Christina Desy, Fitri N. Heriani, Ady TD Achmad, Muhammad Yasin
As part of globalization, greater movement of foreign workers is inevitable, a situation that is expected to increase with the upcoming ASEAN Economic Community. The Ministry of Manpower recorded 68,762 foreign workers employed in Indonesia in 2014 alone. China, Japan, and South Korea dominate the composition of these workers.
Commenting on this issue, Hernoko D. Wibowo, a lawyer at Sudjono & Rekan Law Office, believes that foreign workers need to have a good understanding of the Indonesian labor law framework, including the process for resolving labor disputes through the Industrial Relations Court (Pengadilan Hubungan Indsustrial - PHI).
Mr. Wibowo explained that foreign workers are entitled to submit a work disputes to be settled at PHI despite of their inability to be permanent employees in Indonesia. Unfortunately, Mr. Wibowo has observed that foreign workers tend to ignore this option.
Bambang Kustopo, from the Public Relation office at the Central Jakarta District Court, said that there have only been few cases submitted by foreign workers to the PHI. For one of these cases, Mr. Kustopo referred to the case of Andrew Ivan Ward, an Australian citizen who was employed to manage an Australia-Indonesian international school and requested PHI to order the school to fully pay his salary.
“A similar case was also submitted by Dirk Stuip who requested PHI to order PT Marsh Indonesia to pay the remainder of his salary after being terminated,” added Mr. Kustopo.
Mr. Kustopo also highlighted the issue of choice of law in cases where foreign companies terminate their workers who work in their branches in Indonesia. This issue was previously raised under Decision No. 278 K/Pdt.Sus/2011, in a dispute between an employee working in Indonesia with a Singaporean company.
In this case, the employee worked for the branch of Singaporean company in Indonesia and requested the company pay her religious holiday allowances (tunjangan hari raya). However, the company’s manager refused her request arguing that the company was bound by Singaporean laws and regulations.
At the cassation level, the Supreme Court decided that the relation between the respective employee and her employer must comply with Indonesian laws. The Supreme Court also highlighted that there were not any express provisions stating that the employment was governed by Singaporean laws.
Mr. Kustopo added that such cases are usually settled with reference to the working contract between the disputing parties. Despite any purported application of other laws, he believes that employment contracts for employment in Indonesia should comply with Indonesian laws and regulations, despite the fact that such employment involves foreign parties.
Christina Desy, Fitri N. Heriani, Ady TD Achmad, Muhammad Yasin
As part of globalization, greater movement of foreign workers is inevitable, a situation that is expected to increase with the upcoming ASEAN Economic Community. The Ministry of Manpower recorded 68,762 foreign workers employed in Indonesia in 2014 alone. China, Japan, and South Korea dominate the composition of these workers.
Commenting on this issue, Hernoko D. Wibowo, a lawyer at Sudjono & Rekan Law Office, believes that foreign workers need to have a good understanding of the Indonesian labor law framework, including the process for resolving labor disputes through the Industrial Relations Court (Pengadilan Hubungan Indsustrial - PHI).
Mr. Wibowo explained that foreign workers are entitled to submit a work disputes to be settled at PHI despite of their inability to be permanent employees in Indonesia. Unfortunately, Mr. Wibowo has observed that foreign workers tend to ignore this option.
Bambang Kustopo, from the Public Relation office at the Central Jakarta District Court, said that there have only been few cases submitted by foreign workers to the PHI. For one of these cases, Mr. Kustopo referred to the case of Andrew Ivan Ward, an Australian citizen who was employed to manage an Australia-Indonesian international school and requested PHI to order the school to fully pay his salary.
“A similar case was also submitted by Dirk Stuip who requested PHI to order PT Marsh Indonesia to pay the remainder of his salary after being terminated,” added Mr. Kustopo.
Mr. Kustopo also highlighted the issue of choice of law in cases where foreign companies terminate their workers who work in their branches in Indonesia. This issue was previously raised under Decision No. 278 K/Pdt.Sus/2011, in a dispute between an employee working in Indonesia with a Singaporean company.
In this case, the employee worked for the branch of Singaporean company in Indonesia and requested the company pay her religious holiday allowances (tunjangan hari raya). However, the company’s manager refused her request arguing that the company was bound by Singaporean laws and regulations.
At the cassation level, the Supreme Court decided that the relation between the respective employee and her employer must comply with Indonesian laws. The Supreme Court also highlighted that there were not any express provisions stating that the employment was governed by Singaporean laws.
Mr. Kustopo added that such cases are usually settled with reference to the working contract between the disputing parties. Despite any purported application of other laws, he believes that employment contracts for employment in Indonesia should comply with Indonesian laws and regulations, despite the fact that such employment involves foreign parties.