Violations in the implementation of fixed period employment agreement. Can employees get their rights ?

1. SANCTION AGAINST VIOLATION IN
FIXED PERIOD EMPLOYMENT AGREEMENT
Indonesia Labor Law
Dr. Bambang Supriyanto
Noble House, 27th Floor
Jl. Dr. Ide Anak Agung Gde Agung, Kav.E4.2, No 2,
Mega Kuningan
Jakarta 12950 – Indonesia
bambang@schinderlawfirm.com
62-21-29783077 1

2. Two types of employment agreement
Employment under permanent
status:
1. Probationary period of
maximum 3 (three) moths is
allowed. No extension.
2. Period of employment with no
time limitation. Termination
normally due to employee death
or pension age. Employee
resignation is possible.
3. Termination by employer must
be with payment payable to
employee, except termination
for cause or employee
resignation.
4. Termination process is not
simple.
5. Termination may go to Industrial
Relations court. It may take a
year for finalization.
Employment under fixed period:
1. Probationary period of
maximum 3 (three) months is
NOT allowed.
2. Period of employment is limited
to a maximum of total 3 (three)
years.
3. Rigid limitation for jobs that
may be employed under fixed
period of employment.
4. First contract is a maximum of
2 (two) years, can be extended
one time only for a maximum of
1 (one) year.
5. Renewal contract is allowed, for
one time only for a maximum of
2 (two) years. Before doing
renewal, it must be preceded
with break (no work) for more
than 30 (thirty) days. 2

3. Work under fixed period of employment
Fixed period of employment agreement can only be
made for a certain job, which, because of the type
and nature of the job, will finish in a specified time,
that is:
1. Work that is completed for one time or that is
temporary in nature;
2. Work that is estimated to be completed not too
long and only within 3 (three) years at the
maximum;
3. Seasonal work; or
4. Work that is related to a new product, a new
activity or an additional product that is still in the
experimental stage or try-out phase.
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4. Strict prohibition
Fixed period of employment is
strictly prohibited for permanent
job/position
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5. Fixed employment agreement: language,
letter
Fixed employment agreement
must be:
1. In written
2. Written in latine character
3. Written in Indonesia Language
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6. Sanction on violation
Violation on:
1. Types of work employed under fixed period of employment;
2. Temporary job/position but employed under fixed period of
employment; or
3. Procedure for extension or renewal of employment agreement
is not in line with the law; or
4. Fixed period employment agreement is not written, made in
written but not using latine character and/or not using
Indonesia language.
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any violation on the above rules
shall be subject to the following sanction:
status of fixed period of employment is by law
converted into the status of permanent employment

7. What if employer does not care ?
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Your status is employment fixed
period. Contract is finished. OK ?
Yes, but you have
violated the labor law..

8. Employer must be prepared……..
In response to negative attitude of the employer, the following
are actions that the worker may take (based on Indonesia
Labor laws):
1. Worker may do the process of bipartite negotiation with
employer, (if failure, worker may continue) to mediation at
local manpower office, (if failure), worker may proceed to
file a law suit at Industrial Relations Court.
2. At the Court, worker as the plaintiff will claim the
implementation of permanent employment, more claim
may be added that the Court shall impose penalty
(“dwangsom” in Dutch) upon the employer in the form of
certain amount of payment per day for any delay of the
implementation.
3. It is most likely the worker will win the case in the Court.
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9. End of slides
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