Overview As Indonesia’s workforce embraces freelancing and gig-based jobs, legal questions arise over their employment status. This article examines whether freelancers and gig workers are protected under Indonesian labor law, focusing on the legal definition of employment, daily freelance work provisions, and the risks of misclassification. It highlights that labels like “freelancer” do not shield…
The interplay between employment agreements, company regulations, and collective labor agreements often creates legal uncertainty for employers in Indonesia. Understanding their hierarchy and applying the principle of favor laboris, which prioritizes provisions most favorable to employees, is essential to ensure compliance and prevent disputes. Practical tips such as harmonizing documents, monitoring legal changes, and seeking…
In Indonesia’s dynamic employment landscape, labour law compliance is critical to fostering a transparent, fair, and productive workplace. From ensuring fair wages and lawful termination to promoting workplace safety and inclusivity, compliance enhances employee trust, reduces disputes, and strengthens organizational stability. When embedded into daily operations—through clear contracts, consistent policies, and regular audits—compliance also supports…
Corporate crimes have become increasingly complex in the modern era, particularly within the context of Indonesia’s evolving criminal law system. The question of whether directors can be held criminally liable for crimes committed by corporations is becoming ever more relevant, especially considering that corporate crimes are now more covert, systemic, and far-reaching due to technological…
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…
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…