1 helps provide clear provision that is lacking the Manpower Law. Once a foreign employee’s work permit has expired but their fixed-term employment agreement hasn’t, the rest of the period specified in the fixed-term employment contract will not subject to legal protection under the Indonesian Labor Law.Foreign employees are only eligible for legal protections when they have acquired a work permit in Indonesia.Companies can only employ foreigners with a fixed-term employment agreement (PKWT) for particular positions for a certain period of time.The Indonesian Supreme Court released new Labor Court’s policies which are listed below: The Labor Court does not further state any further decisions on this issue. Therefore, in other words, foreigners can be either fixed-term employees or permanent employees. However, the governing language in a bilingual agreement must be Indonesian.Ī fixed-term employment contract will become a permanent employment contract by law if companies violate the mentioned requirements. The writing in all fixed-term employment contracts is required to be Indonesian language but bilingual employment contracts are also allowed. The contract can further be extended once for a maximum of one year and be renewed once for a maximum for two years along with a grace period of 30 days. So can foreigners be hired as permanent employees in Indonesia? There is a debate going on for this question due to one of the sections under the Manpower Law mentioning that the agreement must specify the employment period of foreign staff.Īccording to the law, two years’ time is the maximum period for a fixed-term employment contract. Foreigners Employed Permanently in Indonesia In other words, it means that foreigners are not able to work permanently in Indonesia.Īs a result, expats are not able to have the termination benefits such as service pay, severance pay, and compensation pay, as specified in the law. Under the Indonesian Manpower Law, foreigners are only allowed to work under a fixed-term contract. Overview of Foreign Employment and Its Termination Benefits in Indonesia It also contains the policies of the Labour Court especially in regards to foreign employment and its termination benefits specified under the Manpower Law 13/2003 in Indonesia.Ĭekindo will elaborate the labour policy in this article. 1 consists of new policies that Indonesian courts must exercise when dealing with civil, criminal, military and religious issues. If you are looking to hire foreigners to work for your company in Indonesia, you need to familiarise yourself with a guideline called SEMA No.
How Cekindo can Assist Foreigners to Work in Indonesia.Foreigners Employed Permanently in Indonesia.Overview of Foreign Employment and Its Termination Benefits in Indonesia.Therefore, to encourage optimization of the banking intermediation function, maintain financial system stability, and support economic growth, an economic stimulus policy is needed as a counter cylical effect of the spread of COVID-19. The results show that the government's efforts to maintain public safety and maintain economic stability, in the spread of COVID-19, can affect the performance and capacity of micro, small and medium business debtors, thus potentially disrupting banking performance and financial system stability which can affect economic growth. This study uses a normative juridical research method with a statute approach and a case approach. The purpose of this study is to examine and analyze the legal consequences of employers who terminate the employment of PKWT workers who are affected by COVID-19 and the Bank's policy to set aside credit agreements for debtors affected by the termination of employment. Corona Virus Disease-19 (COVID-19) in Indonesia has a bad impact on the country's economy, banking, even the survival of the Community / Worker.
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