working directly under the guidance and oversight of the instructor or workers/laborers that are more experienced, in the goods production process and/or services of the enterprise, in the framework of mastering a certain skill or expertise.
12. Employee placement service is the activity of uniting labor with employers, until employees can get work that is a match with their talents, interests and abilities, and the employer can get employees that are appropriate for its needs.
13. Foreign employee is a foreign national who is a visa holder with the intent of working in the territory of Indonesia.
14. Employment agreement is a contract between workers/laborers and entrepreneur(s) or employers that contains the work conditions, rights and obligations of all parties.
15. Working relationship is the relationship between an entrepreneur(s) and workers/laborers, based on the employment agreement, that has job elements, salary and orders.
16. Industrial relations is a relational system that is formed between the doers of the goods production process and/or services that consists of entrepreneurial elements, workers/laborers, and commands that are based on the values of the Five Principles (Pancasila) and the Constitution of the Republic of Indonesia.
17. Workers’ union/laborers’ union is an organization formed from, by and for workers/laborers, both within and outside of an enterprise, that has the characteristics of being free, open, autonomous, democratic and responsible for the purpose of fighting for, defending and protecting the rights and interests of workers/laborers as well as improving the welfare of them and their families.
18. Bipartite cooperative institute is a forum for communication and consultation about things that are connected to industrial relations in one enterprise where the members are composed of entrepreneurs and worker /laborer union(s) that have been registered at the agency that is responsible for the areas of manpower or worker/laborer factors.
19. Tripartite cooperative institute is a forum for communication, consultations and discussions about manpower problems where the members are composed of elements of entrepreneurial organizations, workers/laborers unions and the government.
20. Enterprise rules are rules that have been written by an entrepreneur(s) which determines the conditions of work and the enterprise regulations.
21. Joint venture agreement is a contract that constitutes the results of negotiation between one or more workers’/laborers’ unions, which are registered at the agency that is responsible for the area of manpower, and one or more entrepreneurs or groups of entrepreneurs that define the work conditions, rights and responsibilities of both parties.
22. Industrial relations disagreement is a difference of opinions that results in a conflict between an entrepreneur or group of entrepreneurs with workers/laborers or a workers’/laborers’ union(s) because there is a disagreement about rights, interests and termination of employment, as well as a disagreement between workers’/laborers’ unions within one enterprise.
23. Striking is a worker/laborer action that is planned and carried out jointly with and/or by a workers’/laborers’ union(s) to stop or delay work.
24. Enterprise Closure (lock-out) is an entrepreneur’s action to reject all or some workers/laborers from doing their work.
25. Termination of employment is the ending of the working relationship because of certain things that result in the ending of the rights and responsibilities between a worker/laborer and an entrepreneur.
26. Child is any person that is under the age of 18 (eighteen) years.
27. Daytime is the time between 6:00 and 18:00.
28. 1 (one) day is equal to 24 (twenty-four) hours.
29. A week is equal to 7 (seven) days.
30. Wages is the right of a laborer/worker that is received and realized in the form of money as remuneration from an entrepreneur or employer to a worker/laborer that has been accepted and paid according to some sort of employment agreement, agreement or some sort of job and/or service that has been or will be done.
31. Workers’/laborers’ welfare is the coverage of physical and spiritual requirements and needs, within or outside of the working relationship, which can directly or indirectly increase job productivity in a working environment that is safe and healthful.
32. Manpower supervision is the activity of monitoring and enforcing the implementation of legal rules in the area of manpower.
33. Minister is the minister that is responsible for manpower.

Chapter II: BASIS, PRINCIPLES AND PURPOSESEdit

Article 2Edit

The building of manpower is based on the Five Principles (Pancasila) and the Constitution of the Republic of Indonesia.

Article 3Edit

The building of manpower is provided based on principle of cohesiveness by means of functional coordination through the central and regional sectors.

Article 4Edit

The building of manpower has the purposes of:

a. Resourcing and making use of employees optimally and humanely;
b. Realize the equalization of employment opportunities and the provision of employees that is appropriate to the needs of building of the nation and regions;
c. Protect employees in order to create welfare; and
d. Increase employee and familial welfare.

CHAPTER III: EQUAL OPPORTUNITY AND TREATMENTEdit

Article 5Edit

Every employee has the same opportunity without discrimination to get a job.

Article 6Edit

Every worker/laborer has the right to be treated the same without discrimination by an entrepreneur.

CHAPTER IV: LABOR PLANNING AND MANPOWER INFORMATIONEdit

Article 7Edit

(1) In the framework of building manpower, the government establishes policies and arranges in an orderly fashion the planning of labor.

(2) Labor planning comprises:

a. Labor macro-planning; and
b. Labor micro-planning.

(3) In the arrangement of policies, strategies and implementation of the manpower building program that is ongoing, the government must be oriented towards the labor planning as is intended in clause (1).

Article 8Edit

(1) Labor planning is organized on the basis of manpower information that is comprised of:

a. Inhabitants and employees;
b. Work opportunities;
c. Work training including work competencies;
d. Employee productivity;
e. Industrial relations;
f. Workplace conditions;
g. Wages and employee welfare; and
h. Employee compensation insurance.

(2) Manpower information as used in clause (1), is acquired from all parties that are involved, whether governmental or private.

(3) Stipulations about the way to acquire manpower information and the arrangement and carrying out of labor planning, in the same manner as is meant in clause (1), shall be arranged by Governmental Regulations.

CHAPTER V: WORK TRAININGEdit

Article 9Edit

Work training is implemented and directed to provide, improve and develop work competencies for the purpose of improving abilities, productivity and welfare.

Article 10Edit

(1) Work training is executed with attention to the needs of the employment market and the world of business, both within and outside of work relations.

(2) Work training is implemented based on the training program that is molded by work competency standards.

(3) Work training may be done gradually.

(4) Stipulations about the way of determining work competency standards, in the same manner as is meant in clause (2), shall be arranged by a Ministerial Decree.

Article 11Edit

Every employee has the right to get and/or improve and/or develop their work competencies in accordance with their talents, interests and abilities through work training.

Article 12Edit

(1) The entrepreneur is responsible for the improvement and/or development of the worker’s competencies via work training.

(2) It is required of the entrepreneur that the improvement and/or development of competencies, in the same manner as is meant in clause (1), shall fulfill the rules and regulations that have been stipulated by the Ministerial Decree.

(3) Every worker/laborer has the same opportunity to follow work training that matches the area of his/her work.

Article 13Edit

(1) Work training is implemented by a governmental or private work training institute.

(2) Work training can be provided in a training place or the workplace.

(3) A work training institute, in the same manner as is meant in clause (1), can work together with a private institute in the implementing of work training.

Article 14Edit

(1) A private work training institute can be formed by an Indonesian legal body or an individual.

(2) A private work training institute, in the same manner as is meant in clause (1), is required to get a permit or register to the agency that is responsible in the area of manpower in the regency/city.

(3) A work training institute that is implemented by a governmental agency registers activities to the agency that is responsible in the area of manpower in the regency/city.

(4) Stipulations about licensing and registration of a work training institute as intended in clauses (2) and (3) are arranged by a Ministerial Decree.

Article 15Edit

Implementation of work training must fulfill the rules and regulations:

a. The availability of training staff;
b. A curriculum that is appropriate to the level of training;
c. The availability of work training tools and infrastructure; and
d. The availability of funding for the continuation of the implementation activities of work training.

Article 16Edit

(1) A private work training institute that has received permission and a governmental work training institute that has been registered can get accreditation from an accrediting institute.

(2) An accrediting institute, in the same manner as is meant in clause (1), has the characteristic of being independently founded upon the elements of society and government that shall be established with a Ministerial Decree.

(3) The organization and system of work of an accrediting institute, in the same manner as is meant in clause (2), shall be arranged by Ministerial Decree.

Article 17Edit

(1) The agency that is responsible in the area of manpower in a regency/city can temporarily stop the implementation of work training, if in the carrying out of it apparently it:

a. Isn’t in accordance with the direction of the work training as intended in Article 9; and/or
b. Doesn’t fulfill the rules and regulations as intended in Article 15.

(2) The temporary stoppage of the carrying out of the implementation of work training, in the same manner as is meant in clause (1), must be accompanied by reasons and constructive feedback, and can last for no more than 6 (six) months.

(3) The temporary stoppage of the carrying out of the implementation of work training is only allowed in the case of a training program that doesn’t fulfill the conditions as intended in Articles 9 and 15.

(4) For the implementer of work training that, in 6 (six) months, doesn’t comply and fulfill the constructive feedback, in the same manner as is meant in clause (2), it shall be subject to the sanction of the stoppage of work training.

(5) The implementer of work training that doesn’t follow and continually execute the work training program that has been stopped, in the same manner as is meant in clause (4), shall be subject to the sanction of the withdrawl of its permit and the cancellation of its registration as a training implementor.

(6) Stipulations about temporary stoppages, stoppages, permit withdrawl, and registration cancellation are arranged with a Ministerial Decree.

Article 18Edit

(1) Employees have the right to get a work competency avowal after following work training that is implemented by a governmental or private work training institute, or training in the workplace.

(2) The work competency avowal, in the same manner as is meant in clause (1), shall be done by certification of work competency.

(3) The work competency certification, in the same manner as is meant in clause (2), can likewise be followed by employees that are experienced.

(4) To perform work competency certification, an independent national occupational certification body is formed.

(5) The formation of an independent national occupational certification body, in the same manner as is meant in clause (4), shall be arranged by Ministerial Decree.

Article 19Edit

Work training for handicapped employees is done with attention to type and degree of incapacity, and the handicapped employee’s abilities that are pertinent.

Article 20Edit

(1) To support the improvement of work training in the framework of the building of manpower, a system of national work training is developed that is made up with references from the implementation of work training from all areas and/or sectors.

(2) The stipulation about the form, mechanism and institutionalization of a national work training system, in the same manner as is meant in clause (1), shall be arranged by Governmental Regulations.

Article 21Edit

Work training can be implemented with an apprenticeship system.

Article 22Edit

(1) An apprenticeship is done based on a written apprenticeship agreement between the apprentice and the entrepreneur.

(2) The apprenticeship agreement, in the same manner as is meant in clause (1), minimally defines the stipulations of the rights and obligations of the apprentice and the entrepreneur as well as the duration of the apprenticeship.

(3) An apprenticeship that is not implemented with an apprenticeship agreement, in the same manner as is meant in clause (1), shall be considered to be illegal and the status of the apprentice is changed to become a worker/laborer of the enterprise in question.

Article 23Edit

An employee that has followed an apprenticeship program has the right to an avowal of work competency qualifications from the enterprise or from a certification institute.

Article 24Edit

An apprenticeship can be done in the enterprise itself or in a work training implementation place, or at another enterprise, within or outside of the territory of Indonesia.

Article 25Edit

(1) An apprenticeship that is done outside of the territory of Indonesia is required to get permission from the Minister or an appointed official.

(2) In order to get permission, in the same manner as is meant in clause (1), the apprenticeship implementer must be organized as a legal Indonesian body in accordance with the applicable official ordinances.

(3) Stipulations about the licensing of an apprenticeship that is outside of the territory of Indonesia as intended in clauses (1) and (2), is arranged with a Ministerial Decree.

Article 26Edit

(1) The implementation of an apprenticeship outside the territory of Indonesia must attend to:

a. The dignity and prestige of Indonesian people;
b. The mastery of a higher competency; and
c. The protection and welfare of the apprenticeship participants, including the performance of prayers.

(2) The Minister or an appointed official can stop the implementation of an apprenticeship outside the territory of Indonesia if during the implementation it is apparently not in accordance with the stipulations, in the same manner as is meant in clause (1).

Article 27Edit

(1) The Minister can make it compulsory for an enterprise that fulfills the rules and regulations to implement an apprenticeship program.

(2) In establishing the rules and regulations, in the same manner as is meant in clause (1), the Minister must pay attention to the interests of the enterprise, the society and the country.

Article 28Edit

(1) To give advice and opinions for the determination of policies as well as for the coordination of work training and apprenticeship, a national work training coordinating body is formed.

(2) The formation, membership and system of a work training coordination institute, in the same manner as is meant in clause (1), shall be arranged by Presidential Decree.

Article 29Edit

(1) The central government and/or regional government executes the guidance of work training and apprenticeship.

(2) The guidance of work training and apprenticeship has the purpose of directing the increase of the relevance, quality and efficiency of the work training implementation and productivity.

(3) Productivity increase, in the same manner as is meant in clause (2), shall be done via the development of productive culture, work ethic, technology and the efficiency of economic activities, materialized as the realization of national productivity.

Article 30Edit

(1) To increase productivity as intended in Article 29 clause (2) a national productivity institute is formed.

(2) The productivity institute, in the same manner as is meant in clause (1), shall be composed of a network of productivity increase service institutes that are characterized as being through a sector or region.

(3) The formation, membership and work rules of the national productivity institute, in the same manner as is meant in clause (1), shall be arranged by a Presidential Decree.

CHAPTER VI: PLACEMENT OF EMPLOYEESEdit

Article 31Edit

Each employee has the same right and opportunity to choose, receive or change jobs and get compensation that is proper within or outside the country.

Article 32Edit

(1) Employee placement is done based on a transparent, free, objective as well as fair basis, and equal without discrimination.

(2) Employee placement is aimed at the placing of employees in a post that is a match for their expertise, skills, aptitudes, interests and abilities with attention to the dignity, prestige, human rights and protection of the law.

(3) Employee placement is performed with attention to the equal opportunity for work and the availability of employees in accordance with the needs of the national and regional programs.

Article 33Edit

Employee placement is composed of:

a. Employee placement within the country; and
b. Employee placement outside of the country.

Article 34Edit

Stipulations about employee placement outside of the country as intended in Article 33b are arranged by laws.

Article 35Edit

(1) An employer that needs an employee can recruit the needed employee independently or via an employee placement service.

(2) The director of an employee placement service, in the same manner as is meant in clause (1), is required to protect the employee from the time of recruitment until placement.

(3) An employer, in the same manner as is meant in clause (1), in employing an employee is required to give protection that encompasses the welfare, safety and health – both physical and mental – of the employee.

Article 36Edit

(1) Employee placement by a director as intended in Article 35 (1) is done by providing employee placement services.

(2) Employee placement services, in the same manner as is meant in clause (1), shall have the harmonious characteristics in one system of employee placement that include the following elements:

a. employment search;
b. job vacancies;
c. marketplace information;
d. system of work; and
e. institutionalization of employee placement.

(3) The elements of an employee placement system, in the same manner as is meant in clause (2), can be executed independently with the goal of realizing employee placement.

Article 37Edit

(1) The director of employee placement as intended in Article 35 clause (1) is composed of:

a. Government agencies that are responsible in the area of manpower; and
b. Private institutes in the form of legal bodies.

(2) Private employee placement institutes, in the same manner as is meant in clause (1b), in the performing of employee placement services, are required to have written permission from the Minister or an appointed official.

Article 38Edit

(1) The director of employee placement as intended in Article 37 clause (1a) is prohibited from charging a placement fee, either directly or indirectly, partially or in whole, to the employee and the employee user.

(2) Private employee placement institute as intended in Article 37 clause (1b) can only charge an employee placement fee to the employee user and from certain types of employees and posts.

(3) Types and posts, in the same manner as is meant in clause (2), shall be arranged by a Ministerial Decree.

CHAPTER VII: EXPANSION OF JOB OPPORTUNITIESEdit

Article 39Edit

(1) The government is responsible for striving for the expansion of work opportunities, both within and outside of work relations.

(2) The government and society together strive for the expansion of work opportunities, both within and outside of work relations.

(3) All national and regional government policies in each sector should be aimed at realizing the expansion of job opportunities within and outside of work relations.

(4) Financial institutes, both banking and non-banking, and the corporate world need to help and give easements to each societal activity that can create or develop the expansion of job opportunities.

Article 40Edit

(1) The expansion of job opportunities outside of work relations is done via the creation of activities that are productive and ongoing by utilizing the potential of natural resources, human resources and the appropriate technology.

(2) The creation of the expansion of job opportunities, in the same manner as is meant in clause (1), is done with a design for the shaping and guiding of autonomous employees, the application of a labor-intensive system, the application of appropriate technology, and the utilization of volunteer employees or other designs that can encourage creating of the expansion of job opportunities.

Article 41Edit

(1) The government establishes policies about manpower and the expansion of job opportunities.

(2) The government and society shall together keep an eye on the carrying out of policies, in the same manner as is meant in clause (1).

(3) In the performing of the tasks, in the same manner as is meant in clause (2), a coordinating body that is composed of elements of the government and society can be formed.

(4) Stipulations regarding the expansion of job opportunities and the formation of a coordinating body as intended in Article 39, Article 40 and clause (3) in this article are arranged with a Governmental Regulation.

CHAPTER VIII: USAGE OF FOREIGN EMPLOYEESEdit

Article 42Edit

(1) Every employer that employs a foreign employee must have written permission from the Minister or an appointed official.

(2) An employer in the form of an individual (not a company) is prohibited from employing a foreign employee.

(3) The requirement to have permission, in the same manner as is meant in clause (1), isn’t valid for representatives of foreign nations that use foreign employees as diplomatic and consular officials.

(4) Foreign employees can be employed in Indonesia only in work relations for specific posts and specific durations.

(5) Stipulations about the specific posts and specific durations, in the same manner as is meant in clause (4), shall be arranged by Ministerial Decree.

(6) Foreign employees, in the same manner as is meant in clause (4), wherein their period of employment has ended and can’t be extended can be replaced by other foreign employees.

Article 43Edit

(1) An employer that uses a foreign employee must have a plan for the use of said foreigner that has been approved by the Minister or an appointed official.

(2) The plan for the use of a foreign employee, in the same manner as is meant in clause (1), must minimally clarify:

a. The reason for the use of a foreign employee;:
b. The title and/or position of the foreign employee within the organizational structure of the enterprise in question;:
c. The duration of the utilization of the foreign employee; and:
d. The appointment of an Indonesian employee as the assistant of the foreign employee that is to be employed.:

(3) Stipulations, in the same manner as is meant in clause (1), aren’t valid for government agencies, international bodies and the representation of foreign nations.

(4) Stipulations about how to approve a plan to utilize a foreign employee are arranged by Ministerial Decree.

Article 44Edit

(1) An employer of a foreign employee must follow the stipulations regarding the title and standards of competency that are in force.

(2) Stipulations about titles and standards of competency, in the same manner as is meant in clause (1), shall be arranged by Ministerial Decree.

Article 45Edit

(1) The employer of foreign employees must:

a. Appoint an Indonesian employee as the assistant of the foreign employee that is employed to acquire technology dan change expertise from the foreign employee; and
b. Perform education and work training of the Indonesian employee as intended in part (a) which is in accordance with the qualifications of the post that is held by the foreign employee.

(2) Stipulations, in the same manner as is meant in clause (1), aren’t valid for a foreign employee that has the title of director or commissioner.

Article 46Edit

(1) Foreign employees are prohibited from holding positions that take care of personnel and/or certain other positions.

(2) Certain other positions, in the same manner as is meant in clause (1), shall be arranged by a Ministerial Decree.

Article 47Edit

(1) An employer is required to pay compensation to every foreign employee that is employed by it.

(2) The requirement to pay compensation, in the same manner as is meant in clause (1), isn’t valid for government agencies, representatives of foreign nations, international bodies, social institutes, religious institutes, and certain positions in educational institutes.

(3) Stipulations regarding certain positions in educational institutes, in the same manner as is meant in clause (2), shall be arranged by Ministerial Decree.

(4) Stipulations regarding the size of compensation and its usage shall be arranged by Governmental Regulations.

Article 48Edit

An employer that employs a foreign employee is required to return that foreign employee to his/her country of origin after the working relationship ends.

Article 49Edit

Stipulations regarding the utilization of foreign employees as well as the performing of education and training of the assistant to said foreigner are arranged by Presidential Decree.

CHAPTER IX: WORKING RELATIONSHIPEdit

Article 50Edit

A working relationship happens because of the presence of an employment agreement between an entrepreneur and a worker/laborer.

Article 51Edit

(1) An employment agreement can be written or verbal.

(2) An employment agreement that is defined in writing is performed according to the appropriate legal regulations.

Article 52Edit

(1) An employment agreement is made based on:

a. an agreement between two parties;
b. the ability or proficiency to do a legal deed;
c. the availability of the job that has been promised; and
d. the job that has been promised is not in conflict with public decorum, morality and relevant governmental regulations.

(2) An employment agreement that is made by parties which is in conflict with stipulations, in the same manner as is meant in clauses (1a and 1b), can be cancelled.

(3) An employment agreement that is made by parties which is in conflict with stipulations, in the same manner as is meant in clauses (1c and 1d), shall be cancelled because of the law.

Article 53Edit

Every thing and/or expense that is needed for the performance of the making of an employment agreement is done by and becomes the responsibility of the entrepreneur.

Article 54Edit

(1) An employment agreement that is written minimally must contain:

a. the name and address of the enterprise, and what type of business it is;
b. the name, gender, age and address of the worker/laborer;
c. the position or type of work;
d. the workplace;
e. the amount of the wages and the method of payment;
f. working conditions that make up the rights and responsibilities of the entrepreneur and the worker/laborer;
g. the starting date and duration of the validity of the employment agreement;
h. the place and date the employment agreement was made; and
i. the signatures of the parties on the employment agreement.

(2) Stipulations in the employment agreement, in the same manner as is meant in clauses (1e and 1f), can’t be in conflict with the enterprise’s rules and regulations, the joint venture agreement and the relevant governmental regulations.

(3) An employment agreement, in the same manner as is meant in clause (1), must be made in at least duplicate wherein each employment agreement has the same legal power, and the worker/laborer as well as the entrepreneur will each receive 1 (one) employment agreement.

Article 55Edit

The employment agreement cannot be rescinded and/or changed, except with the agreement of all parties.

Article 56Edit

(1) An employment agreement can be made for a specified or unspecified period of time.

(2) An employment agreement for a specified period of time, in the same manner as is meant in clause (1), is based on:

a. duration; and
b. the conclusion of a certain job.

Article 57Edit

(1) An employment agreement for a specified period of time that is in written form must use the Indonesian language and Latin letters.

(2) An employment agreement for a specified period of time that is not in written form and is in conflict with the stipulations, in the same manner as is meant in clause (1), shall be declared as an employment agreement for an unspecified period of time.

(3) In the matter where an employment agreement is made in Indonesian and a foreign language, if at a later date there is a difference of interpretation between the two versions, then the employment agreement which is in Indonesian is considered in force.

Article 58Edit

(1) An employment agreement for a specified period of time can’t have as a condition a probationary period.

(2) In the matter where there is a condition of a probationary period in an employment agreement, in the same manner as is meant in clause (1), the probationary period shall be cancelled because of the law.

Article 59Edit

(1) An employment agreement for a specified period of time can only be made for certain jobs that, according to type and nature or the job activities, will be completed within a specified period of time, such as:

a. A one-time job or one that is temporary in nature;
b. A job that is estimated will be completed in a relatively short period of time and at the most 3 (three) years;
c. work that is seasonal in nature; or
d. a job that is done in connection to a new product, a new activity, or an additional product that is still in the trial or testing stage.

(2) An employment agreement for a specified period of time can’t be for a job that is permanent.

(3) An employment agreement for a specified period of time can be extended or renewed.

(4) An employment agreement for a specified period of time that is based on a specified duration can be for, at most, 2 (two) years and can only be extended 1 (one) time for a period of time no greater than 1 (one) year.

(5) An entrepreneur that intends to extend said employment agreement for a specified period of time, in no less than 7 (seven) days before the employment agreement for a specified period of time ends has to inform the intention in writing to the worker/laborer involved.

(6) The renewal of an employment agreement for a specified period of time can only be after exceeding a grace period of 30 (thirty) days after the end of the old employment agreement for a specified period of time, and this renewal of the employment agreement for a specified period of time can only only be done 1 (one) time and for a maximum of 2 (two) years.

(7) An employment agreement for a specified period of time that doesn’t fulfill the stipulations as intended in clauses (1), (2), (4), (5) and (6) for the sake of the law becomes an employment agreement for an unspecified period of time

(8) Other things that haven’t yet been arranged in this article will be arranged at a later date by Ministerial Decree.

Article 60Edit

(1) An employment agreement for an unspecified period of time can have the condition of a probationary period for a maximum of 3 (three) months. (2) During the probationary period, in the same manner as is meant in clause (1), the entrepreneur is forbidden from paying a wage that is below the approved minimum.

Article 61Edit

(1) An employment agreement ends if:

a. the employee dies;
b. the end of the employment agreement is reached;
c. there is a decision of a court and/or decision or decree of an industrial relations conflict resolution institute that has the power of law; or
d. There is a certain situation or event that has been written in the employment agreement, company regulations, or joint venture agreement that can cause the ending of the employment agreement.

(2) An employment agreement doesn’t end because of the death of the entrepreneur or the mutation of the right of the enterprise which results from asale, an inheritance or a grant.

(3) In the matter of the occurrence of transfer of the enterprise then the rights of the worker/laborer become the responsibility of the new entrepreneur, unless it has been declared otherwise in a transfer agreement which doesn’t decrease the rights of the worker/laborer.

(4) In the matter of the entrepreneur, as an individual, dies, the inheritee of the enterprise can end an employment agreement after negotiating with the worker/laborer.

(5) In the matter where the worker/laborer dies, the inheritee of the deceased has the right to acquire the rights of the deceased in accordance with relevant official ordinances or the rights that have been arranged in the employment agreement, company regulations, or joint venture agreement.

Article 62Edit

If a party ends the working relationship before the end specified in the employment agreement, or it ends the working relationship not because of stipulations as intended in Article 61 clause (1), the party which has ended the working relationship is required to pay an indemnification to the other party(s) in the amount of the worker’s/laborer’s remaining salary until the stated end of the employment agreement.

Article 63Edit

(1) In the matter of a verbal employment agreement with an unspecified duration, the entrepreneur is required to make a letter of appointment for the worker/laborer involved.

(2) The letter of appointment, in the same manner as is meant in clause (1), must at least have the following information:

a. the name and address of the worker/laborer;
b. the date to start working;
c. the type of work; and
d. the amount of the wages.

Article 64Edit

An enterprise can surrender a portion of the performance of a job to another enterprise via a verbal agreement for the outsourcing of work or for the provision of worker/laborer services.

Article 65Edit

(1) The surrendering of a portion of the performance of a job to another enterprise can be done via a written agreement for the outsourcing of work.

(2) A job that can be surrended to another enterprise, in the same manner as is meant in clause (1), must meet the following conditions:

a) Done separately from the main activities;
b) done with the direct or indirect instructions of the employer;
c) is made up of activities supporting the enterprise in an overall manner; and
d) doesn’t directly impede the production process.

(3) Another enterprise, in the same manner as is meant in clause (1), must be in the form of a legal body.

(4) Work protection and work conditions for the worker/laborer in another enterprise, in the same manner as is meant in clause (2), must be at least the same as the work protection and work conditions at the enterprise giving the work or in accordance with the relevant official ordinances.

(5) Changes and/or additions to the conditions, in the same manner as is meant in clause (2), shall be arranged by Ministerial Decree.

(6) The working relationship in job performance, in the same manner as is meant in clause (1), shall be arranged by a written employment agree between the other enterprise and the worker/laborer that is being employed.

(7) The working relationship, in the same manner as is meant in clause (6), can be based on an employment agree with a specified or unspecified duration if it fulfills the conditions as intended in Article 59.

(8) In certain matters, in the same manner as is meant in clauses (2) and (3), that aren’t fulfilled, then for the sake of the law the status of the worker’s/laborer’s working relationship with the enterprise that has accepted the outsourcing mutates to become the worker’s/laborer’s working relationship with the employing enterprise.

(9) In matters of the working relationship that mutates to the employing enterprise as intended in clause (8), then the worker’s/laborer’s working relationship with the employing enterprise shall be in accordance with the working relationship, in the same manner as is meant in clause (7).

Article 66Edit

(1) A worker/laborer from an outsourcing enterprise can’t be used by the employer to do primary activities or activities that are directly related to the production process, except for supporting service activities or activities that aren’t directly connected with the production process.

(2) An outsourcing provider, for supporting activities or activities that aren’t directly related to the production process, must fulfill the following conditions:

a. There is a working relationship between the worker/laborer and the outsourcing enterprise;
b. An employment agreement that is still in force in the working relationship, in the same manner as is meant in part a, is an employment agreement for a specified duration that fulfills the conditions, in the same manner as is meant in Article 59, and/or a written employment agreement with an unspecified duration and signed by both parties;
c. Wage protection and welfare, work conditions, as well as disputes that emerge become the responsibility of the outsourcing enterprise; and
d. An agreement between the enterprise using the outsourcing service and another enterprise that behaves in the same manner as an outsourcing enterprise is made in writing and must include articles in the same manner as is meant in this law.

(3) The provider of the outsourcing service takes the form of a business that is a legal body and has permission from the responsible agency in the area of manpower.

(4) In the matter of stipulations, in the same manner as is meant in clauses (1) and (2a, b and d), as well as clause (3), that aren’t fulfilled, then for the sake of the law the status of the working relationship between the worker/laborer and the outsourcing enterprise mutates to become a working relationship between the worker/laborer and the enterprise that is the employer.

CHAPTER X: PROTECTION, WAGES AND WELFAREEdit

First Section: ProtectionEdit

Paragraph 1: The HandicappedEdit

Article 67Edit

(1) An entrepreneur that employs a handicapped employee is required to give protection that is appropriate to the type and degree of his/her incapacity.

(2) The giving of protection, in the same manner as is meant in clause (1), is performed in accordance with the relevant official ordinances.

Paragraph 2: ChildrenEdit

Article 68Edit

Entrepreneurs are prohibited from employing children.

Article 69Edit

(1) Stipulations, in the same manner as is meant in Article 68, can have an exception for a child that is between the age of 13 (thirteen) to 15 (fifteen) years of age to do light work as long as it doesn’t affect the child’s physical, mental and social development and health.

(2) An entrepreneur that employs a child for light work, in the same manner as is meant in clause (1), must fulfill the following rules and regulations:

a. written permission from a parent or guardian;
b. an employment agreement between the entrepreneur and a parent or guardian;
c. a maximum of 3 (three) working hours;
d. done during the daytime and not so that it interferes with school hours;
e. work safety and health;
f. there is a working relationship that is clear; and
g. receives wages that are in accordance with the relevant stipulations.

(3) Stipulations, in the same manner as is meant in clauses (2a, b, f and g), are exempted for a child that works in his/her family’s enterprise.

Article 70Edit

(1) A child can do work in a workplace that constitutes a section of an educational curriculum or training that has been approved by an authorized official.

(2) A child, in the same manner as is meant in clause (1), must be at least 14 (fourteen) years old.

(3) Work, in the same manner as is meant in clause (1), can be done with these conditions:

a. Given clear instructions about the way to do the work as well as guidance and supervision in the performing of the work; and
b. Given safety protection and work health.
Article 71Edit

(1) A child can do work for the development of his/her talents and interests.

(2) An entrepreneur that employs a child, in the same manner as is meant in clause (1), must fulfill these conditions:

a. Under the direct supervision of a parent or guardian;
b. work hours no greater than 3 (three) hours per day; and
c. conditions and a working environment that don’t affect the child’s physical, mental and social development and school hours.

(3) Stipulations regarding a child that works for to develop his/her talents and interests, in the same manner as is meant in clauses (1) and (2), shall be arranged by Ministerial Decree.

Article 72Edit

In matters of a child that is employed together with adult workers/laborers, then the workplace of the child must be separate from the workplace of the adults.

Article 73Edit

A child is considered to be working if he/she is in a workplace, except if it can be proven otherwise.

Article 74Edit

(1) Anyone is prohibited from employing and involving a child in jobs that are the worst.

(2) Jobs that are the worst, as is meant in clause (1), include:

a. All work in the form of slavery or the like;
b. All work that uses, provides, or offers children for prostitution, the production of pornography, the showing of pornography, or gambling;
c. All work that uses, provides or involves children for the production and sale of alcoholic beverages, narcotics, psychotropics and other substances; and/or

d. All work that endangers the health, safety or morality of the child.

(3) Types of work which endanger the health, safety or morality of a child, in the same manner as is meant in clause (2d), shall be established by Ministerial Decree.

Article 75Edit

(1) The government is required to make the effort to tackle the issue of children working outside of a working relationship.

(2) The effort to tackle the issue, in the same manner as is meant in clause (1), shall be arranged by governmental regulations.

Paragraph 3: WomenEdit

Article 76Edit

(1) A female worker/laborer that is under the age of 18 (eighteen) years old is prohibited from being employed between the hours of 23:00 and 7:00.

(2) An entrepreneur is prohibited from employing a female worker/laborer who is pregnant which, according to a doctor’s declaration, is dangerous for the health and safety of the pregnancy or even the mother herself if she works between the hours of 23:00 and 7:00.

(3) An entrepreneur that employs a female worker/laborer between the hours of 23:00 and 7:00 is required:

a. To give healthful food and drinks; and
b. To care for decency and safety as long as she’s in the workplace.

(4) An entrepreneur is required to provide transportation to and from work for the female worker/laborer that leaves for work and goes home between the hours of 23:00 and 5:00.

Paragraph 4: Work HoursEdit

Article 77Edit

(1) Each employer is required to stipulate work hours.

Heading textEdit

(2) Work hours, in the same manner as is meant in clause (1), includes:

a. 7 (seven) hours in 1 (one) day and 40 (forty) hours in 1 (one) week for a total of 6 (six) work days in 1 (one) week; or
b. 8 (eight) hours in 1 (one) day and 40 (forty) hours in 1 (one) week for a total of 5 (five) work days in 1 (one) week.

(3) Work hour stipulations, in the same manner as is meant in clause (2), aren’t valid for certain business sectors or jobs.

(4) Stipulations about work hours in certain business sectors or jobs, in the same manner as is meant in clause (3), shall be arranged by Ministerial Decree.

Article 78Edit

(1) An entrepreneur that employs a worker/laborer for more work hours, in the same manner as is meant in Article 77 clause (2), must fulfill these conditions:

a. The worker/laborer who is involved has agreed; and
b. Overtime hours can only be for a maximum of 3 (three) hours in 1 (one) day and 14 (fourteen) hours in 1 (one) week.

(2) An entrepreneur that employs a worker/laborer in excess of the work hours, in the same manner as is meant in clause (1), must pay overtime wages.

(3) Stipulations about overtime wages, in the same manner as is meant in clause (1b), aren’t valid for certain business sectors or jobs.

(4) Stipulations about overtime hours and overtime wages, in the same manner as are meant in Article 77 clauses (2) and (3), shall be arranged by Ministerial Decree.

Article 79Edit

(1) An entrepreneur is required to give break time and leave to a worker/laborer.

(2) Break time and leave, in the same manner as is meant in clause (1), includes:

a. A break during work hours, at least ½ (one-half) hour after working for 4 (four) hours continuously and this break time isn’t included in the working hours;
b. A weekly break of 1 (one) day for 6 (six) days worked in 1 (one) week or 2 (two) days for 5 (five) days worked in 1 (one) week;
c. Yearly leave, at least 12 (twelve) working days after the worker/laborer in question has worked for 12 (twelve) months continuously; and
d. A long break of at least 2 (two) months and carried out in the 7th and 8th years, 1 (one) month each, for a worker/laborer who has worked for 6 (six) years continuously in the same enterprise with the stipulation that the worker/laborer involved doesn’t have the right again to take a yearly leave for 2 (two) consecutive years but is then valid every 6 years after that.

(3) The carrying out of yearly leave, in the same manner as is meant in clause (2c), is arranged in the employment agreement, company regulations or the joint venture agreement.

(4) The right for a long break, in the same manner as is meant in clause (2d), is only valid for a worker/laborer that works in certain enterprises.

(5) Certain enterprises, in the same manner as is meant in clause (4), shall be arranged by Ministerial Decree.

Article 80Edit

An employer is required to give enough opportunities to a worker/laborer to perform prayers that are required by his/her religion.

Article 81Edit

(1) A female worker/laborer who feels ill while menstruating and tells the entrepreneur, isn’t required to work on the first and second day of her period.

(2) The performance of the stipulation, in the same manner as is meant in clause (1), is arranged in the employment agreement, company regulations, or joint venture agreement.

Article 82Edit

(1) A female worker/laborer has the right to have a 1.5 (one and a half) month break before giving birth and a 1.5 (one and a half) month break after giving birth according to the gynecologist’s or midwife’s calculations.

(2) A female worker/laborer who experiences a miscarriage has the righ to a leave of 1.5 (one and a half) months or as is recommended in the gynecologist’s or midwife’s statement of health.

Article 83Edit

A female worker/laborer with a child that is still nursing must be given appropriate opportunities to breastfeed the child if it is needs to be done during working hours.

Article 84Edit

Each worker/laborer that uses their right to a break, in the same manner as is intended in Articles 79 clause (2b, c and d), 80 and 82, has the right to get full wages.

Article 85Edit

(1) A worker/laborer isn’t required to work during official holidays.

(2) An entrepreneur can employ a worker/laborer to work during official holidays if the type and nature of the job in question must be performed or done continuously or in other situations based on the agreement between the worker/laborer and the entrepreneur.

(3) An entrepreneur that employs a worker/laborer to work during official holidays, in the same manner as is intended in clause (2), is required to pay overtime wages.

(4) Stipulations about the type and nature of the job, in the same manner as is intended in clause (2), shall be arranged by Ministerial Decree.

Paragraph 5; Work Safety and HealthEdit

Article 86Edit

Each worker/laborer has the right to be protected in regards to:

a. Work safety and health;
b. Morals and decency; and
c. Treatment that is in accordance with the dignity and prestige of humans as well as the values of religion.

(2) To protect worker/laborer safety in order to realize optimal work productivity, efforts towards work safety and health shall be implemented.

(3) Protection, in the same manner as is intended in clauses (1 and 2), shall be performed in accordance with the relevant official ordinances.

Article 87Edit

(1) Each enterprise is required to employ a system of work safety and health management that is integrated into the enterprise’s management system.

(2) Stipulations regarding the implementation of the work safety and health management system, in the same manner as is intended in clause (1), shall be arranged by Governmental Regulations.

Second Section: WagesEdit

Article 88Edit

(1) Each worker/laborer has the right to receive a salary that fulfills a way of living that is humanely suitable.

(2) To realize a salary that fulfills a way of living that is humanely suitable, in the same manner as is intended in clause (1), the government shall establish a wages policy that protects workers/laborers.

(3) The wages policy which protects workers/laborers, in the same manner as is intended in clause (2), includes:

a. minimum wages;
b. overtime wages;
c. wages for when one is hindered from working;
d. wages for when one can’t work because of doing another activity outside of the job;
e. wages for break time;
f. the form and method of payment of wages;
g. fines and wage deductions;
h. things that can be calculated with wages;
i. salary structure and scale that is proportional;
j. salary for the payment of severance pay; and
k. salary for the calculation of income tax.

(4) The government establishes minimum wages, in the same manner as is meant in clause (3a), based on the needs of a proper life and with paying attention to productivity and economic growth.

Article 89Edit

(1) Minimum wages, in the same manner as is meant in clause (3a), can be based on:

a. Minimum wages based on the region of the province or regency/city;
b. Minimum wages based on the sector of the province or regency/city.

(2) Minimum wages, in the same manner as is meant in clause (1), shall be aimed at the attainment the needs of a proper life.

(3) Minimum wages, in the same manner as is meant in clause (1), shall be established by the Governor who shall pay attention to the recommendations of the Provincial Wages Board and/or the Regent/Mayor.

(4) The components as well as the phased execution of the attainment the needs of a proper life, in the same manner as is meant in clause (2), shall be arranged by Ministerial Decree.

Article 90Edit

(1) An entrepreneur is prohibited from paying wages that are lower than the minimum wages, in the same manner as is meant in Article 89.

(2) For an entrepreneur that is unable to pay the minimum wages, in the same manner as is meant in Article 89, a deferment can be done.

(3) The method of deferment, in the same manner as is meant in clause (2), shall be arranged by Ministerial Decree.

Article 91Edit

(1) The arrangement of wages that has been established by an agreement between the entrepreneur and a worker(s)/laborer(s) or a workers’/laborers’ union cannot be lower than the wages stipulations that have been established by the relevant official ordinances.

(2) In the matter of the agreement, in the same manner as is meant in clause (1), where the wages are lower than or in conflict with the governmental regulations, said agreement is cancelled for the sake of the law, and the entrepreneur is required to pay worker/laborer wages according to the relevant official ordinances.

Article 92Edit

(1) An entrepreneur arranges the salary structure and scale by paying attention to class, title, seniority, education and competencies.

(2) An entrepreneur performs a wages review periodically by paying attention to the capability of the enterprise and productivity.

(3) Stipulations regarding the salary structure and scare, in the same manner as is meant in clause (1), shall be arranged by Ministerial Decree.

Article 93Edit

(1) Wages aren’t paid if a worker/laborer doesn’t do his/her job.

(2) Stipulations, in the same manner as is meant in clause (1), are invalid, and the entrepreneur is required to pay if:

a. a worker/laborer is so sick that he/she cannot do his/her job;
b. a female worker/laborer is ill during the first and second days of her menstruation to the point where she can’t do her job;
c. a worker/laborer doesn’t go to work because the worker/laborer gets married, marries a couple, is circumsized, baptizes his/her child, his wife gives birth or miscarries, the husband or wife or child or son/daughter-in-law or parent or parent-in-law or a family member in the same house dies;
d. a worker/laborer can’t do his/her job because he/she is fulfilling a duty to the country;
e. a worker/laborer can’t do his/her job because he/she performs prayers that are ordered by his/her religion;
f. a worker/laborer is willing to do his job that has been promised but the entrepreneur doesn’t employ him/her, either because of his/her own fault or because of some sort of hindrance that should have been avoided by the entrepreneur;
g. a worker/laborer executes his/her right to a break;
h. a worker/laborer executes his/her worker/laborer union tasks with the agreement of the entrepreneur; and
i. a worker/laborer executes an education task from the enterprise.

(3) Wages that are paid to a worker/laborer who is sick, in the same manner as is meant in clause (2a), are as follows:

a. For the first 4 (four) months, paid 100% (one hundred percent) of wages;
b. For the second 4 (four) months, paid 75% (seventy-five percent) of wages;
c. For the third 4 (four) months, paid 50% (fifty percent) of wages; and
d. For ensuing months paid 25% (twenty-five percent) of wages before the termination of the working relationship is done by the entrepreneur.

(4) Wages that are paid to a worker/laborer that doesn’t go to work, in the same manner as is meant in clause (2c), are as follows:

a. a worker/laborer who marries, paid for up to 3 (three) days;
b. a worker/laborer whose child gets married, paid for up to 2 (two) days;
c. a worker/laborer whose child is circumsized, paid for up to 2 (two) days;
d. a worker/laborer whose child is baptized, paid for up to 2 (two) days;
e. a worker/laborer whose wife gives birth or miscarries, paid for up to 2 (two) days;
f. a worker/laborer whose spouse, parent, parent-in-law, child or son/daughter-in-law dies, paid for up to 2 (two) days;
g. a worker/laborer who has some other type of family member who lives in the same house that dies, paid for up to 1 (one) day;

(5) The systematization of the performance of the stipulations, in the same manner as is meant in clause (2), are established in the employment agreement, company regulations, or joint venture agreement.

Article 94Edit

In the matter of the wage components that are composed of the basic wages and regular subsidy then the size of the basic wages should be at least 75% (seventy-five percent) of the basic wages and regular subsidy.

Article 95Edit

(1) Deliberate or negligent violations that are done by a worker/laborer can be fined.

(2) An entrepreneur who deliberately or negligently causes the late payment of wages, is fined according to a specific percentage of the worker’s/laborer’s wages.

(3) The government determines the application of fines against an entrepreneur and/or a worker/laborer in the payment of wages.

(4) In the matter of an enterprise that is declared bankrupt or liquidated based on the relevant official ordinances, then wages and the other rights of workers/laborers constitutes the debt that must be paid first.

Article 96Edit

Worker/laborer wage payment demands and all payments that arise from a working relationship expire after exceeding 2 (two) years from the emergence of said right.

Article 97Edit

Stipulations regarding fair salaries, wage policies, the needs of a proper life, and salary protection, in the same manner as is meant in Article 88, the establishment of minimum wages, in the same manner as is meant in Article 89, and the application of fines, in the same manner as is meant in Article 95, clauses (1), (2), and (3), shall be arranged by Governmental Regulations.

Article 98Edit

(1) To give advice, opinions and formulate wage policies that will be established by the government, as well as the development of a national wage system, National, Provincial and Regency/City Wage Councils shall be formed.

(2) The membership of the Wage Councils, in the same manner as is meant in clause (1), is based on elements from the government, entrepreneurial organizations, worker/laborer unions, higher education and experts in the field.

(3) The membership of the National Wage Council shall be assigned and removed by the President, whereas the membership of the Provincial, Regency/City Wage Councils shall be assigned and removed by the Governor/Regent/Mayor.

(4) Stipulations about the method of formation, the membership composition, the method of assigning and removing members, as well as the tasks and work rules of the Wage Councils, in the same manner as is meant in clauses (1) and (2), shall be arranged by Presidential Decree.

Third Section: WelfareEdit

Article 99Edit

(1) Each worker/laborer and his/her family have the right to get worker’s compensation insurance.

(2) Worker’s compensation insurance, in the same manner as is meant in clause (1), is performed according to the relevant official ordinances.

Article 100Edit

(1) To improve welfare for workers/laborers and their families, entrepreneurs are required to provide welfare facilities.

(2) The provision of welfare facilities, in the same manner as is meant in clause (1), is performed while paying attention to the needs of the workers/laborers and the measurement of the enterprise’s ability to provide them.

(3) Stipulations about the type and criteria for welfare facilities in accordance with the needs of workers/laborers and the measurement of the enterprise’s ability to provide them, in the same manner as is meant in clauses (1) and (2), shall be arranged by Governmental Regulations.

Article 101Edit

(1) To improve worker/laborer welfare, a cooperative for workers/laborers and productive businesses is formed in the enterprise.

(2) The government, entrepreneurs, and workers/laborers or workers’/laborers’ unions should make serious efforts to stimulate the growth of workers’/laborers’ cooperatives, and develop productive businesses, in the same manner as is meant in clause (1).

(3) The formation of the cooperatives, in the same manner as is meant in clause (1), shall be performed in accordance with the relevant official ordinances.

(4) Efforts to stimulate the growth of workers’/laborers’ cooperatives, in the same manner as is meant in clause (2), shall be arranged by Governmental Regulations.

CHAPTER XI: INDUSTRIAL RELATIONSEdit

First Section: GeneralEdit

Article 102Edit

(1) In bringing about industrial relations, the government has the function of establishing policies, providing services, performing supervision, and taking measures against violations of the official ordinances about manpower.

(2) In bringing about industrial relations, workers/laborers and workers’/laborers’ unions have the function of doing their work in accordance with the requirements, overseeing orderliness for the directness of productivity, channeling aspirations democratically, developing skills and expertises, as well as taking part in modernization of the enterprise and struggling for the welface of members and their families.

(3) In bringing about industrial relations, the entrepreneur and entrepreneurial organizations have the function of creating partnerships, developing business, expanding the field of work, and giving welfare to the workers/laborers in an open, democratic and fair way.

Article 103Edit

Industrial Relations are brought about by means of:

a. workers’/laborers’ unions;
b. entrepreneurial organizations;
c. bipartite cooperative institutes;
d. tripartite cooperative institutes;
e. company rules and regulations;
f. joint venture agreements;
g. official ordinances about manpower; and
h. industrial relations conflict resolution institutes.

Second Section: Workers’/Laborers’ UnionsEdit

Article 104Edit

(1) Every worker/laborer has the right to form and become a member of a workers’ union/laborers’ union.

(2) In the performing of functions, in the same manner as is meant in Article 102, workers’ unions/laborers’ unions have the right to assemble and manage finances, as well as take responsibility for the organizational finances, including strike funds.

(3) The size and method of collecting strike funds, in the same manner as is meant in clause (2), is arranged within the basic budget and/or the relevant workers’ union’s/laborers’ union’s household budget(s).

Third Section: Entrepreneurial OrganizationsEdit

Article 105Edit

(1) Every entrepreneur has the right to form and become a member of an entrepreneurial organization.

(2) Stipulations regarding entrepreneurial organizations are arranged in accordance with the relevant official ordinances.

Fourth Section: Bipartite Cooperative InstitutesEdit

Article 106Edit

(1) Every enterprise that employs 50 (fifty) or more workers/laborers must form a bipartite cooperative institute.

(2) A bipartite cooperative institute, in the same manner as is meant in clause (1), functions in the same manner as a forum of communication and consultation about manpower rights in an enterprise.

(3) The composition of the bipartite cooperative institute’s membership, in the same manner as is meant in clause (2), is founded on elements from entrepreneurs and elements from workers/laborers that have been chosen by the workers/laborers democratically to represent the interests of the workers/laborers in the enterprise that is involved.

(4) Stipulations regarding the method of the formation and composition of the membership of the bipartite cooperative institute, in the same manner as is meant in clauses (1) and (3), shall be arranged by Ministerial Decree.

Fifth Section: Tripartite Cooperative InstituteEdit

Article 107Edit

(1) A tripartite cooperative institute gives considerations, advice and opinions to the government and other parties that are involved in the formation of policies and the resolution of manpower issues.

(2) A tripartite cooperative institute, in the same manner as is meant in clause (1), is based on:

a. National, Provincial, Regency/City tripartite cooperative institutes; and
b. National, Provincial, Regency/City sectoral tripartite cooperative institutes.

(3) The membership of a tripartite cooperative institute is composed of elements from the government, entrepreneurial organizations and workers’ unions/laborers’ unions.

(4) The work methods and organizational structure of a tripartite cooperative institute, in the same manner as is meant in clause (1), shall be arranged by Governmental Regulations.

Sixth Section: Enterprise Rules and RegulationsEdit

Article 108Edit

(1) An Entrepreneur that employs at least 10 (ten) workers/laborers must make enterprise rules and regulations that come into effect after they’ve been approvd by the Minister or an appointed official.

(2) The requirement to make enterprise rules and regulations, in the same manner as is meant in clause (1), aren’t valid for enterprises that already have a joint venture agreement.

Article 109Edit

Enterprise rules and regulations are arranged by and become the responsibility of the entrepreneur who is involved.

Article 110Edit

(1) Enterprise rules and regulations are arranged with attention paid to the advice and considerations from representatives of the workers/laborers in the enterprise in question.

(2) In matters where the enterprise in question has formed a workers’ union/laborers’ union, then the representatives of the workers/laborers, in the same manner as is meant in clause (1), are the management of the workers’ union/laborers’ union.

(3) In matters where the enterprise in question has yet to form a workers’ union/laborers’ union, the workers’/laborers’ representative, in the same manner as is meant in clause (1), is a worker/laborer that was chosen democratically to represent the interests of the workers/laborers in the enterprise in question.

Article 111Edit

(1) Enterprise rules and regulations at least include:

a. The rights and obligations of the entrepreneur;
b. The rights and obligations of the workers/laborers;
c. The working conditions;
d. The rules of order of the enterprise; and
e. The duration of the validity of the enterprise rules and regulations.

(2) Stipulations in the enterprise rules and regulations can’t be in conflict with the stipulations of the relevant governmental regulations.

(3) The duration of the validity of the enterprise rules and regulations is at most 2 (two) years and must be renewed when the expiration date is reached.

(4) During the validity of the enterprise rules and regulations, if the workers’ union/laborers’ union in the enterprise wishes for a negotiation of the making of a joint venture agreement, then the entrepreneur must supply it.

(5) In the matter of the negotiation of the making of a joint venture agreement, in the same manner as is meant in clause (4), doesn’t result in an agreement, then the enterprise rules and regulations remain in force until the end of their period of validity.

Article 112Edit

(1) The endorsement of enterprise rules and regulations by the Minister or an appointed official, in the same manner as is meant in Article 108, clause (1), must have already been given within no more than 30 (thirty) work days after the orginal text of the enterprise rules and regulations were received.

(2) If the enterprise rules and regulations are appropriate in the same manner as the stipulations in Article 111, clauses (1) and (2), then in 30 (thirty) work days, in the same manner as is meant in clause (1), have already passed and the enterprise rules and regulations haven’t yet been endorsed by the Minister or an appointed official, then the enterprise rules and regulations are considered as having already been endorsed.

(3) In matters where the enterprise rules and regulations don’t yet meet the conditions, in the same manner as is meant in Article 111, clauses (1) and (2), the Minister or an appointed official must advise the entrepreneur in writing about the amelioration of the enterprise rules and regulations.

(4) In a maximum of 14 (fourteen) work days from the date the notification was received by the entrepreneur, in the same manner as is meant in clause (3), the entrepreneur is required to resubmit the enterprise rules and regulations that have been ameliorated to the Minister or an appointed official.

Article 113Edit

(1) Changes to the enterprise rules and regulations before the end of its period of validity can only be done based on an agreement between the entrepreneur and the workers’/laborers’ representative(s).

(2) Enterprise rules and regulations that are the results of changes, in the same manner as is meant in clause (1), must get the endorsement of the Minister or an appointed official.

Article 114Edit

The entrepreneur is required to inform and clarify the contents as well as give the original document of the enterprise rules and regulations or its changes to the workers/laborers.

Article 115Edit

Stipulations regarding the method of making and endorsing the enterprise rules and regulations shall be arranged by Ministerial Decree.

Seventh Section: Joint Venture AgreementEdit

Article 116Edit

(1) A joint venture agreement is made between one or more workers’ union/laborers’ union, which have been registered with the responsible agency in the area of manpower, with one or more entrepreneurs.

(2) Composing a joint venture agreement, in the same manner as is meant in clause (1), is performed via deliberation.

(3) A joint venture agreement, in the same manner as is meant in clause (1), must be made in writing using Latin letters and the Indonesian language.

(4) In matters where the joint venture agreement was made without the use of Indonesian, then the joint venture agreement must be translated into Indonesian by a sworn translator and said translation is considered as already fulfilling the stipulation meant in clause (3).

Article 117Edit

In the matter of deliberations, in the same manner as is meant in Article 116, clause (2), where an agreement isn’t reached, then the resolution shall be done via industrial relations conflict resolution procedures.

Article 118Edit

In 1 (one) enterprise, there can only have been made 1 (one) joint venture agreement that is valid for all of the workers/laborers in the enterprise.

Article 119Edit

(1) In matters of one enterprise that only has one workers’ union/laborers’ union, then the one workers’ union/laborers’ union in question has the right to represent the workers/laborers in negotiations for the making of the joint venture agreement with the entrepreneur if the union constitutes more than 50% (fifty percent) of all of the workers/laborers in the enterprise in question.

(2) In matters of one enterprise that only has one workers’ union/laborers’ union, in the same manner as is meant in clause (1), but it doesn’t have at least 50% (fifty percent) of all of the workers/laborers in the enterprise in question, then the workers’ union/laborers’ union can represent all of the workers/laborers in the negotiations with the entrepreneur if it has received the support of more than 50% (fifty percent) of all of the workers/laborers in the enterprise via voting.

(3) In matters of support, in the same manner as is meant in clause (2), that isn’t achieved, then the workers’ union/laborers’ union in question can again advance a request to negotiate a joint venture agreement with the entrepreneur after 6 (six) months have passed, counted from the performance of the voting by following the procedure, in the same manner as is meant in clause (2).

Article 120Edit

(1) In the matter where one enterprise has more than one workers’ union/laborers’ union, then the union which has the right to represent the workers/laborers in the performing of the negotiations with the enterprise is the one that contains more than 50% (fifty percent) of all of the workers/laborers in the enterprise in question.

(2) In matters of the stipulations, in the same manner as is meant in clause (1), aren’t met, then the workers’ union/laborers’ union can make a coalition to reach more than 50% (fifty percent) of all of the workers/laborers in the enterprise in question to represent them in the negotiations with the entrepreneur.

(3) In matters of the stipulations, in the same manner as is meant in clauses (1) or (2), aren’t met, then the workers’ union/laborers’ union can form a negotiations team with membership that is determined proportionally based on the number of members in each workers’ union/laborers’ union.

Article 121Edit

The membership of the workers’ union/laborers’ union, in the same manner as is meant in Articles 119 and 120, is proven with membership cards.

Article 122Edit

Voting, in the same manner as is meant in Article 119, clause (2), shall be executed by a committee, which is formed of representatives of the workers/laborers and the management of the workers’ union/laborers’ union, who have been witnessed by an official party that is responsible in the areas of manpower and enterprises.

Article 123Edit

(1) The duration of the validity of the joint venture agreement is a maximum of 2 (two) years.

(2) The joint venture agreement, in the same manner as is meant in clause (1), can be extended for at most 1 (one) more year based on a written agreement between the entrepreneur and the workers’ union/laborers’ union.

(3) Negotiations for the making of a joint venture agreement as follows can be started as soon as 3 (three) months before the end of the joint venture agreement that is already in force.

(4) In the matter of negotiations, in the same manner as is meant in clause (3), that don’t culminate in an agreement, then the currently valid joint venture agreement continues to be valid for a maximum of 1 (one) year.

Article 124Edit

(1) A joint venture agreement must at least contain:

a. The rights and obligations of the entrepreneur;
b. The rights and obligations of the workers’ union/laborers’ union as well as the workers/laborers;
c. The duration and start date of the validity of the joint venture agreement; and
d. The signatures of the parties that made the joint venture agreement.

(2) Stipulations in the joint venture agreement can’t be at odds with relevant official ordinances.

(3) In the matter of the contents of the joint venture agreement that are at odds with relevant official ordinances, in the same manner as is meant in clause (2), then the conflicting stipulations are cancelled for the sake of the law and the stipulations from the governmental regulations are valid.

Article 125Edit

In the matter where both parties agree to make changes to the joint venture agreement, then the changes referred to constitute parts that can’t be separated from the joint venture agreement that is currently in force.

Article 126Edit

(1) The entrepreneur, the workers’ union/laborers’ union and the workers/laborers must abide by the stipulations that are contains in the joint venture agreement.

(2) The entrepreneur and the workers’ union/laborers’ union must inform the workers/laborers of the contents of the joint venture agreement or changes to it.

(3) The entrepreneur must print out and distribute copies of the joint venture agreement to each worker/laborer at the cost of the entrepreneur.

Article 127Edit

(1) An employment agreement that is made by the entrepreneur and the workers/laborers cannot be in conflict with the joint venture agreement.

(2) In the case of stipulations in the employment agreement, in the same manner as is meant in clause (1), that are in conflict with the joint venture agreement, then the stipulations in said employment agreement are cancelled for the sake of the law and the ones that are valid are the stipulations in the joint venture agreement.

Article 128Edit

In the case where the employment agreement doesn’t contain the rules that are arranged in the joint venture agreement, then the rules that are valid are those in the joint venture agreement.

Article 129Edit

(1) The entrepreneur is forbidden from replacing the joint venture agreement with enterprise regulations, as long as in the enterprise in question there is still a workers’/laborers’ union.

(2) In the case of an enterprise that no longer has a workers’/laborers’ union and the joint venture agreement has been replaced with enterprise regulations, then the stipulations that are in the enterprise regulations can’t be worse than the stipulations that are in the joint venture agreement.

Article 130Edit

(1) In the case of a joint venture agreement that has already expired and it’s going to be extended or renewed and the enterprise in question only has 1 (one) workers’/laborers’ union, then the extension or making of the renewal of the joint venture agreement doesn’t have the stipulations in Article 119.

(2) In the case of a joint venture agreement that has already expired and it’s going to be extended or renewed and the enterprise in question has more than 1 (one) workers’/laborers’ union, and the workers’/laborers’ union previously negotiated no longer meets the stipulations in Article 120, clause (1), then the extension or making of the renewal of the joint venture agreement is performed by the workers’/laborers’ union which contains more than 50% (fifty percent) of all of the workers/laborers in the enterprise along with the workers’/laborers’ union that made the previous joint venture agreement by forming a negotiation team that is proportional.

(3) In the case of a joint venture agreement that has already expired and it’s going to be extended or renewed and the enterprise in question has more than 1 (one) workers’/laborers’ union, but none of the workers’/laborers’ unions fulfill the stipulations of Article 120, clause (1), then the extension or the making of the renewal of the joint venture agreement shall be done according to the stipulations in Article 120, clauses (2) and (3).

Article 131Edit

(1) In the case where the disbandment of a workers’/laborers’ union or a change in the ownership of the enterprise, then the joint venture agreement remains valid until the end of its duration.

(2) In the case where there is a merger and each enterprise has a joint venture agreement, then the joint venture agreement that becomes valid is the joint venture agreement that is more beneficial for the workers/laborers.

(3) In the case where there is a merger and only one of the enterprises has a joint venture agreement, then that joint venture agreement is valid for the mergered enterprises until the end of its validity duration.

Article 132Edit

(1) A joint venture agreement comes into force on the day that it has been signed unless stipulated otherwise in that joint venture agreement.

(2) A joint venture agreement that has been signed by the parties that made the joint venture agreement are then registered by the entrepreneur to the responsible agency in the area of manpower.

Article 133Edit

Stipulations about the conditions as well as the way to make, extend, change and register a joint venture agreement shall be arranged by Ministerial Decree.

Article 134Edit

In realizing the performance of the rights and obligations of the workers/laborers and the entrepreneur, the government must perform supervision and the enforcement of official ordinances about manpower.

Article 135Edit

The performance of official ordinances about manpower in realizing industrial relations constitutes the responsibility of the workers/laborers, the entrepreneur and the government.

Eighth Section: Industrial Relations Conflict Resolution InstituteEdit

Paragraph 1: Industrial Relations ConflictEdit

Article 136Edit

(1) The conclusion of industrial relations conflicts must be done by the enterprise and the workers/laborers or workers’/laborers’ union through discussion to reach consensus.

(2) In the case where the conclusion of industrial relations conflicts through discussion to reach consensus, in the same manner as is meant in clause (1), isn’t reached, then the entrepreneur and the workers/laborers or workers’/laborers’ union shall resolve the industrial relations conflicts via the prosedures for the resolution of industrial relations conflicts that are arranged by this law.

Paragraph 2: StrikingEdit

Article 137Edit

Striking as a basic right of workers/laborers and workers’/laborers’ union is done legally, orderly and peacefully as the result of the failure of the negotiations.

Article 138Edit

(1) The workers/laborers and/or workers’/laborers’ union that intends to invite other workers/laborers to strike at the time of the strike shall do so without violating the law.

(2) The workers/laborers that are invited to strike, in the same manner as is meant in clause (1), can comply or not comply with the invitation.

Article 139Edit

The performance of a strike by the workers/laborers that work at an enterprise that services the interests of the public and/or the type of enterprise that does actions which endanger the safety of human life shall be arranged in such a way as to not bother the public interests and/or endanger the safety of other people.

Article 140Edit

(1) In at least 7 (seven) days before the strike is executed, workers/laborers and the workers’/laborers’ union must inform the entrepreneur and the local agency responsible in the area of manpower in writing.

(2) The announcement, in the same manner as is meant in clause (1), shall at least contain:

a. The time (day, date and hours) that the strike will be started and finished;
b. The location of the strike;
c. The reason and motives why the strike must be done; and
d. The signature of the head(s) and secretary(ies) of the the workers’/laborers’ union as the guarantor of the strike.

(3) In the case of a strike that will be done workers/laborers that aren’t members of a workers’/laborers’ union, then the announcement, in the same manner as is meant in clause (2), shall be signed by representatives of the workers/laborers that were appointed as coordinators and/or guarantors of the strike.

(4) In the case of a strike that isn’t done, in the same manner as is meant in clause (1), then to save the production tools and enterprise assets, the entrepreneur can take a temporary action in this way:

a. Forbid the workers/laborers from striking near the the location of the production process activities; or
b. If it’s considered necessary, forbid the striking workers/laborers from being near the enterprise location.
Article 141Edit

(1) The governmental agencies and enterprise parties that receive the letter of announcement of the strike, in the same manner as is meant in Article 140, must give a receipt.

(2) Before and during the strike, the responsible agency in the area of manpower must resolve the conflict that caused the strike by meeting and negotiating with the parties that are in conflict.

(3) In the case where the negotiations, in the same manner as is meant in clause (2), results in an agreement, then the cooperative agreement must be made that is signed by the parties and the official(s) from the responsible agency in the area of manpower as witness(es).

(4) In the case where the negotiations, in the same manner as is meant in clause (2), don’t result in an agreement, then the official(s) from the responsible agency in the area of manpower shall immediately surrender the problem that has caused the strike to the industrial relations conflict resolution institute in power.

(5) In the case where the negotiations don’t result in an agreement, in the same manner as is meant in clause (4), then based on the negotiations between the entrepreneur and the workers’/laborers’ union or the guarantor of the strike, the strike can be continued, stopped for a while or completely stopped.

Article 142Edit

(1) A strike that is done which doesn’t fulfill the stipulations, in the same manner as is meant in Articles 139 and 140, is an illegal strike.

(2) The legal consequences of an illegal strike, in the same manner as is meant in clause (1), shall be arranged by Ministerial Decree

Article 143Edit

(1) Nobody can hinder the workers/laborers and the workers’/laborers’ union from using their right to strike when it is done legally, in an orderly way and peacefully.

(2) Everyone is forbidden from performing an arrest and or a detention of the workers/laborers and the workers’/laborers’ union management that is performing a strike that is legal, orderly and peaceful in accordance with the relevant official ordinances.

Article 144Edit

Concerning a strike that is done accordance with the stipulations, in the same manner as is meant in Article 140, the entrepreneur is forbidden from:

a. Replacing the striking workers/laborers with other workers/laborers from outside the enterprise; or
b. Giving sanctions or vengeful actions in any form against the workers/laborers and the workers’/laborers’ union management during and after the strike.
Article 145Edit

In the case of workers/laborers that strike legally, in demanding their normative rights that have really been forbidden by the entrepreneur, the workers/laborers have the right to get their wages.

Paragraph 3: Enterprise Closure (Lock-out)Edit

Article 146Edit

(1) An enterprise closure (lock-out) constitutes the basic right of the entrepreneur to reject some or all of the workers/laborers from doing their work as the result of failed negotiations.

(2) An entrepreneur isn’t allowed to do an enterprise closure (lock-out) as a vengeful action in connection with normative demands from the workers/laborers and/or workers’/laborers’ union.

(3) The action of an enterprise closure (lock-out) must be done according to the relevant legal stipulations.

Article 147Edit

An enterprise closure (lock-out) is forbidden from being done by enterprises that serve the public interests and/or types of actions that endanger human lives, such as hospitals, water treatment facilities, telecommunications control centers, electricity supply centers, oil and gas processing plants, as well as trains.

Article 148Edit

(1) The entrepreneur must make a written announcement to the workers/laborers and/or the workers’/laborers’ union, as well as the responsible agency in the area of manpower at least 7 (seven) work days before the enterprise closure (lock-out) is performed.

(2) The announcement, in the same manner as is meant in clause (1), should at least contain:

a. Time (day, date and hours) the enterprise closure (lock-out) will be started and finished; and
b. The reasons and motives for performing the enterprise closure (lock-out).

(3) The announcement, in the same manner as is meant in clause (1), is to be signed by the entrepreneur and/or the leader of the enterprise involved.

Article 149Edit

(1) The workers/laborers or the workers’/laborers’ union and the responsible agency in the area of manpower that directly receive the letter of the announcement of the enterprise closure (lock-out), in the same manner as is meant in Article 148, must give a receipt that shows the day, date and hour of receipt.

(2) Before and during the enterprise closure (lock-out), the responsible agency in the area of manpower has the power to directly conclude the problem that caused the enterprise closure (lock-out) by meeting and negotiating with the parties that are in conflict.

(3) In the case where negotiations, in the same manner as is meant in clause (2), result in an agreement, then the cooperative agreement must be made that is signed by the parties, and the responsible agency in the area of manpower as witness.

(4) In the case where negotiations, in the same manner as is meant in clause (2), don’t result in an agreement, then the official from the responsible agency in the area of manpower shall immediately refer the problem that has caused the enterprise closure (lock-out) to happen to an industrial relations conflict resolution institute.

(5) If the negotiations don’t result in an agreement, in the same manner as is meant in clause (4), then based on the negotiations between the entrepreneur and the workers’/laborers’ union, the enterprise closure (lock-out) can be continued, stopped temporarily or stopped completely.

(6) The announcement, in the same manner as is meant in Article 148, clauses (1) and (2), isn’t needed if:

a. A worker/laborer or workers’/laborers’ union violates the strike procedure, in the same manner as is meant in Article 140;
b. A worker/laborer or workers’/laborers’ union violates the normative stipulations that have been established in the employment agreement, enterprise regulations, joint venture agreement, or the relevant official ordinances.

CHAPTER XII: TERMINATION OF EMPLOYMENTEdit

Article 150Edit

Stipulations about the termination of employment in this law cover those which happen in the body of an enterprise that is embodied in the law or not; is owned by an individual, alliance or legal body; is either privately or publicly owned; are either social enterprises and other enterprises that have management and employ other people with the paying of wages or other forms of remuneratrion.

Article 151Edit

(1) An entrepreneur, worker/laborer, workers’/laborers’ union and the government, with every effort must manage so that a termination of employment doesn’t occur.

(2) In the case where every effort has been made, but termination of employment can’t be hindered, then the purpose of the termination of employment must be negotiated by the entrepreneur and the workers’/laborers’ union, or with the worker/laborer if the worker/laborer in question isn’t a member of a workers’/laborers’ union.

(3) In the case where the negotiations, in the same manner as is meant in clause (2), truly don’t produce an agreement, the entrepreneur can only terminate the employment of the worker/laborer after acquiring a decision from an industrial relations conflict resolution institute.

Article 152Edit

(1) The request for a decision from an industrial relations conflict resolution institute shall be submitted in writing to the industrial relations conflict resolution institute as well as the reason for the request.

(2) The request for a decision, in the same manner as is meant in clause (1), can be received by an industrial relations conflict resolution institute if there have been negotiations, in the same manner as is meant in Article 151, clause (2).

(3) The decision about the employment termination request can only be given by an industrial relations conflict resolution institute if it turns out the meaning of the employment termination has been discussed, but the negotiations didn’t result in an agreement.

Article 153Edit

(1) The entrepreneur is forbidden from performing an employment termination with the reason:

a. The worker/laborer was hindered from entering work due to illness according to a doctor’s declaration of health, for a maximum of 12 (twelve) consecutive months;
b. The worker/laborer was hindered from doing his/her work because he/she was fulfilling his responsibility to his country in accordance with the stipulations of the relevant official ordinances;
c. The worker/laborer was doing prayers that are required by his/her religion;
d. The worker/laborer got married;
e. The female worker/laborer is pregnant, gives birth, miscarries or is nursing her baby;
f. The worker/laborer has a blood or marital relationship with another worker/laborer in the same enterprise, unless it has already been arranged in the employment agreement, enterprise regulations or the joint venture agreement;
g. The worker/laborer founds, becomes a member and/or management of a workers’/laborers’ union, the worker/laborer does activities for the workers’/laborers’ union outside of work hours, or during work house with the agreement of the entrepreneur, or based on stipulations that are arranged in the employment agreement, enterprise regulations or the joint venture agreement;
h. The worker/laborer that complains to the entrepreneur in charge about the entrepreneur’s deeds that are criminal acts;
i. Because of a difference in understanding, religion, political beliefs, ethnicity, skin color, class, gender, physical condition, or marital status;
j. The worker/laborer is permanently disabled, ill due to a work accident, or ill because of work relations wherein, according to the doctor’s letter, the duration of healing can’t yet be determined.

(2) An employment termination that is done with a reason in the same manner as is meant in clause (1) is cancelled for the sake of the law and the entrepreneur must reemploy the worker/laborer in question.

Article 154Edit

A decision, in the same manner as is meant in Article 151, clause (3), isn’t needed in the case where:

a. The worker/laborer is still in his/her probationary period, if such was a prior written condition;
b. The worker/laborer submits a letter of resignation of his/her own volition without any indications of pressure/intimidation from the entrepreneur, then the working relationship ends in accordance with the employment agreement of a specified duration for the first time;
c. The worker/laborer reaches retirement age in accordance with the stipulations in the employment agreement, enterprise regulations, joint venture agreement, or the official ordinances; or
d. The worker/laborer dies.

Article 155Edit

(1) An employment termination without a decision, in the same manner as is meant in Article 151, clause (3), is cancelled for the sake of the law.

(2) As long as the decision of the industrial relations conflict resolution institute hasn’t yet been issued, both the entrepreneur as well as the worker/laborer must still fulfill all their obligations.

(3) An entrepreneur can do a divergence from the stipulations, in the same manner as is meant in clause (2), in the form of disciplinary actions for the worker/laborer that is in the process of employment termination but must still pay wages along with other rights that are usually accepted by the worker/laborer.

Article 156Edit

(1) In the case where employment termination happens, the entrepreneur is required to pay severance pay and/or appreciation pay for the period of employment, and replacement pay for the rights that should have been received.

(2) The calculation of severance pay, in the same manner as is meant in clause (1), is at least as follows:

a. For an employment period of less than 1 (one) year, 1 (one) month’s salary;
b. For an employment period of 1 (one) year or more but less than 2 (two) years, 2 (two) months’ salary;
c. For an employment period of 2 (two) years or more but less than 3 (three) years, 3 (three) months’ salary;
d. For an employment period of 3 (three) years or more but less than 4 (four) years, 4 (four) months’ salary;
e. For an employment period of 4 (four) years or more but less than 5 (five) years, 5 (five) months’ salary;
f. For an employment period of 5 (five) years or more but less than 6 (six) years, 6 (six) months’ salary;
g. For an employment period of 6 (six) years or more but less than 7 (seven) years, 7 (seven) months’ salary;
h. For an employment period of 7 (seven) years or more but less than 8 (eight) years, 8 (eight) months’ salary;
i. For an employment period of 8 (eight) years or more, 9 (nine) months’ salary.

(3) The calculation of employment appreciation pay, in the same manner as is meant in clause (1), is at least as follows:

a. For an employment period of 3 (three) years or more but less than 6 (six) years, 2 (two) months’ salary;
b. For an employment period of 6 (six) years or more but less than 9 (nine) years, 3 (three) months’ salary;
c. For an employment period of 9 (nine) years or more but less than 12 (twelve) years, 4 (four) months’ salary;
d. For an employment period of 12 (twelve) years or more but less than 15 (fifteen) years, 5 (five) months’ salary;
e. For an employment period of 15 (fifteen) years or more but less than 18 (eighteen) years, 6 (six) months’ salary;
f. For an employment period of 18 (eighteen) years or more but less than 21 (twenty-one) years, 7 (seven) months’ salary;
g. For an employment period of 21 (twenty-one) years or more but less than 24 (twenty-one) years, 8 (eight) months’ salary;
h. For an employment period of 24 (twenty-four) years or more, 10 (ten) months’ salary;

(4) The calculation of right replacement pay, in the same manner as is meant in clause (1), is at least as follows:

a. Unused and still valid yearly leave;
b. Fees or expenses to go home for the worker/laborer and his/her family to the place where the worker/laborer has been accepted to work;
c. Housing replacement as well as medication and nursing are established at 15% (fifteen percent) of the severance pay and/or employment appreciation pay for those who meet the conditions;
d. Other things that are established in the employment agreement, enterprise regulations or joint venture agreement.

(5) Changes in the calculation of the severance, appreciation and right replacement pay, in the same manner as is meant in clauses (2), (3), (4), shall be established by Governmental Regulations.

Article 157Edit

(1) Wage components that are used as the basis of the calculation of severance, appreciation and right replacement pay that should have been received but were delayed, are based on:

a. basic salary;
b. all types of subsidies which are permanent that are given to the worker/laborer and his/her family, including the purchase price of a portion that is given to the worker/laborer freely, that if the portion has to be paid to the worker/laborer in the form of a subsidy, then as wages it is considered the difference between the purchase price and the price that has to be paid by the worker/laborer.

(2) In the case where the worker’s/laborer’s remuneration is paid based on daily calculations, then the monthly remuneration is the same as 30 times the daily remuneration.

(3) In the case where the worker’s/laborer’s is paid based on the calculation of a single result, discount/contract or commission, then the remuneration per day is the same as the average remuneration per day over the last 12 (twelve) months, with the stipulation that it can’t be less than the provincial or regency/city minimum wages.

(4) In the case where the work depends on weather conditions and the wages are based on contract wages, then the calculation of monthly wages is figured from the average wages of the last 12 (twelve) months.

Article 158Edit

(1) An entrepreneur can terminate the employment of a worker/laborer with the reason that the worker/laborer has done something wrong as follows:

a. Committed deception, theft, or embezzlement of objects and/or enterprise money;
b. Given false information or that was falsified to the point that it harmed the enterprise;
c. intoxicated, drinking alcohol that intoxifies, using and/or distributing narcotics, psychotropics, and or other drugs in the workplace;
d. doing immoral acts or gambling in the workplace;
e. attacking, torturing, threatening, or intimidating work associates or an entrepreneur in the workplace;
f. persuading work associates or an entrepreneur to do something that is in conflict with the official regulations;
g. negligently or deliberately damaging/destroying or allowing objects in the possession of the enterprise to be in a dangerous condition that result in financial loss for the enterprise;
h. negligently or deliberately allowing work associates or the entrepreneur to be in a dangerous situation in the workplace;
i. exposing or leaking enterprise secrets that should have been kept secret except if it’s in the nation’s interests;
j. Performing other actions in the workplace that are punishable by imprisonment for 5 (five) years or more.

(2) Serious infractions, in the same manner as is meant in clause (1), must be supported with proof as follows:

a. The worker/laborer was caught in the act;
b. There is a confession from the involved worker/laborer; or
c. Other evidence like an incident report that was made by the relevant party in authority and supported by at least 2 (two) witnesses.

(3) A worker/laborer that has been terminated based on the reason(s) , in the same manner as is meant in clause (1), can receive right replacement pay, in the same manner as is meant in Article 156, clause (4).

(4) For the worker/laborer, in the same manner as is meant in clause (1), whose tasks and function don’t represent the interests of the entrepreneur directly, other than right replacement pay, in the same manner as is meant in Article 156, clause (4), shall be given separation money the size and performance of which is arranged in the employment agreement, enterprise regulations or joint venture agreement.

Article 159Edit

If a worker/laborer doesn’t receive an employment termination, in the same manner as is meant in Article 158, clause (1), the worker/laborer in question can submit a suit to an industrial relations conflict resolution institute.

Article 160Edit

(1) In the case where worker/laborer is held by the authority that has the obligation because he/she is suspected of doing illegal actions, not because of a complaint from the entrepreneur, then the entrepreneur isn’t required to pay wages but must give aid to the worker’s/laborer’s family that becomes the bail with stipulations as follows:

a. For 1 (one) person’s bail: 25% (twenty-five percent) of wages;
b. For 2 (two) people’s bail: 35% (thirty-five percent) of wages;
c. For 3 (three) people’s bail: 45% (forty-five percent) of wages;
d. For 4 (four) or more people’s bail: 50% (fifty percent) of wages.

(2) Aid, in the same manner as is meant in clause (1), is given for at most 6 (six) takwin months counted from the first day the worker/laborer was arrested by the party that has the obligation.

(3) An entrepreneur can terminate the employment of a worker/laborer that, after 6 (six) months of not doing his/her work, in the same manner that it should have been done because he/she was in the process of a criminal lawsuit, in the same manner as is meant in clause (1).

(4) In the case where the court concludes the criminal lawsuit before 6 (six) months, in the same manner as is meant in clause (3), ends and the worker/laborer is declared not guilty, then the entrepreneur is required to reemploy the worker/laborer.

(5) In the case where the court concludes the criminal lawsuit before 6 (six) months and the worker/laborer is declared guilty, then the entrepreneur can terminate the employment of the worker/laborer in question.

(6) Employment termination, in the same manner as is meant in clauses (3) and (5), is done without the decision of an industrial relations conflict resolution institute.

(7) The entrepreneur is required to pay the worker/laborer whose employment was terminated, in the same manner as is meant in clauses (3) and (5), employment appreciation pay 1 (one) time the stipulations in Article 156, clause (3) and right replacement pay according to the stipulations in Article 156, clause (4).

Article 161Edit

(1) In the case where the worker/laborer performs a violation of the stipulations in the employment agreement, enterprise regulations or joint venture agreement, the entrepreneur can terminate his/her employment, after giving the worker/laborer in question his/her first, second and third warning letters consecutively.

(2) The warning letters, in the same manner as is meant in clause (1), are each valid for at most 6 (six) months, except if otherwise established in the employment agreement, enterprise regulations or joint venture agreement.

(3) A worker/laborer that experiences an employment termination with reasons, in the same manner as is meant in clause (1), receives severance pay as much as 1 (one) time the stipulations in Article 156, clause (2), employment appreciation pay as much as 1 (one) time the stipulations in Article 156, clause (3), and right replacement pay according to the stipulations in Article 156, clause (4).

Article 162Edit

(1) A worker/laborer that resigns of his/her own free will, receives right replacement money according to the stipulations in Article 156, clause (4).

(2) For the worker/laborer that resigns of his/her own free will, who tasks and function weren’t to represent the interests of the entrepreneur directly, other than receiving right replacement money according to the stipulations in Article 156, clause (4), he/she is given separation money the size and carrying out of which are arranged in the employment agreement, enterprise regulations or joint venture agreement.

(3) A worker/laborer that resigns, in the same manner as is meant in clause (1), must fulfill these conditions:

a. Submits a request to resign in writing no less than 30 (thirty) days before the date of the start of his/her resignation;
b. Isn’t involved in an official obligation; and
c. Still performs his/her obligations until the date of the start of his/her resignation.

(4) Employment termination with the reason of the resignation of his/her own free will is done without a decision from an industrial relations conflict resolution institute.

Article 163Edit

(1) An entrepreneur can terminate the employment of a worker/laborer in matters of a change of status, merger, liquidation, or change of ownership of the enterprise and the worker/laborer isn’t willing to continue the working relationship, then the worker/laborer has the right to severance pay as much as 1 (one) time the stipulations in Article 156, clause (2), employment appreciation pay 1 (one) time the stipulations in Article 156, clause (3), and right replacement pay according to the stipulations in Article 156, clause (4).

(2) An entrepreneur can terminate the employment of a worker/laborer because of a change of status, merger, or a liquidation of the enterprise, and the entrepreneur isn’t willing to accept the worker/laborer in his/her enterprise, then the worker/laborer has the right to severance pay as much as 2 (two) times the stipulations in Article 156, clause (2), employment appreciation pay 1 (one) time the stipulations in Article 156, clause (3), and right replacement pay according to the stipulations in Article 156, clause (4).

Article 164Edit

(1) An entrepreneur can terminate the employment of a worker/laborer because of an enterprise closure that is caused by the enterprise experiencing losses continuously over 2 (two) years, or an act of God (force majeur), with the stipulations that the worker/laborer has the right to severance pay as much as 1 (one) time the stipulations in Article 156, clause (2), employment appreciation pay 1 (one) time the stipulations in Article 156, clause (3), and right replacement pay according to the stipulations in Article 156, clause (4).

(2) Enterprise losses, in the same manner as is meant in clause (1), must be proven with financial report for the last 2 (two) years that have been audited by a public accountant.

(3) An entrepreneur can terminate the employment of a worker/laborer because of an enterprise closure that is not caused by the enterprise experiencing losses continuously over 2 (two) years, or not an act of God (force majeur), but the enterprise is downsizing, with the stipulations that the worker/laborer has the right to severance pay as much as 2 (two) times the stipulations in Article 156, clause (2), employment appreciation pay 1 (one) time the stipulations in Article 156, clause (3), and right replacement pay according to the stipulations in Article 156, clause (4).

Article 165Edit

An entrepreneur can terminate the employment of a worker/laborer because the enterprise is bankrupt, with the stipulations that the worker/laborer has the right to severance pay as much as 1 (one) time the stipulations in Article 156, clause (2), employment appreciation pay 1 (one) time the stipulations in Article 156, clause (3), and right replacement pay according to the stipulations in Article 156, clause (4).

Article 166Edit

In the case where the working relationship ends because the worker/laborer dies, to the inheritor shall be given an amount of money the size of the calculations of which are the as the calculation of 2 (two) times the severance pay according to the stipulations in Article 156, clause (2), 1 (one) time the employment appreciation pay according to the stipulations in Article 156, clause (3), and right replacement pay according to the stipulations in Article 156, clause (4).

Article 167Edit

(1) An entrepreneur can terminate the employment of a worker/laborer because he/she has reached the age of retirement and if the entrepreneur has involved the worker/laborer in a pension program the contribution of which was fully paid by the entrepreneur, then the worker/laborer doesn’t have the right to get severance pay according to the stipulations in Article 156, clause (2), employment appreciation pay according to the stipulations in Article 156, clause (3), but still has the right to replacement pay according to the stipulations in Article 156, clause (4).

(2) In the matter of the size of the surety or the use of the pension that will be received at once in the pension program, in the same manner as is meant in clause (1), if it turns out that it’s smaller than 2 (two) times the severance pay of the stipulations in Article 156, clause (2) and employment appreciation pay 1 (one) time the stipulations in Article 156, clause (3), and right replacement pay according to Article 156, clause (4), then the difference shall be paid by the entrepreneur.

(3) In the case where the entrepreneur has enrolled the worker/laborer in a pension program where the contribution/premium is paid by the entrepreneur and the worker/laborer, then what’s calculated with the severance pay is the pension money where the premium/contribution was paid by the entrepreneur.

(4) The stipulations, in the same manner as is meant in clauses (1), (2) and (3), can be arranged differently in the employment agreement, enterprise regulations or the joint venture agreement.

(5) In the case where the entrepreneur hasn’t enrolled the worker/laborer who has been terminated because of reaching the age of retirement in a pension program then the entrepreneur is required to give to the worker/laborer severance pay as much as 2 (two) times the stipulations in Article 156, clause (2) and employment appreciation pay 1 (one) time the stipulations in Article 156, clause (3), and right replacement pay according to Article 156, clause (4).

(6) The rights to use the pension money, in the same manner as is meant in clauses (1), (2), (3), and (4), doesn’t invalidate the right of the worker/laborer to retirement insurance that has the quality of being required according to the relevant official ordinances.

Article 168Edit

(1) A worker/laborer who is absent 5 (five) or more consecutive work days without a doctor’s written explanation that includes legal proof and has been summoned properly by the entrepreneur 2 (two) times in writing can terminate his/her employment because he/she is qualified to resign.

(2) A written explanation with legal proof, in the same manner as is meant in clause (1), must be submitted no later than the first day the worker/laborer returns to work.

(3) For employment termination, in the same manner as is meant in clause (1), of the worker/laborer in question is given the right to receive right replacement pay according to Article 156, clause (4), and is given separation pay the size and execution of which is arranged in the employment agreement, enterprise regulations, or the joint venture agreement.

Article 169Edit

(1) A worker/laborer can submit a request for the termination of his/her employment to an industrial relations conflict resolution institute in the case where the entrepreneur does a deed as follows:

a. Tortures, rudely insults or threatens the worker/laborer;
b. Persuades and/or orders the worker/laborer to do a deed that is in conflict with official ordinances;
c. Doesn’t pay the determined wages on time for 3 (three) months in a row or more;
d. Doesn’t do his/her obligations that have been promised to the worker/laborer;
e. Orders the worker/laborer to perform work outside of what’s been agreed to; or
f. Gives work that endangers the life, safety, health and morality of the worker/laborer whereas the job in question isn’t listed in the employment agreement.

(2) For employment termination with reason(s), in the same manner as is meant in clause (1), the worker/laborer has the right to get severance pay 2 (two) times the stipulations in Article 156, clause (2) and employment appreciation pay 1 (one) time the stipulations in Article 156, clause (3), and right replacement pay according to Article 156, clause (4).

(3) In the case where the entrepreneur is declared innocent of the deeds, in the same manner as is meant in clause (1), by an industrial relations conflict resolution institute, then the entrepreneur can terminate the employment without the decision of an industrial relations conflict resolution institute and the worker/laborer in question doesn’t have the right to get severance pay according to Article 156, clause (2), and right replacement pay according to Article 156, clause (4).

Article 170Edit

An employment termination which is done that doesn’t fulfill the stipulations of Articles 151, clause (3) and 168, except Articles 158, clause (1), 160, clause 3, 162, and 169, are cancelled for the sake of the law and the entrepreneur is required to employ the worker/laborer in question as well as pay all of his/her wages and right that should have been received.

Article 171Edit

A worker/laborer that experiences an employment termination without the decision of an industrial relations conflict resolution institute that is authorized, in the same manner as is meant in Article 158, clause (1), 160, clause (3), and 162, and said worker/laborer can’t accept said employment termination, then the worker/laborer can submit a claim to an industrial relations conflict resolution institute within at most 1 (one) year from the date the employment termination was done.

Article 172Edit

A worker/laborer that experiences a long-term illness, a disability that resulted from a work accident and can’t do his/her work after the passage of 12 (twelve) months can submit an employment termination and be given severance pay 2 (two) times the stipulations in Article 156, clause (2) and employment appreciation pay 2 (two) time the stipulations in Article 156, clause (3), and right replacement pay 1 (one) time the stipulations in Article 156, clause (4).

CHAPTER XIII: CONSTRUCTIONEdit

Article 173Edit

(1) The government provides guidance about the elements and activities that are connected with manpower.

(2) Guidance, in the same manner as is meant in clause (1), can enlist the aid of entrepreneurial organizations, workers’/laborers’ union, and relevant professional organizations.

(3) Guidance, in the same manner as is meant in clauses (1) and (2), is performed harmoniously and coordinatedly.

Article 174Edit

In the framework of manpower guidance, the government, entrepreneurial organizations, workers’/laborers’ union, and relevant professional organizations can perform international work together in the area of manpower according to the relevant official ordinances.

Article 175Edit

(1) The government can give an award to a person or institute that has been of service in the guidance of manpower.

(2) The award, in the same manner as is meant in clause (1), can be given in the form of a certificate, money and/or in another form.

CHAPTER XIV: SUPERVISIONEdit

Article 176Edit

The supervision of manpower is done by a manpower oversight official who has the competency and independent in order to ensure the implementation of official manpower ordinances.

Article 177Edit

A manpower oversight official, in the same manner as is meant in Article 176, is established by the Minister or an appointed official.

Article 178Edit

(1) Manpower supervision that is performed by a separate work unit in the agency whose scope of tasks and responsibilities are in the area of manpower in the central, provincial and regency/city governments.

(2) The performance of manpower supervision, in the same manner as is meant in clause (1), shall be arranged by Presidential Decree.

Article 179Edit

(1) The manpower supervision work unit, in the same manner as is meant in Article 176, in the provincial and regency/city government is required to convey a report of the performance of manpower supervision to the Minister.

(2) The rules of conveying a report, in the same manner as is meant in clause (1), shall be established by Ministerial Decree.

Article 180Edit

Stipulations about the conditions of appointment, rights and obligations, as well as the authority of an official who is a manpower superintendent, in the same manner as is meant in Article 176, are according to the relevant official ordinances.

Article 181Edit

An official who is a manpower superintendent, in performing his/her tasks, in the same manner as is meant in Article 176, is required to:

a. Keep secret everything that, according to its characteristics, deserves to be kept secret;
b. Not misuse his/her authority.

CHAPTER XV: POLICE INVESTIGATIONEdit

Article 182Edit

(1) Other than an investigative officer of the National Police of the Republic of Indonesia, officials who are manpower superintendents are also given the special authority as official, national, civil investigators according to the relevant official ordinances.

(2) An official, national, civil investigator, in the same manner as is meant in clause (1), has the power to:

a. Do inspections about the truth of a report as well as an official statement about the criminal acts in the area of manpower;
b. Do an inspection of a person that is suspected of doing criminal acts in the area of manpower;
c. Ask for explanations and physical evidence from a person or legal body in connection with a criminal act in the area of manpower;
d. Do an inspection or seizure of objects or physical evidence in the case of a criminal act in the area of manpower;
e. Do an inspection of letters and/or other documents concerning a criminal act in the area of manpower;
f. Ask for expert assistance in the framework of the performance of investigative work of a criminal act in the area of manpower; and
g. Halt an investigation if not enough evidence is found that proves a criminal act in the area of manpower.

(3) The authority of an official, national, civil investigator, in the same manner as is meant in clause (2), is performed according to the relevant official ordinances.

CHAPTER XVI: CRIMINAL STIPULATIONS AND ADMINISTRATIVE SANCTIONSEdit

First Section: Criminal StipulationsEdit

Article 183Edit

(1) Whomever violates the stipulations, in the same manner as is meant in Article 74, is punishable with the criminal sanction of imprisonment for a minimum of 2 (two) years and at most 5 (five) years and/or a fine of at least Rp 200.000.000,00 (two hundred million rupiahs) and at most Rp 500.000.000,00 (five hundred million rupiahs).

(2) The criminal act, in the same manner as is meant in clause (1), constitutes a criminal act that is a felony.

Article 184Edit

(1) Whomever violates the stipulations, in the same manner as is meant in Article 167, clause (5), is punishable with the criminal sanction of imprisonment for a minimum of 1 (one) year and at most 5 (five) years and/or a fine of at least Rp 100.000.000,00 (one hundred million rupiahs) and at most Rp 500.000.000,00 (five hundred million rupiahs).

(2) The criminal act, in the same manner as is meant in clause (1), constitutes a criminal act that is a felony.

Article 185Edit

(1) Whomever violates the stipulations, in the same manner as is meant in Article 42, clauses (1) and (2), Article 68, Article 69, clause (2), Article 80, Article 82, Article 90, clause (1), Article 143, and Article 160, clauses (4) and (7), is punishable with the criminal sanction of imprisonment for a minimum of 1 (one) year and at most 4 (four) years and/or a fine of at least Rp 100.000.000,00 (one hundred million rupiahs) and at most Rp 400.000.000,00 (four hundred million rupiahs).

(2) The criminal act, in the same manner as is meant in clause (1), constitutes a criminal act that is a felony.

Article 186Edit

(1) Whomever violates the stipulations, in the same manner as is meant in Article 35, clauses (2) and (3), Article 93, clause (2), Article 137, and Article 138 clause (1), is punishable with the criminal sanction of imprisonment for a minimum of 1 (one) month and at most 4 (four) years and/or a fine of at least Rp 10.000.000,00 (ten million rupiahs) and at most Rp 400.000.000,00 (four hundred million rupiahs).

(2) The criminal act, in the same manner as is meant in clause (1), constitutes a criminal act that is an misdemeanor.

Article 187Edit

(1) Whomever violates the stipulations, in the same manner as is meant in Article 37, clause (2), Article 44, clause (1), Article 45, clause (1), Article 67, clause (1), Article 71, clause (2), Article 76, Article 78, clause (2), Article 79, clauses (1) and (2), Article 85, clause (3), and Article 144, is punishable with the criminal sanction of imprisonment for a minimum of 1 (one) month and at most 12 (twelve) months and/or a fine of at least Rp 10.000.000,00 (ten million rupiahs) and at most Rp 100.000.000,00 (one hundred million rupiahs).

(2) The criminal act, in the same manner as is meant in clause (1), constitutes a criminal act that is an misdemeanor.

Article 188Edit

(1) Whomever violates the stipulations, in the same manner as is meant in Article 14, clause (2), Article 38, clause (2), Article 63, clause (1), Article 78, clause (1), Article 108, clause (1), Article 111, clause (3), Article 114, and Article 148, is punishable with the criminal sanction of a fine of at least Rp 5.000.000,00 (five million rupiahs) and at most Rp 50.000.000,00 (fifty million rupiahs).

(2) The criminal act, in the same manner as is meant in clause (1), constitutes a criminal act that is an misdemeanor.

Article 189Edit

The criminal sanctions of imprisonment, detention and/or fines don’t remove the entrepreneur’s responsibility to the rights and/or indemnifications of the employee or worker/laborer.

Second Section: Administrative SanctionsEdit

Article 190Edit

(1) A Minister or appointed official is punishable with an administrative sanction for violations of stipulations, in the same manner as is arranged in Article 5, Article 6, Article 15, Article 25, Article 38, clause (2), Article 45, clause (1) Article 47, clause (1), Article 48, Article 87, Article 106, Article 126, clause (3), and Article 160, clauses (1) and (2) of this law as well as the rules of its performance.

(2) The administrative sanctions, in the same manner as is meant in clause (1), take the form of:

a. Reprimand;
b. Written warning;
c. Restriction of enterprise activities;
d. Freezing of enterprise activities;
e. Cancellation of an agreement;
f. Cancellation of registration;
g. Temporary halting of some or all production equipment;
h. Revocation of license.

(3) Stipulations regarding the administrative sanctions, in the same manner as is mean clauses (1) and (2), are arranged in advance by the Minister.

CHAPTER XVII: CHANGE STIPULATIONEdit

Article 191Edit

All the official ordinances that arrange manpower are still valid as long as they aren’t in conflict with and/or haven’t yet been replaced by the new regulations in this law.

CHAPTER XVIII: CLOSING STIPULATIONSEdit

Article 192Edit

When this law goes into effect, then:
1. Ordonansi tentang Pengerahan Orang Indonesia Untuk Melakukan Pekerjaan Di Luar Indonesia (Staatsblad Tahun 1887 Nomor 8);

2. Ordonansi tanggal 17 Desember 1925 Peraturan tentang Pembatasan Kerja Anak Dan Kerja Malam Bagi Wanita (Staatsblad Tahun 1925 Nomor 647);

3. Ordonansi Tahun 1926 Peraturan mengenai Kerja Anak anak Dan Orang Muda Di Atas Kapal (Staatsblad Tahun 1926 Nomor 87);

4. Ordonansi tanggal 4 Mei 1936 tentang Ordonansi untuk Mengatur Kegiatan kegiatan Mencari Calon Pekerja (Staatsblad Tahun 1936 Nomor 208);

5. Ordonansi tentang Pemulangan Buruh Yang Diterima Atau Dikerahkan Dari Luar Indonesia (Staatsblad Tahun 1939 Nomor 545);

6. Ordonansi Nomor 9 Tahun 1949 tentang Pembatasan Kerja Anak anak (Staatsblad Tahun 1949 Nomor 8);

7. Undang-undang Nomor 1 Tahun 1951 tentang Pernyataan Berlakunya Undang-undang Kerja Tahun 1948 Nomor 12 Dari Republik Indonesia Untuk Seluruh Indonesia (Lembaran Negara Tahun 1951 Nomor 2);

8. Undang-undang Nomor 21 Tahun 1954 tentang Perjanjian Perburuhan Antara Serikat Buruh Dan Majikan (Lembaran Negara Tahun 1954 Nomor 69, Tambahan Lembaran Negara Nomor 598a);

9. Undang-undang Nomor 3 Tahun 1958 tentang Penempatan Tenaga Asing (Lembaran Negara Tahun 1958 Nomor 8 );

10. Undang-undang Nomor 8 Tahun 1961 tentang Wajib Kerja Sarjana (Lembaran Negara Tahun 1961 Nomor 207, Tambahan Lembaran Negara Nomor 2270);

11. Undang-undang Nomor 7 Pnps Tahun 1963 tentang Pencegahan Pemogokan dan/atau Penutupan (Lock Out) Di Perusahaan, Jawatan, dan Badan Yang Vital (Lembaran Negara Tahun 1963 Nomor 67);

12. Undang-undang Nomor 14 Tahun 1969 tentang Ketentuan ketentuan Pokok Mengenai Tenaga Kerja (Lembaran Negara Tahun 1969 Nomor 55, Tambahan Lembaran Negara Nomor 2912);

13. Undang-undang Nomor 25 Tahun 1997 tentang Ketenagakerjaan (Lembaran Negara Tahun 1997 Nomor 73, Tambahan Lembaran Negara Nomor 3702);

14. Undang-undang Nomor 11 Tahun 1998 tentang Perubahan Berlakunya Undang-undang Nomor 25 Tahun 1997 tentang Ketenagakerjaan (Lembaran Negara Tahun 1998 Nomor 184, Tambahan Lembaran Negara Nomor 3791);

15. Undang-undang Nomor 28 Tahun 2000 tentang Penetapan Peraturan Pemerintah Pengganti Undang-undang Nomor 3 Tahun 2000 tentang Perubahan Atas Undang-undang Nomor 11 Tahun 1998 tentang Perubahan Berlakunya Undang-undang Nomor 25 Tahun 1997 tentang Ketenagakerjaan Menjadi Undang-undang (Lembaran Negara Tahun 2000 Nomor 240, Tambahan Lembaran Negara Nomor 4042),

Are declared no longer valid.

Article 193Edit

This law comes into effect on the date it was created. So that each person knows about it, it is commanded that the enactment of this law with the placement of it in the National Archives of the Republic of Indonesia.

Legalized in Jakarta on the 25th of March, 2003.

THE PRESIDENT OF THE REPUBLIC OF INDONESIA Signature: MEGAWATI SOEKARNOPUTRI

Passed into law in Jakarta on the 25th of March, 2003

THE NATIONAL SECRETARY OF THE REPUBLIC OF INDONESIA

Signature: BAMBANG KESOWO

NATIONAL ARCHIVES OF THE REPUBLIC OF INDONESIA, NO 39, YEAR 2003


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