The Minister of Manpower and Transmigration (“Minister”) has issued Regulation No. 4 of 2014 on Work, Rest and Break Periods for the Upstream Oil and Gas Sector (“2014 Regulation”).
The 2014 Regulation provides specific provisions on overtime, rest and break periods for workers (“Employees”) employed by the upstream oil and gas companies and oil and gas auxiliary service companies (“shall be referred to as “Employers”).
The 2014 Regulation was issued with consideration given to the nature of the upstream oil and gas industry that is different than other industries in terms of work location, working hours, and type of work. In general, the ambit of 2014 Regulation covers the following matters:
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a.
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Overtime scheme options for Employees;
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b.
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Formula for calculating overtime compensation for Employees; and
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c.
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Exemptions to compliance with certain provisions of the 2014 Regulation.
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One important definitional concept is overtime itself which means an Employee who works for more than or on the following periods (Art. 1 (2), 2014 Regulation):
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a.
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7 hours/day or 40 hours/week for 6 work days/week;
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b.
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8 hours/day and 40 hours/week for 5 work days/week; or
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c.
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Any time during weekly rest periods and public holidays.
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The 2014 Regulation is relevant to the upstream oil and gas sector (oil and gas operators and auxiliary service businesses).
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