As Eid al-Fitr approaches, discussions on Religious Holiday Allowances or Tunjangan Hari Raya (“THR”) resurface, particularly regarding online drivers and couriers. While THR for formal employees is a legal obligation under labor law, gig workers like online drivers are not entitled to it. In response to this, the government issued a recommendation through Minister of…
Bribery in Human Resource Management (“HRM”) poses significant risks to a company’s integrity, efficiency, and employee morale. Bribery can occur in recruitment, promotions, payroll management, and training allocations, leading to favoritism, nepotism, and financial misconduct. To mitigate these risks, companies must implement strict anti-bribery measures, including merit-based recruitment, ethics training, and disciplinary actions against violations….
Employment discrimination in Indonesia remains a significant issue, impacting fairness and productivity in the workplace. To address this, Indonesia has aligned its laws with international standards, notably by ratifying the International Labour Organization (“ILO”) Convention Number 111 Concerning Discrimination in Respect of Employment and Occupation through Law Number 21 of 1999 (“Law 21/1999“) and enacting…
The Ministry of Manpower’s Regulation Number 16 of 2024 concerning the Determination of the 2025 Minimum Wage mandates a 6.5% increase in Indonesia’s 2025 minimum wage, impacting businesses significantly. While promoting fair compensation, this poses challenges, particularly for labor-intensive sectors. Compliance is crucial, as paying below the minimum wage may lead to severe penalties under…
Our Employment & Manpower Practice Group at ADCO Law proudly presents this comprehensive article compilation. From navigating regulatory compliance to fostering equitable workplaces, this collection offers actionable insights designed to empower employers, HR professionals, and employees. Dive into practical solutions, proactive strategies, and expert legal perspectives that simplify complexities and promote harmonious workplace relationships. Explore…
Constitutional Court Decision No. 168/PUU-XXI/2023 (“Decision 168/2023”) marks an important development in Indonesia’s employment law, introducing clarifications and reaffirmations to key provisions under the Law Number 6 of 2023 on the Stipulation of Government Regulation in Lieu of Law Number 2 of 2022 on Job Creation to Become Law (“Employment Law”). It addresses critical aspects…
Indonesia’s growing market and dynamic economy present opportunities for global businesses to expand, with hiring foreign employees becoming a crucial part of this strategy. However, ensuring compliance with immigration and manpower laws is essential to avoid legal issues. Key regulations include the Immigration and Manpower Law, which sets the framework for hiring foreign nationals. Employers…
The rise of cross-border remote work, accelerated by the COVID-19 pandemic, has transformed traditional workspaces and introduced new challenges in Indonesia. Despite its benefits, such as access to global talent, remote work faces legal complexities, particularly in work hours, social security, and taxation, due to the lack of specific regulations. As the trend grows, clear…
Overview Technological advancements, including AI and automation, are transforming workplaces globally, presenting opportunities and challenges. This article explores how these changes impact employment, emphasizing the rapid pace of technological evolution and its potential to render many jobs obsolete. It examines how Indonesia’s Employment Law, particularly provisions related to job training and compensation during terminations, helps…
The House of Representatives of the Republic of Indonesia or Dewan Perwakilan Rakyat Republik Indonesia (“DPR”) has recently approved the Bill on Maternal and Child Welfare in the First Thousand Days of Life (“KIA Law”) into law during the 19th Plenary Meeting of DPR Year 2023-2024 held on 4th June 2024. This historic law confirms…
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