We are here to make navigating labor & employment dispute in Indonesia straightforward and stress-free. With our deep understanding of Indonesian labor & employment laws & regulations, and extensive experience labor & employment litigation, we have strong commitment to protecting your business and ensuring you stay compliant with all relevant laws. We represent the companies like yours in resolving labor & employment disputes through the entire spectrum of mediation, from Bipartite to Tripartite negotiations, and represent in the Indonesian Industrial Relations court to gain the most favorable outcome.
Indonesian Legal Procedures for Labor & Employment disputes litigation at a glance:
The Industrial Relations Court Proceedings involves several stages:
Law No. 13 of 2003 on Manpower, as amended by Government Regulation in Lieu of Law No. 2 of 2022 on Job Creation, Law No. 2 of 2004 on Industrial relations Dispute Settlement, Government Regulation No. 35 of 2021, etc.,
It will be varied, including company’s merger & acquisition or company’s liquidation, company is under bankrupt, company’s financial condition, completion of employment contract, violation of employment contract, gross misconduct, employee resigns voluntarily, etc.,
At least 14 business days, or 7 business days is termination is during probationary period. For employee resignation, written notice must be submitted by the employee at least 30 days before the last day.
For a Permanent employee, the company is obliged to pay a severance package, which comprises: severance pay, service appreciation pay, and compensation of entitlements.
For a Fixed-Term employee, the company must compensate the employee in an amount equivalent to the remaining salary of the employee until expiry of the employment contract.
