CDD regulados: Si

Razones de utilización legítima de CDD: razones materiales y objetivas

Remarks

Art. 59 (1) and (2) MA:
"(1) A work agreement for a specified time can only be made for a certain job, which, because of the type and nature of the job, will finish in a specified time, that is:
a. Work to be performed and completed at once or work which is temporary by nature;
b. Work whose completion is estimated time which is not too long and no longer than 3 (three) years;
c. Seasonal work; or
d. Work that is related to a new product, a new activity or an additional product that is still in the experimental stage or try-out phase.
(2) A work agreement for a specified time cannot be made for jobs that are permanent by nature."

Número máximo de CDD consecutivos: 2

Remarks

Art. 59 (4) MA: one extension possible.

Duración máxima acumulativa de CDD consecutivos: 36meses

Remarks

Art. 52 (4) MA: A fixed term contract can only be concluded for a period of no longer than two years and be
extended one time that is not longer than one year.

Duración maxima del periodo de prueba (en meses): 3 meses

Remarks

Art. 60 MA.
However, fixed-term contracts cannot stipulate a probation period (art. 58 (1) MA).

Obligación de motivar el despido: Si

Remarks

No express obligation to state the reasons for dismissal. However, according to art. 151 (2) MA: the employer must negotiate directly with the worker (who is not unionized) or, the trade union he belongs to about his intention to carry out the dismissal.

Motivos autorizados (despido justificado): conducta del trabajador, razones económicas, capacidad del trabajador

Remarks

See:
* Art. 168 MA: absence from work for more than 5 days without justified reason,
* Art. 161 MA: violation of the provisions specified in the work agreement, the company regulations or the collective agreement,
* Art. 160 (3) MA: inability to work for reasons related to legal criminal proceeding,
* Art. 163, 164 and 165 MA: economic reasons (change of status of the enterprise, closing down due to continuous losses, bankruptcy).
NOTE: Art. 158 MA (grave wrongdoings) was declared null and void by Constitutional Court Decision No.012/PUU-I/2003.

Motivos prohibidos: estado civil, embarazo, licencia de maternidad, enfermedad o accidente profesional temporal, raza, color, sexo, religión, opinion política, afiliación sindical y actividades sindicales, discapacidad, otros, denuncia/ alerta, disfrute legal de licencias, cumplir obligaciones cívicas, origen étnico

Remarks

Art. 153 MA
On whistleblowing see also: Law No. 13 of 2006 concerning protection of witness and victim

Trabajadores que gozan de una protección particular (fuero): mujeres embarazadas o con licencia de maternidad, trabajadores con una invalidez confirmada

Remarks

See: art. 153 c), g), j) and 172 MA.

Forma de la notificación del despido al trabajador: sin forma particular exigida

Remarks

Before terminating the employment relationship, an employer is required to negotiate with the workers' organization concerned, or with the non-unionised worker directly, with a view to reaching agreement.
Art. 151 (3) and 152 MA require that when negotiation fails between parties, decision on the termination will be taken by the institution for the settlement of industrial relations disputes. Since the entry into force of the Act No 2/2004 [IRDSA], the old institutions for the settlement of industrial relations disputes were dismantled and replaced by new mechanisms. As a result, the administration now only acts as a mediator if the parties fail to reach an agreement on the termination. The Industrial Relations Court will hear the dispute if no agreement was found during the mediation phase

Plazo de preaviso:

Remarks

Indonesian law does not set out notice periods. If an employer decides to terminate an employee, he/she shall obtain the approval from the institution for the settlement of industrial relations disputes. In practice, this pre-termination statutory procedure involves a delay between the employer notifying the employee of the planned termination and the termination date.

duración de servicio ≥ 6 meses:

  • Todos: 0 meses.

duración de servicio ≥ 9 meses:

  • Todos: 0 meses.

duración de servicio ≥ 1 año:

  • Todos: 0 meses.

duración de servicio ≥ 2 años:

  • Todos: 0 meses.

duración de servicio ≥ 4 años:

  • Todos: 0 meses.

duración de servicio ≥ 5 años:

  • Todos: 0 meses.

duración de servicio ≥ 10 años:

  • Todos: 0 meses.

duración de servicio ≥ 20 años:

  • Todos: 0 meses.

Indemnización sustitutiva de preaviso: No

Notificación a la administración: No

Remarks

Art. 151 (3) and 152 MA require that when negotiation fails between parties, decision on the termination will be taken by the institution for the settlement of industrial relations disputes. Since the entry into force of the Act No 2/2004 [IRDSA], the old institutions for the settlement of industrial relations disputes were dismantled and replaced by new mechanisms. As a result, the administration now only acts as a mediator if the parties fail to reach an agreement on the termination. The Industrial Relations Court will hear the dispute if no agreement was found during the mediation phase.

Notificación a los representantes de los trabajadores: Si

Remarks

Art. 151(2) requires that termination be negotiated.
Negotiation will involve the worker's representative only if the employee belongs to a trade union (art. 151 (2) MA). If not, the negotiation will take place between the worker and employer.

Aprobación de la administración publica o de organismos judiciales: Si

Remarks

Art. 151 (3) and 152 MA require that when negotiation fails between parties, decision on the termination will be taken by the institution for the settlement of industrial relations disputes. Since the entry into force of the Act No 2/2004 [IRDSA], the old institutions for the settlement of industrial relations disputes were dismantled and replaced by new mechanisms. As a result, the administration now only acts as a mediator if the parties fail to reach an agreement on the termination. The Industrial Relations Court will hear the dispute if no agreement was found during the mediation phase.

Acuerdo de los representantes de los trabajadores: No

Remarks

Art. 151(2) requires that termination be negotiated.
Negotiation will involve the worker's representative only if the employee belongs to a trade union (art. 151 (2) MA). If not, the negotiation will take place between the worker and employer.

Notas / Comentarios

Notas

The Indonesian termination system is not based on notice but on prior bipartite negotiations and if they fail, on mediation by the administration and eventually judicial settlement.

Definición de despido colectivo (número de empleados afectados): No definition of collective dismissals.
No specific procedural requirements.

Remarks

See: Art 164 MA allows for termination "because the enterprise has to be closed down due to continual losses for 2 (two) years consecutively or force majeure", (art. 164 (1) MA) and "when the closing down of the enterprise is caused neither by continual losses for 2 (two) years consecutively nor force majeure but because of rationalization" (art. 164 (3) MA).

Consultación previa con los sindicatos (representantes de los trabajadores): Si

Remarks

Art. 151 (2) MA: general rule not specific to economic dismissals.
Art. 151(2) MA requires that termination be negotiated.
Negotiation will involve the worker's representative only if the employee belongs to a trade union. If not, the negotiation will take place between the worker and employer.

Notificación a la administración: No

Notificación a los representantes de los trabajadores: Si

Remarks

Bi-partite negotiations between the employer and the employee are compulsory in the event the employee belongs to a trade union (art. 150 (2) MA). For non-unionized workers, the bipartite negotiation will take place between the worker and employer.

Aprobación de la administración publica o de organismos judiciales: No

Remarks

Art. 151 (3) and 152 MA require that when negotiation fails between parties, decision on the termination will be taken by the institution for the settlement of industrial relations disputes. Since the entry into force of the Act No 2/2004 [IRDSA], the old institutions for the settlement of industrial relations disputes were dismantled and replaced by new mechanisms. As a result, the administration now only acts as a mediator if the parties fail to reach an agreement on the termination. The Industrial Relations Court now sentences in last resort.

Acuerdo de los representantes de los trabajadores: No

Reglas de prioridad para los despidos colectivos (consideraciones sociales, edad, años de servicio): No

Obligación del empleador de considerar solucionés alternativas al despido (transferencia, formación...): Si

Remarks

Art. 150 (1) MA stipulates that: "the employer, the worker and/or the trade union, and the government must make all efforts to prevent termination of employment".
According to the explanatory notes attached to the Manpower Act 2003, under the above mentioned article "the phrase make all effort under this subsection refers to positive activities or actions which may eventually prevent termination of employment from happening , including among others, arrangement of working time, saving measures, restructuring or reorganization of working methods, and efforts to develop the worker/labourer".

Reglas de prioridad para la re-contratación: No

Notas

There are no specific regulations or additional requirements for collective dismissals. Therefore, notification requirements applicable to individual dismissals remain applicable.

Indemnización por despido:

Remarks

Art. 156 - Manpower Act
(1) Should termination of employment take place, the entrepreneur is obliged to pay the dismissed worker severance pay and or a sum of money as a reward for service rendered during his or her term of employment and compensation pay for rights or entitlements.

(2) The calculation of severance pay as mentioned under subsection (1) shall at least be as follows:
a. 1 (one)-month wages for years of employment less than 1 (one) year;
b. 2 (two)-month wages for years of employment up to 1 (one) year or more but less than 2 (two) years;
c. 3 (three)-month wages for years of employment up to 2 (two) years or more but less than 3 (three) years;
d. 4 (four)-month wages for years of employment up to 3 (three) years or more but less than 4 (four) years;
e. 5 (five)-month wages for years of employment up to 4 (four) years or more but less than 5 (five) years;
f. 6 (six)-month wages for years of employment up to 5 (five) years or more but less than 6 (six) years;
g. 7 (seven)-month wages for years of employment up to 6 (six) years or more but less than 7 (seven) years;
h. 8 (eight)-month wages for years of employment up to 7 (seven) years or more but less than 8 (eight) years;
i. 9 (nine)-month wages for years of employment up to 8 (eight) years or more.
(...)

•In the event the termination on the grounds of absence for five consecutive workdays without explanation, the worker is not entitled to any severance pay or long service pay, but he will be entitled for compensation pay and separation money in accordance with the work agreement, company regulation or collective elabour agreement(Art. 168 (3) MA)

•However, if a worker is terminated on the grounds of violation of the terms of employment, he will be nonetheless entitled to severance pay, long-service pay and compensation pay.

•Under 161 (1) MA, A worker/ labourer may make an official request to the institute for the settlement of industrial relation disputes to terminate his/her employment relationship with his/ her entrepreneur if:
a. The entrepreneur has battered, rudely humiliated or intimidated the worker/ labourer;
b. The entrepreneur has persuaded and/or ordered the worker/ labourer to commit acts that run against statutory laws and regulations; or
c. The entrepreneur has not paid wages at a prescribed time for three months consecutively or more;
d. The entrepreneur has not performed obligations promised to workers/ labourers;
e. The entrepreneur orders the worker/ labourer to perform work outside of that which has been agreed upon by the worker/ labourer to undertake;
f. The entrepreneur has ordered the worker/ labourer to carry out work that puts the worker/ labourer’s life, safety, health and or morality in jeopardy, of which the worker/ labourer is not made aware or informed at the time the worker/ labourer’s employment agreement was made.
(2) In the event of termination of employment because of reasons as referred to under subsection (1), the affected worker/ labourer is entitled to receive severance pay amounting to twice the amount of severance pay stipulated under subsection (2) of Article 156, reward pay amounting to 1 (one) time the amount of reward pay for period of employment worked stipulated under subsection (3) of Article 156 and compensation pay for entitlements left unused according to what is stipulated under subsection (4) of Article 156.

duración de servicio ≥ 6 meses: 1 meses

duración de servicio ≥ 9 meses: 1 meses

duración de servicio ≥ 1 año: 2 meses

duración de servicio ≥ 4 años: 5 meses

duración de servicio ≥ 5 años: 6 meses

duración de servicio ≥ 10 años: 9 meses

duración de servicio ≥ 20 años: 9 meses

Indemnización por despido por razones económicas:

Remarks

Articles 163 - 164 and 165 MA

Article 163 MA
(1) The entrepreneur may terminate the employment of his or her workers/ labourers in the event of change in [the] status [of the enterprise], merger, fusion, or change in the ownership of the enterprise and the workers/ labourers are not willing to continue their employment. If this happens, the worker/ labourer shall be entitled to severance pay 1 (one) time the amount of severance pay stipulated under subsection (2) of Article 156, reward pay for period of employment 1 (one) time the amount stipulated under subsection (3) of Article 156, and compensation pay for entitlements that have not been used according to what is stipulated under subsection (4) of Article 156.
(2) The entrepreneur may terminate the employment of his or her workers/ labourers in the event of change in [the] status [of the enterprise], merger, fusion, or change in the ownership of the enterprise and the entrepreneur is not willing to accept the workers/ labourers to work in the [new] enterprise [resulting from the change of status, merger, fusion, or ownership change]. If this happens, the worker/ labourer shall be entitled to severance pay twice the amount of severance pay stipulated under subsection (2) of Article 156, reward pay for period of employment 1 (one) time the amount stipulated under subsection (3) of Article 156, and compensation pay for entitlements that have not been used
according to what is stipulated under subsection (4) of Article 156.

Article 164 MA
(1) The entrepreneur may terminate the employment of his or her workers/ labourers because the enterprise has to be closed down due to continual losses it suffers for two years consecutively or force majeure. If this happens, the workers/ labourers shall be entitled to severance pay amounting to 1 (one) time the amount of severance pay stipulated under subsection (2) of Article 156, reward pay for period of employment amounting to 1 (one) time the amount stipulated under subsection (3) of Article 156 and compensation pay for entitlements that have not been used according to what is stipulated under subsection (4) of Article 156.
(2) The continual losses as referred under subsection (1) must be provable in the enterprise’s financial reports over the last 2 (two) years that have been audited by public accountants.
(3) The entrepreneur may terminate the employment of his or her workers/ labourers because the enterprise has to be closed down and the closing down of the enterprise is caused neither by continual losses for 2 (two) years consecutively nor force majeure but because of rationalization [literal: efficiency]. If this happens, the workers/ labourers shall be entitled to severance pay twice
the amount of severance pay stipulated under subsection (2) of Article 156, reward for period of employment pay amounting to 1 (one) time the amount stipulated under subsection (3) of Article
156 and compensation pay for entitlements that have not been used according to what is stipulated under subsection (4) of Article 156.

Article 165 MA
The entrepreneur may terminate the employment of the enterprise’s workers/ labourers because the enterprise goes bankrupt. If this happens, the workers/ labourers shall be entitled to severance pay amounting to 1 (one) time the amount of severance pay stipulated under subsection (2) of Article 156, reward pay for period of employment amounting to 1 (one) time the amount stipulated under subsection (3) of Article 156 and compensation pay for entitlements that have not been used according to what is stipulated under subsection (4) of Article 156.

duración de servicio ≥ 6 meses: 2 meses

duración de servicio ≥ 9 meses: 2 meses

duración de servicio ≥ 1 año: 4 meses

duración de servicio ≥ 2 años: 6 meses

duración de servicio ≥ 4 años: 10 meses

duración de servicio ≥ 5 años: 12 meses

duración de servicio ≥ 10 años: 18 meses

duración de servicio ≥ 20 años: 18 meses

Notas

Under art. 156 of the Manpower Law, termination of the employment relationship gives rise to termination payments.

Severance pay amounts to one month's wages for each year of service, up to a maximum of nine months pay.

In addition, there is a payment for reward of service (long-period of service) that consists in adding one month's pay for every three years of employment, starting with two months' pay for 3 years, up to a maximum of 10 months' wages for 24 years of service.

Compensación por despido injustificado - libre determinación de la Corte: No

Remarks

No compensation foreseen in the MA.
A ruling of unfair dismissal entails reinstatement. (see art. 170 MA, also art. 153 (2) on dismissal based on prohibited grounds)

Posibilidad de readmisión: Si

Remarks

Art. 153 (2) MA: any termination based on prohibited grounds shall be declared null and void. The employer must then reemploy the affected worker.

Conciliación previa obligatoria: Si

Remarks

Pursuant to Act No. 2 of 2004 concerning Industrial relations settlements, the parties must first attempt to settle their dispute trough bipartite negotiations, and if negotiations fail, through conciliation or mediation before the dispute can go to the Industrial Relations Court.

Corte o Tribunal competente: tribunal del trabajo

Remarks

Pursuant to Act No. 2 of 2004 concerning Industrial relations settlements, the Industrial Relation Court is competent if the parties did not reach any agreement through negotiations, conciliation or mediation.

Arbitraje: Si

Remarks

Pursuant to Act No. 2 of 2004 concerning Industrial relations settlements, the Industrial Relation Court is competent if the parties did not reach any agreement through negotiations, conciliation or mediation.

Duración del procedimiento: 50du00eda(s) (statutory)

Remarks

The Industrial Relations Court (IRC) must issue a verdict within 50 days as of the date of the first court session (art. 103 IRDSA).
An appeal can be lodged before the Supreme Court IRC decision within 7 days, which should issue its decision within 20 days (art.115 IRSDA).

Note that the prior bipartite negotiations and conciliation/mediation shall be carried out within 30 days each.