Labour and employment—Indonesia—Q&A guide

The following Employment practice note provides comprehensive and up to date legal information covering:

  • Labour and employment—Indonesia—Q&A guide
  • 1. What are the main statutes and regulations relating to employment?
  • 2. Is there any law prohibiting discrimination or harassment in employment? If so, what categories are regulated under the law?
  • 3. What are the primary government agencies or other entities responsible for the enforcement of employment statutes and regulations?
  • 4. Is there any legislation mandating or allowing the establishment of employees’ representatives in the workplace?
  • 5. What are their powers?
  • 6. Are there any restrictions or prohibitions against background checks on applicants? Does it make a difference if an employer conducts its own checks or hires a third party?
  • 7. Are there any restrictions or prohibitions against requiring a medical examination as a condition of employment?
  • 8. Are there any restrictions or prohibitions against drug and alcohol testing of applicants?
  • 9. Are there any legal requirements to give preference in hiring to, or not to discriminate against, particular people or groups of people?
  • More...

Labour and employment—Indonesia—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to labour and employment in Indonesia published as part of the Lexology Getting the Deal Through series by Law Business Research (published: March 2020).

Authors: SSEK Indonesian Legal Consultants—Fahrul S. Yusuf

1. What are the main statutes and regulations relating to employment?

In general, Indonesian employment law is governed by Law No. 13/2003, dated 25 March 2003, regarding labour (the Labour Law). The two other main statutes are Law No. 2/2004, dated 14 January 2004, regarding industrial relations dispute settlement and Law No. 21/2000, dated 4 August 2000, on labour unions.

In addition to the above laws, employers and employees are also subject to company regulations (or work rules) or a collective labour agreement (CLA), if applicable, as well as the express provisions of the employment agreement between the employer and the employee.

2. Is there any law prohibiting discrimination or harassment in employment? If so, what categories are regulated under the law?

The Labour Law does not regulate protection from harassment for employees. However, the company regulation or collective labour agreement (CLA) will normally contain provisions regarding harassment and its sanction. Indonesian case law also protects workers from harassment. However, the Indonesian court system is based on a civil law system and does not follow the rule of stare decisis (a legal principle under which judges must respect

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