Draft Regulation of the Government on Work Agreements for Specific Timeframes, Outsourcing, Working Hours and Breaks, and Employment Terminations

  • Work Agreements for Specific Timeframes (Perjanjian Kerja Waktu Tertentu – “PKWT”) that are based on duration apply to certain jobs, including: 1) Temporary work; 2) Work that is seasonal in nature (bersifat musiman); and 3) Work that relates to new products, new activities and additional products that are still being tested or assessed. Meanwhile, based on the completion of a certain job of work, PKWT should be drawn up for certain jobs, including: 1) One-time jobs (pekerjaan yang sekali selesai); or 2) Work which is estimated to be completed in a short period of time.
  • Companies operating within certain business sectors may apply working hours that are either more or less than the stipulated provisions, specifically companies that have the following characteristics: 1) The relevant work can be completed within less than seven hours during a single day; 2) Companies that organize flexible working hours; or 3) The relevant work can be completed outside the relevant working location.
  • Stipulates formulae for calculations of severance pay, tenure awards and compensation that should be paid by employers when terminating their employees based on permitted applicable reasons. Furthermore, micro- and small-scale businesses are also obliged to provide severance pay, tenure awards and compensation for workers/laborers that have been terminated and that should amount to at least 50% of the rights stipulated in the relevant provisions on employment terminations.
  • Draft Regulation of the Government on Work Agreements for Specific Timeframes, Outsourcing, Working Hours and Breaks, and Employment Terminations (“RPP”) is currently being deliberated by the government and thus further changes may be introduced. The RPP can be accessed here.
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  • Work Agreements for Specific Timeframes (Perjanjian Kerja Waktu Tertentu – “PKWT”) that are based on duration apply to certain jobs, including: 1) Temporary work; 2) Work that is seasonal in nature (bersifat musiman); and 3) Work that relates to new products, new activities and additional products that are still being tested or assessed. Meanwhile, based on the completion of a certain job of work, PKWT should be drawn up for certain jobs, including: 1) One-time jobs (pekerjaan yang sekali selesai); or 2) Work which is estimated to be completed in a short period of time.
  • Companies operating within certain business sectors may apply working hours that are either more or less than the stipulated provisions, specifically companies that have the following characteristics: 1) The relevant work can be completed within less than seven hours during a single day; 2) Companies that organize flexible working hours; or 3) The relevant work can be completed outside the relevant working location.
  • Stipulates formulae for calculations of severance pay, tenure awards and compensation that should be paid by employers when terminating their employees based on permitted applicable reasons. Furthermore, micro- and small-scale businesses are also obliged to provide severance pay, tenure awards and compensation for workers/laborers that have been terminated and that should amount to at least 50% of the rights stipulated in the relevant provisions on employment terminations.
  • Draft Regulation of the Government on Work Agreements for Specific Timeframes, Outsourcing, Working Hours and Breaks, and Employment Terminations (“RPP”) is currently being deliberated by the government and thus further changes may be introduced. The RPP can be accessed here.
......

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*Syarat dan ketentuan berlaku
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