References
▷ Law No. 11 of 2020 on Job Creation (Omnibus Law) was enacted on 2 November 2020. This law significantly amends the Manpower Act (Act No. 13 of 2003), particularly the provisions on fixed-term contracts, termination of employment, and severance pay.
▷ Detailed implementing regulations will be issued in 2021.
Act No. 13 of 2003 concerning Manpower [MA]
Date:
1 Jan 1970;
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(view in NATLEX
»)
Act No. 2 of 2004 concerning Industrial Relations Disputes Settlements [IRDSA]
Date:
1 Jan 1970;
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(view in NATLEX
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Act No. 21 of 2000 concerning Trade Unions [TUA]
Date:
1 Jan 1970;
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(view in NATLEX
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Law No. 13 of 2006 concerning protection of witness and victims
Date:
1 Jan 1970;
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Government Regulation No. 35 of 2021 (GR 35/2021)
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Law No. 11 of 2020 on Job Creation (Omnibus Law / Undang-Undang Cipta Kerja) - (Available in original language only)
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Scope
Size of enterprises excluded (≤): none
▶ Manpower Act (MA)
→ 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.
Workers' categories excluded: civil/public servants, domestic workers
▶ Manpower Act (MA)
→ 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)
Reforms under process:
▷ Following the enactment of Law No. 11 of 2020 on Job Creation, the Government is preparing implementing regulations.
Valid grounds (justified dismissal):
Prohibited grounds:
Workers enjoying special protection: