SUMMARY

Government Regulation No.35 Year 2021

About
WORKING AGREEMENTS FOR SPECIFIC TIME, TRANSFER OF MANPOWER, WORKING TIME
AND REST TIMES AND TERMINATION OF WORK RELATIONSHIP

For Contract Basis

No Articles Subjects Remarks
1 Article 8 1) a contract based on a period can be drawn up for a Contract
maximum of 5 years. maximum 5
2) the total amount of the contract along with the extension is
not more than 5 years. years
3) The work period of workers in terms of contract extension is
calculated from the date the employment relationship is
based on the contract.

2 Article 15 1) Employers are obliged to provide compensation money to payment of

workers whose working relationship is based on a contract. compensation
2) The compensation money is given at the end of the
contract. money
3) Compensation money as referred to in paragraph 1) is given
to workers who have worked at least 1 (one) month
continuously.
4) If the Contract is extended, the compensation money is
given at the completion of the contract period before the
extension, the next compensation money will be given after
the contract extension ends.
5) the provision of compensation money does not apply to
foreign workers who work under a contract.

3 Article 16 1) The amount of compensation money is given in accordance Amount of

with the following conditions: compensation
a. a contract for 12 months of continuous compensation for money
1 month of wages
b. contracts for 1 month or more but less than 12 months
are calculated on a prorated basis (the working period is
divided by 12 times one month's wages).
c. contracts for more than 12 months are prorated by
calculation (divided by 12 times one month's wages of
service).
2) The wages used as the basis for calculating the payment of
compensation consist of the basic wage and fixed
allowances.

4 Article 21 Work time and rest time Same as

previously

For Permanent Basis – Almost same with UU No.13 Year 2003 (Previously)
No Article Subject Remarks
1 Article 40 1) In the event of termination of employment, the Termination and
employer /entrepreneur is obliged to pay severance pay, severance pay
service and compensation pay that the employee should (same as
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 receive. previously)
2) Severances Pay: Only
Working period < 1 year : 1 month wage 15% of Total
Working period > 1 year, < 2 years, 2 months wage Severance Pay
Working period > 2 year, < 3 years, 3 months wage plus Service Pay
Working period > 3 year, < 4 years, 4 months wage No more
Working period > 4 year, < 5 years, 5 months wage
Working period > 5 year, < 6 years, 6 months wage
Working period > 6 year, < 7 years, 7 months wage
Working period > 7 year, < 8 years, 8 months wage
Working period > 8 years or more, 9 months wage

3) Service Pay:
Working period > 3 years, < 6 years, 2 months wage
Working period > 6 years, < 9 years, 3 months wage
Working period > 9 years, < 12 years, 4 months wage
Working period > 12 years, < 15 years, 5 months wage
Working period > 15 years, < 18 years, 6 months wage
Working period > 18 years, < 21 years, 7 months wage
Working period > 21 years, < 24 years, 8 months wage
Working period > 24 years or more, 10 months wage

4) Compensation Pay
a. unclaimed annual leave
b. transportation return costs for which the worker is
accepted.
c. other matters referring to the work agreement and
company regulations

2 Article 41 The employer may terminate the employment of his or her 100% Article 40
workers in the event of the enterprise merger, fusion of the Para 2,3 and 4
enterprise and the workers are not willing to continue their
employment
3 Article 42 1) The employer may terminate the employment of his or 100% Article 40
her workers in the event of change in the status of the Para 2,3 and 4
enterprise (take over by another company).

2) In the event of a takeover of the company and there is a 50% Article 40

change in the conditions of work and the worker is not Para 2
willing to continue the work relationship. 100 % Para 3
and Para 4
4 Article 43 1) The employer may terminate the employment of his or 50% Article 40
her workers in the event Efficiency because the company Para 2
loses. 100 % Para 3
and Para 4

2) The employer may terminate the employment of his or 100% Article 40

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 her workers in the event Efficiency because the company Para 2,3 and 4
prevents loses.

5 Article 44 1) The employer may terminate the employment of his or 50% Article 40
her workers in the event company closes because it has Para 2
suffered continuous losses for 2 years, either continuously 100 % Para 3
or not. and Para 4

2) The employer may terminate the employment of his or 100% Article 40

her workers in the event company closes due to no losses. Para 2,3 and 4

6 Article 45 1) The employer may terminate the employment of his or 50% Article 40
her workers in the event company closes because force Para 2,3 and 4
majeure.

2) The employer may terminate the employment of his or 75% Article 40

her workers if force majeure and the company not closed. Para 2, 100%
Para 3 and 4

7 Article 46 1) The employer may terminate the employment of his or 50% Article 40
her workers because the company is in a state of Para 2
postponement of its obligation to pay debts which results 100 % Para 3
in the company experiencing losses. and Para 4

2) The employer may terminate the employment of his or 100% Article 40

her workers because the company is in a state of Para 2,3 and 4
postponement of its obligation to pay debts, not because
the company has suffered a loss.

8 Article 47 Termination of employment because the company goes 50% Article 40

bankrupt. Para 2
100 % Para 3
and Para 4
9 Article 48 1) The employer may terminate the employment of his or 100% Article 40
her workers because of a worker request because the Para 2,3 and 4
entrepreneur does:
a. persecution, abuse or threaten workers.
b. against the law
c. not on time to pay wages for 3 consecutive months.
d. does not perform the obligations that have been
promised to workers.
e. ordering workers outside the contract, or
f. provide work that endangers life, safety, health and
morality, where the work is not included in the work
agreement.
10 Article 49 The employer may terminate the employment of his or her No Severance
workers of a court decision stating that the entrepreneur did pay and service
not do what is stated in Article 48 paragraph 1. pay. only

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 Compensation
Pay:
a. unclaimed
annual leave
b. return costs
for which the
worker is
accepted.
c. other
matters
according to
the work
agreement
and company
regulations
then Separation
Pay stated in
Company
regulations.
11 Article 50 Workers resign as own accord No Severance
pay and service
pay. only
Compensation
Pay:
a. unclaimed
annual
leave
b. return
costs for
which the
worker is
accepted.
c. other
matters
according
to the work
agreement
and
company
regulations
then Separation
Pay stated in
Company
regulations.
12 Article 51 The employer may terminate the employment of his or her No Severance
workers because they do not come to work for 5 days and service pay.
continuously without information. Only
Compensation
Pay.
13 Article 52 1) The employer may terminate the employment of his or 50% Article 40
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 her workers of workers because violated work Para 2, 100%
agreements, company regulations (undisciplined). has Para 3 and 4
been given waring 1, 2 and 3.
2) The employer may terminate the employment of his or No Severance
her workers of workers because committing a serious and service pay.
mistake (committing an urgent violation) Compensation
Pay.

14 Article 53 In case the worker is detained by the authorities because he 1 = 25%

or she is alleged to have committed a crime and this happens 2 = 35%
not because of the complaint filed by the entrepreneur, the 3 = 45%
entrepreneur is not obliged to pay the worker wages but is 4 = 50%
obliged to provide [financial] assistance to the members of
his or her family who are his or her dependents:
 If the worker has 1 (one) dependent, the entrepreneur is
obliged to pay 25% of the worker wages.
 If the worker has 2 (two) dependents, the entrepreneur is
obliged to pay 35% of the worker wages.
 If the worker has 3 (three) dependents, the entrepreneur is
obliged to pay 45% of the worker wages.
 If the worker has 4 (four) dependents or more, the
entrepreneur is obliged to pay 50% of the worker wages.

15 Article 55 1) The employer may terminate the employment of his or 200% Article 40
her workers of workers because the worker has a Para 2,
prolonged illness or disability due to a work accident and 100 % Para 3
is unable to carry out work after 12 months. and Para 4

2) Workers can apply for termination of employment 200% Article 40

because the worker has a prolonged illness or disability Para 2,
due to a work accident and is unable to carry out work 100 % Para 3
after 12 months. and Para 4

16 Article 56 The employer may terminate the employment of his or her 175% Article 40
workers of workers because workers enter retirement age. Para 2,
100 % Para 3
and 100% Para 4
17 Article 57 If an employment relationship between an entrepreneur and 200% Article 40
a worker comes to an end because the worker dies, to the Para 2,
worker’s [legal] heirs shall be given a sum of money. 100 % Para 3
and Para 4

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