VIDI N P

Adjustment on Labor Law

UNDANG-UNDANG CIPTA KERJA
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Outline

CONTRACT EMPLOYMENT - PKWT

REMUNARATION

JAMINAN KEHILANGAN PEKERJAAN

EXPATRIATE
Contract Employment - PKWT
• PP No 35 tahun 2021
“Perjanjian Kerja Waktu Tertentu, Alih Daya, Waktu Kerja dan Waktu Istirahat,
dan Pemutusan Hubungan Kerja”

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Contract Employment - PKWT
Category Before After
Type & period Based on period & completion of work Based on period :
• 1st contract max 2 years At most 5 years, can be extended several times
• Extended 1x max 1 year Ex : every 6 months (9x extension)
• Renewal 1x max 2 years
Based on completion of work :
No maximum period, based on agreed
completion timeline.
Compensation No compensation Length of Service x 1 month salary
for extension 12
Exception for - • Employee passed away
compensation • Expatriate
• Court resolution
• Special case regulated in company policy
Termination by Employees : pay the remaining period amount Employees : pay the remaining period amount
Employees Employer : No Employer : pay compensation
Termination by Employer : pay remaining period amount Employer : pay remaining period amount +
Employer compensation
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Outsourcing

Before After
Type For noncore business process All type of work can be outsourced
Ex : Cleaning Service & Security
Details • Outsourcing company must be incorporated (berbadan hukum)
• Outsourcing employees have to be in contract or permanent status of the outsourcing
company
• There must clause about guarantee of right if the outsourcing company is changed
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Overtime

Before After
Max OT per day 3 hours 4 hours
Max OT per week 14 hours 18 hours
Details - Calculation formula still the same
- Multiplier per hours also still same
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Outline

CONTRACT EMPLOYMENT - PKWT

REMUNARATION

JAMINAN KEHILANGAN PEKERJAAN

EXPATRIATE
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Termination of Employment
Amount of Severance

UANG PISAH

* Goverment remove the 15% of pesangon & UPMK as part of Uang Penggantian Hak that has to be paid
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The Multiplier
Pesangon UPMK
Category
Before After Before After
Merger, acquisition, or separation of company 2 1 1 1
→ termination comes from company
Merger, acquisition, or separation of company 1 0.5 1 1
→ employees do not want to continue the employment
- Efficiency due to company lost 1 0.5 1 1
- Company closed because of lost
- Bankruptcy
Efficiency to prevent company lost 2 1 1 1
Retire 2 1.75 1 1
Long sickness or physical disability because of work accident 2 2 2 1
Breach followed with the issuance of 3 warning letters 1 0.5 1 1
Force Majeure but not causing company close - 0.75 - 1
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Jaminan Kehilangan Pekerjaan (JKP)
• No 37 tahun 2021
“ Penyelenggaraan Program Jaminan Kehilangan Pekerjaan”

Job Loss Guarantee

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Job Loss Guarantee
• Recomposition
• 0.14% from JKK + 0.1% from JKM = 0.24% for JKP
JKK JKM JKN
Risk Level Before After Before After
0.24% from
Very Low Risk 0.24% 0.1% employer
Low Risk 0.54% 0.4%
0.22% from
Medium Risk 0.86% 0.75% 0.3% 0.2% government
High Risk 1.27% 1.13%
Very High Risk 1.74% 1.6% Total 0.46%

Max Cap No No 5 mio

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Job Loss Guarantee
• Benefit for employees :
• Cash 6 months of salary (max 5mio) → can be disburse for 3x
• Information access to job vacancies
• Training
• Not eligible for employees who:
• Tender his/her resignation
• Permanent disabilities
• Retire
• Pass away
• Disbursement of funds
1. After 6 months JKP payment, with 12/24 months of membership
2. 5 years after 1st disbursement
3. 5 years after 2nd disbursement
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Use of Foreign Worker (Expatriate)
• PP No 34 tahun 2021
“Penggunaan Tenaga Kerja Asing”

• Multiple Position Rules

• Employer can employ expatriate who already work for other employer, for
these position :
• Directors or Commissioner