Company Regulations is internal rules established by the employer to govern the rights and obligations of both parties. They provide structure on issues such as working conditions, disciplinary actions, leave policies, and other employment terms. The regulations must align with the legal framework and be reviewed every two years. This regulation must be registered and approved by the Indonesian Ministry of Manpower.
There are two types of employment contracts: Fixed-term contracts (Perjanjian Kerja Waktu Tertentu or PKWT) and Indefinite-term contracts (Perjanjian Kerja Waktu Tidak Tertentu or PKWTT). Fixed-term contracts are used for specific time periods or projects, while indefinite-term contracts are open-ended.
Employment contracts must be in writing and should clearly outline both employer’s and employee’s rights and obligations, including job responsibilities, working hours, salary, benefits, and the duration of employment. The contract should comply with Indonesian Manpower Law No. 13 of 2003, as amended by the Job Creation Law.
