▷ Domestic Workers Protection Law:
The Domestic Workers Protection Law (Undang-Undang tentang Pelindungan Pekerja Rumah Tangga) was passed in April 2026. However, explicit legal standards regarding dismissal, severance pay, and dispute resolution for domestic workers remain largely undefined while the government works through a 12-month implementation window. Domestic workers therefore continue, for the time being, to fall largely outside the full application of the termination and severance provisions of the Manpower Act.

▶ Manpower Act (as amended by Law No. 6 of 2023)
→ Section 150 MA provides that the provisions on termination of employment under this Act cover termination of employment that occurs in a business undertaking which is a legal entity or not, owned by an individual, a partnership or a legal entity, whether private or State-owned, as well as social undertakings and other undertakings which have administrators and employ people by paying them wages or other forms of remuneration.
▶ Government Regulation No. 35 of 2021 (GR 35/2021)
→ Section 1(4) of GR 35/2021 indicates that: A company shall be:
a. Any form of business, either a legal entity or not, belonging to an individual, a partnership, or a legal entity, either privately owned or state-owned, which employs Workers/Laborers by paying Wages or other forms of remuneration;
b. Social enterprises and other businesses that have management and employ other people by paying Wages or other forms of remuneration.

▶ Manpower Act (as amended by Law No. 6 of 2023)
→ Section 150 MA defines the scope of the termination provisions.
▷ Civil servants (pegawai negeri) are governed by specific civil service regulations and are therefore excluded from the termination provisions of the Manpower Act.
▷ Domestic workers (pekerja rumah tangga / pembantu rumah tangga) are generally reported to fall outside the full application of the termination provisions of the Manpower Act (see ILO regulation of domestic workers in Indonesia -https://www.ilo.org/media/322371/download)
▶ Government Regulation No. 35 of 2021 (GR 35/2021)
→ Section 1(2) GR 35/2021 indicates that: Worker/Labourer shall be any person who works by receiving wages or other forms of remuneration.
→ Section 1(3) of GR 35/2021 indicates that: An employer shall be:
a. Individuals, associations, or legal entities operating their own company;
b. Individuals, associations, or legal entities independently operating companies that do not belong to them;
c. Individuals, associations, or legal entities who are in Indonesia, representing companies as referred to in letters a and b which are domiciled outside the territory of Indonesia.

▷ History note: Law No. 11 of 2020 on Job Creation (Omnibus Law) was declared conditionally unconstitutional by Constitutional Court Decision No. 91/PUU-XVIII/2020. In response, the Government issued Government Regulation in Lieu of Law (Perppu) No. 2 of 2022 on 30 December 2022. On 31 March 2023, Law No. 6 of 2023 formally enacted the Perppu as a statute.
▷ On 31 October 2024, the Constitutional Court issued Decision No. 168/PUU-XXI/2023, reinterpreting Section 151 of the Manpower Act so that, where bipartite negotiations fail, termination of employment may only be carried out after obtaining a ruling from an industrial relations dispute resolution body.
▷ In 2025–2026, the Government is working on a new Labour Law pursuant to the Constitutional Court’s order. As of July 2026, no new Law has been adopted.

▷ Reforms in process: The revision of the Manpower Act (Act No. 13 of 2003), in accordance with Constitutional Court Decision No. 168/PUU-XXI/2023, is in progress.

▶ Manpower Act (as amended by Law No. 6 of 2023)
▷ Fixed-term contracts (Perjanjian Kerja Waktu Tertentu – PKWT) are regulated under sections 56 to 59 of the MA.
→ Section 56 MA (as amended by Law No. 6 of 2023) indicates that:
(1) A work agreement may be made for a specified time or for an unspecified time.
(2) A work agreement for a specified time shall be made based on:
a. A term; or
b. The completion of a certain job
(3) The time period or completion of a certain job as referred to is determined based on the work agreement.
(4) Further provisions regarding fixed-term work agreements based on a time period or completion of a particular job are regulated in Government Regulations.
→ Section 57 MA (as amended by Law No. 6 of 2023) provides that:
(1)Employment agreements for a fixed period are made in writing and must use Indonesian and Latin script.
(2)In the case of a fixed-term employment agreement being made in Indonesian and a foreign language, if there is a difference in interpretation between the two, the fixed-term employment agreement made in Indonesian shall apply.
▶ Government Regulation No. 35 of 2021 (GR 35/2021)
→ Section 1(10) GR 35/2021 indicates that: Perjanjian Kerja Waktu Tertentu (Employment agreement for a Specified Period of Time), hereinafter referred to as PKWT, shall be an Employment agreement between a Worker/Labourer and an Employer to establish an Employment Relationship for a specified period of time or for a certain job.
▷ Fixed-term contracts (Perjanjian Kerja Waktu Tertentu – PKWT) are regulated under sections 4 to 17 of GR 35/2021. A fixed-term contract may be concluded for a set period or upon completion of a specific task. The contract must be made in writing and in the Indonesian language.
→ Section 4 GR 35/2021 provides that:
(1) PKWT shall be based on:
a. Period of time; or
b. Completion of a certain job.
(2) PKWT may not be held for jobs that are permanent in nature.

▶ Manpower Act (as amended by Law No. 6 of 2023)
→ Section 59(1) and (2) MA (as amended by Law No. 6 of 2023) provide that: 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 to take a time not too long;
c. Seasonal work;
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; or
e. Work or activities that by type and nature are not permanent.
(2) A work agreement for a specified time cannot be made for jobs that are permanent by nature.
(3) Any work agreement for a specified time that does not
fulfil the requirements mentioned under subsection(1) and subsection (2) shall, by law, become a work agreement for an unspecified time.
(4) Further provisions regarding the type and nature of work or activities, time period and time limit for extension of fixed-term work agreements are regulated in Government regulations.
▶ Government Regulation No. 35 of 2021 (GR 35/2021)
▷ Fixed-term contracts may only be used for work that is temporary in nature, including:
▻ work that is completed at once or is temporary;
▻ seasonal work;
▻ work related to a new product or activity still in the experimental stage; or
▻ work whose completion is estimated within a certain time.
Fixed-term contracts cannot be used for permanent work.
→ Section 5 GR 35/2021 states that: (1) PKWT based on the period of time as referred to in section 4 subsection (1) letter a shall be made for certain jobs, namely:
a. jobs which are estimated to be completed in a not too long a time;
b. jobs that are seasonal in nature; or
c. jobs related to new products, new activities, or additional products that are still in a trial or exploration period.
(2) PKWT based on the completion of a certain job as referred to in section 4 subsection (1) letter b shall be made for certain jobs, namely:
a. one-time jobs; or
b. jobs that are temporary in nature.
(3) In addition to certain jobs as referred to in subsection (1) and subsection (2), PKWT may be implemented for other certain jobs whose types and nature or activities are not permanent.
→ Section 6 GR 35/2021 stipulates that: The jobs which are estimated to be completed in a not too long time as referred to in section 5 subsection (1) letter a shall be performed for a period of no longer than 5 (five) years.

▶ Government Regulation No. 35 of 2021 (GR 35/2021)
▷ There is no limit on the number of successive fixed-term contracts, provided that the total cumulative duration does not exceed 5 years (§§ 5 and 8 GR 35/2021).

▶ Government Regulation No. 35 of 2021 (GR 35/2021)
→ Under sections 5 and 8 of GR 35/2021, the maximum cumulative duration of a fixed-term contract (including any extensions) is 5 years (60 months).
→ Section 6 GR 35/2021 stipulates that: The jobs which are estimated to be completed in a not too long time as referred to in section 5 subsection (1) letter a shall be performed for a period of no longer than 5 (five) years.
→ Section 8(1) GR 35/2021 stipulates that: PKWT based on the period of time as referred to in section 5 subsection (1) may be made for a period of no longer than 5 (five) years.

▶ Manpower Act (as amended by Law No. 6 of 2023)
→ Section 60(1) MA provides that a work agreement for an unspecified period of time may require a probation period of no longer than 3 (three) months.
→ Section 58 MA (as amended by Law No. 6 of 2023) provides that:
(1) A fixed-term employment agreement cannot require a trial period.
(2) In the event that a trial period is required as referred to in subsection (1), the trial period requirement is void by law and the work period is still counted.
▶ Government Regulation No. 35 of 2021 (GR 35/2021)
→ Under section 12(1) of GR 35/2021, PKWT [fixed-term contracts or Perjanjian Kerja Waktu Tertentu (PKWT) (Employment agreement for a Specified Period of Time)] may not require a probationary period.

▶ Manpower Act (as amended by Law No. 6 of 2023)
▷ Civil servants (pegawai negeri) are governed by specific civil service regulations and are therefore excluded from the termination provisions of the Manpower Act.
▷ Domestic workers (pekerja rumah tangga)
The Domestic Workers Protection Law (Undang-Undang tentang Pelindungan Pekerja Rumah Tangga) was passed in April 2026. However, explicit legal standards regarding dismissal, severance pay, and dispute resolution for domestic workers remain largely undefined. Domestic workers therefore continue, for the time being, to fall outside the full application of the termination and severance provisions of the Manpower Act.

▶ Manpower Act (as amended by Law No. 6 of 2023)
→ Under section 153(1) MA (as amended by Law No. 6 of 2023), employers are prohibited from terminating employment relationships with employees/laborers for the following reasons:
a. The worker is unable to come to work due to illness according to a doctor's statement for a period not exceeding 12 (twelve) months continuously;
b. The worker is unable to carry out their work due to fulfilling obligations to the state in accordance with the provisions of laws and regulations;
c. The worker is carrying out religious worship as ordered by their religion;
d. The worker is married;
e. The worker is pregnant, has given birth, has had a miscarriage, or is breastfeeding their baby;
f. The worker has blood ties and/or marital ties with another worker in the same enterprise;
g. The worker is establishing, becoming a member and/or administrator of a trade union/labour union, workers/laborers carrying out trade union/labour union activities outside of working hours, or during working hours with the agreement of the employer, or based on provisions stipulated in the work agreement, company regulations, or collective work agreement;
h. The worker is reporting the employer to the authorities regarding the employer's actions that commit criminal acts;
i. The worker has different beliefs, religion, political beliefs, ethnicity, skin colour, social class, gender, physical condition, or marital status; and
j. The worker is in a state of permanent disability, illness due to a work accident, or illness due to work relations for which, according to a doctor's certificate, the recovery period cannot be determined.
(2) Termination of employment carried out for the reasons referred to in subsection (1) is null and void by law and the employer is obliged to re-employ the worker/labourer concerned.
▶ Law No. 13 of 2006 concerning Protection of Witnesses and Victims
→ Provides additional protection related to whistleblowing

▶ Manpower Act (as amended by Law No. 6 of 2023)
→ Section 153 MA (as amended by Law No. 6 of 2023) provides special protection against termination of employment for the following categories of workers:
▷ Pregnant women and women on maternity leave:
→ Section 153(1)(e) prohibits termination on the grounds that the worker is pregnant, has given birth, has had a miscarriage, or is breastfeeding her baby.
▷ Workers suffering from temporary illness or work-related injury/illness:
→ Section 153(1)(a) and (j) prohibit termination because the worker is unable to work due to illness (up to 12 months) or is in a state of permanent disability or illness resulting from a work accident or occupational disease.
▷ Workers’ representatives/trade union members and officials:
→ Section 153(1)(g) prohibits termination on the grounds that the worker is establishing, becoming a member, and/or an official of a trade union/labour union, or is carrying out trade union activities.

▶ Manpower Act (as amended by Law No. 6 of 2023)
→ Section 151(2) MA (as amended by Law No. 6 of 2023) provides that: In the event that termination of employment cannot be avoided, the employer shall notify the worker/labourer and/or the trade union/labour union of the intent and the reasons for the termination of employment.
▶ Government Regulation No. 35 of 2021 (GR 35/2021)
→ Section 37 GR 35/2021 further regulates the notification of termination, requiring the employer to notify the worker of the intent and reasons for termination in writing.
→ Section 37(2 and 3) GR 35/2021 indicates that:
(2) In the event that Termination of Employment Relations is unavoidable, the Employer shall notify the purpose and reasons for the termination of employment to the Worker/Labourer and/or Trade Union/Labour Union in the Company in case the Worker/Labourer concerned is a member of the Trade Union/Labour Union.
(3) An employment termination notification shall be made in the form of a notification letter and submitted legally and properly by the Employer to the Worker/Labourer and/or Trade Union/Labour Union no later than 14 (fourteen) working days prior to the termination of employment.

▶ Manpower Act (as amended by Law No. 6 of 2023) and Government Regulation No. 35 of 2021
▷ There is no traditional statutory notice period expressed as a period of service-based months.
▶ Government Regulation No. 35 of 2021 (GR 35/2021)
→ Under GR 35/2021, the employer must notify the worker in writing at least 14 working days before the termination takes effect (Section 37(2)).
→ Termination is primarily governed by the notification and bipartite negotiation process.

▶ Manpower Act (as amended by Law No. 6 of 2023)
▷ There is no specific legal definition of collective dismissal and no special procedure applicable only to collective dismissals.
→ Economic reasons for termination are now covered under the general list of grounds in the new section 154A MA (in particular subsections (a) to (f)).
▶ Government Regulation No. 35 of 2021 (GR 35/2021)
→ Sections 36- 48 of GR 35/2021 provide detailed procedures for termination of employment in general, which also apply to terminations based on economic grounds. It does not create a separate collective dismissal procedure.
▷ Note: The previous specific provisions on economic dismissals (old §§ 163, 164 and 165) were deleted by the Omnibus Law.

▶ Manpower Act (as amended by Law No. 6 of 2023)
→ Section 151(2) MA (as amended by Law No. 6 of 2023) requires the employer to notify the worker/labourer and/or the trade union/labour union of the intent and reasons for termination and to conduct bipartite negotiations.
▷ This general obligation also applies to terminations for economic reasons.
▶ Government Regulation No. 35 of 2021 (GR 35/2021)
→ Section 37 GR 35/2021 requires the employer to notify the worker and/or the trade union.
→ Section 37(2 and 3) GR 35/2021 indicates that:
(2) In the event that Termination of Employment Relations is unavoidable, the Employer shall notify the purpose and reasons for the termination of employment to the Worker/Labourer and/or Trade Union/Labour Union in the Company in case the Worker/Labourer concerned is a member of the Trade Union/Labour Union.
(3) An employment termination notification shall be made in the form of a notification letter and submitted legally and properly by the Employer to the Worker/Labourer and/or Trade Union/Labour Union no later than 14 (fourteen) working days prior to the termination of employment.
→ Section 39(2) GR 35/2021 stipulates that: In the event of a dispute regarding the Termination of Employment, the settlement of the Termination of Employment shall be made through bipartite negotiations between the Employer and the Worker/Labourer and/or the Trade Union/Labour Union.

▶ Manpower Act (as amended by Law No. 6 of 2023)
▷ No statutory obligation to notify the public administration specifically in cases of collective or economic dismissals was identified.

▶ Manpower Act (as amended by Law No. 6 of 2023)
→ Section 151(2) MA (as amended by Law No. 6 of 2023) requires notification to the worker and/or the trade union/labour union.
▶ Government Regulation No. 35 of 2021 (GR 35/2021)
→ Section 37 GR 35/2021 requires the employer to notify the worker and/or the trade union.
→ Section 37(2 and 3) GR 35/2021 indicates that:
(2) In the event that Termination of Employment Relations is unavoidable, the Employer shall notify the purpose and reasons for the termination of employment to the Worker/Labourer and/or Trade Union/Labour Union in the Company in case the Worker/Labourer concerned is a member of the Trade Union/Labour Union.
(3) An employment termination notification shall be made in the form of a notification letter and submitted legally and properly by the Employer to the Worker/Labourer and/or Trade Union/Labour Union no later than 14 (fourteen) working days prior to the termination of employment.

▶ Manpower Act (as amended by Law No. 6 of 2023), as reinterpreted by Constitutional Court Decision No. 168/PUU-XXI/2023 of 31 October 2024
→ There is no specific procedure for collective dismissals. Economic terminations follow the general rules under section 151 MA.
→ Following Constitutional Court Decision No. 168/PUU-XXI/2023, if bipartite negotiations fail, termination may only be carried out after obtaining a ruling from an industrial relations dispute resolution body whose decision has permanent legal force.

▶ Manpower Act (as amended by Law No. 6 of 2023)
→ Section 151(2) MA (as amended by Law No. 6 of 2023) requires notification and bipartite negotiation, but does not require the consent or approval of the trade union.

▶ Manpower Act (as amended by Law No. 6 of 2023)
▷ No statutory priority rules for the selection of employees to be dismissed were found in the examined legislation.

▶ Manpower Act (as amended by Law No. 6 of 2023)
▷ No statutory provisions on the priority of re-employment were found.

▶ Manpower Act (as amended by Law No. 6 of 2023)
→ Section 151(1) MA (as amended by Law No. 6 of 2023) provides that the employer, the worker/labourer, the trade union/labour union, and the government must make all efforts to prevent termination of employment.

▷ There continues to be no specific legal regime for collective dismissals in Indonesia. Economic dismissals are handled under the general termination framework (§ 151 MA and § 154A MA, as further regulated by GR 35/2021). The main procedural requirements are written notification (at least 14 working days in advance under Section 37 GR 35/2021) and bipartite negotiations.

▶ Manpower Act (as amended by Law No. 6 of 2023)
→ Section 156 MA (as amended by Law No. 6 of 2023) continues to provide that in the event of termination of employment, the employer is obliged to pay the worker severance pay (uang pesangon), service award money / long-service pay (uang penghargaan masa kerja), and compensation for rights (uang penggantian hak). (See full citation of section 156 MA, as amended, in EPLex - Indonesia - year 2020).
→ Under section 156(2), the basic scale of severance pay remains a maximum of 9 months’ wages.
▶ Government Regulation No. 35 of 2021 (GR 35/2021)
▷ GR 35/2021 (§§ 40–57) establishes new multipliers that apply to the basic severance pay and long-service pay, depending on the ground for termination.
→ Section 40 GR 35/2021 indicates that:
(1) In the event of termination of employment, the Employer shall be required to pay severance pay and/or long service pay, and compensation for rights that should have been received.
(2) The severance pay as referred to in paragraph (1) shall be provided with the following provisions:
a. for service period of less than 1 (one) year, 1 (one) month of wage;
b. for service period of 1 (one) year or more but less than 2 (two) years, 2 (two) months of Wage;
c. for service period of 2 (two) years or more but less than 3 (three) years, 3 (three) months Wage;
d. for service period of 3 (three) years or more but less than 4 (four) years, 4 (four) months of Wage;
e. for service period of 4 (four) years or more but less than 5 (five) years, 5 (five) months of Wage;
f. for service period of 5 (five) years or more, but less than 6 (six) years, 6 (six) months of Wage;
g. for service period of 6 (six) years or more but less than 7 (seven) years, 7 (seven) months of Wage;
h. for service period of 7 (seven) years or more but less than 8 (eight) years, 8 (eight) months of Wage; and
i. for service period of 8 (eight) years or more, 9 (nine) months of Wage. (...).
→ Sections 41 to 57 of GR 35/2021 regulate the specific amounts of severance pay and service award money that must be paid according to the different grounds for termination. These sections establish differentiated multipliers that apply to the basic scale under section 40, depending on the reason for termination. The full text of sections 41 to 57 is extensive. In summary, the Regulation provides for higher or lower entitlements according to the ground of termination, including efficiency measures, company closure, force majeure, bankruptcy, retirement, death, permanent disability, prolonged illness, resignation, and other reasons as listed.

▶ Manpower Act (as amended by Law No. 6 of 2023)
▷ There is no longer a separate statutory redundancy payment.
→ The previous provisions under the old Sections 163, 164 and 165 that provided for higher multipliers of severance pay in certain economic dismissal cases were deleted by the Omnibus Law.
→ Termination for economic reasons is now governed by the general framework of section 156.
→ The amount payable depends on the specific economic ground (efficiency, closure due to losses, force majeure, bankruptcy, etc.).
▶ Government Regulation No. 35 of 2021 (GR 35/2021)
→ Sections 40 to 57 regulate the calculation of severance pay and service award money according to the different grounds for termination, including economic reasons.
→ The amount payable in cases of efficiency, company closure, force majeure or bankruptcy is determined by applying the specific multipliers set out in these sections to the basic scale under section 40.

▷ With the issuance of Government Regulation No. 35 of 2021, the calculation of severance pay is now determined by applying specific multipliers to the basic scale under section 156 of the Manpower Act (as amended by Law No. 6 of 2023). The multipliers vary according to the reason for termination. The previous higher multipliers (especially the 2× rule for certain economic dismissals) no longer apply.