laborlaw13-2003 (english) pdf

7/25/2019 LaborLaw13-2003 (English) PDF

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HOUSE OF REPRESENTATIVE OF THE REPUBLIC OF INDONESIA

LAW OF THE REPUBLIC OF INDONESIA

NUMBER 13 YEAR 2003

ON

MANPOWER

WITH BLESSING OF THE ALMIGHTY GODS

PRESIDENT OF THE REPUBLIC OF INDONESIA,

Considering : a. that national development is executed in the frame of the wholeIndonesia human being development and Indonesia societydevelopment entirely to realize the secured, prosperous and fairsociety, both material as well as spiritual pursuant to the FivePrinciples (Pancasila) and Constitution of The Republic OfIndonesia Year 1945

b. that in the implementation of the national development, manpowerhas the very important role and position as the development targetand perpetrator

c. that in accordance with the manpower role and position/status, it isneeded the manpower development to increase its quality andparticipation in the development and also to make-up manpowerprotection and their family in accordance with the human beingprestige and grades

d. that the protection to the manpower is aimed to guarantee thebasic rights of Worker/Labor and to ensure equality of opportunityand treatment without discrimination on whatever basis in order torealize prosperity of Workers/Labors and their family withoutneglecting the growth of corporate business sector

e. that some laws in manpower areas are considered have beeninappropriate anymore with the manpower demand andrequirements development, therefore it should be revoked and/orwithdrawn.

f. that pursuant to the consideration as meant in letter a, b, c, d, ande it is necessary to form Law on Manpower.

In view of : Article 5 paragraph (1), Article 20 paragraph (2), Article 27 paragraph(2), Article 28, and Article 33 paragraph (1) Constitution of TheRepublic Of Indonesia Year 1945


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With the joint approval between:

HOUSE OF REPRESENTATIVE OF THE REPUBLIC OF INDONESIA AND

THE PRESIDENT OF THE REPUBLIC OF INDONESIA

HAS DECIDED:

To Stipulate : LAW ON MANPOWER

CHAPTER IGENERAL PROVISIONS

Article 1

In this law, meant by:

1 Manpower Affairs are everything related to manpower/labor at the time before,during, and after service period.

2 Manpower is everybody who is capable to conduct work to produce goods and/orservice in order to fulfill own needs and for society.

3 Worker/labor is everybody who works by accepting salary or compensation in otherform.

4 Employer is an individual, entrepreneur, legal entity, or other bodies employingmanpower by paying salary or reward in other form.

5 Entrepreneur is:

a. individual, federation, or legal entity running an own company

b. individual, federation, or legal entity that independently runs other partysbusiness

c. individual, federation, or legal entity in Indonesia representing the company asmeant in letter a and b domiciled outside of the Republic of Indonesia territory.

6 The Company is:

a. each corporate or incorporated business of individual, federation, or legalentity property, either private or public ownership employing worker/labor bypaying salary or reward in other form

b. social and other businesses/efforts, which have management and employother persons by paying salary or reward in other form.

7 Manpower planning is a process of arranging manpower plan systematically takenas reference and basis in arranging policy, strategy, and program implementation ofsustainable manpower development.

8 Manpower information is a combination, series, and analysis of data in the form offigures, which have been processed, text and document, which have certainmeaning and value regarding manpower.


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9 Job Training is overall activity to give, obtain, improve and develop workingcompetency, productivity, discipline, attitude, and working ethos at the certain skilland capability level according to the position qualification and grade.

10 Working competency is working ability of each individual covering knowledge, skill,and working attitude aspects, which are conformed to specified standard.

11 Internship is an integrated part of job training system carried out between thetraining in a training institution and directly worked under tuition and observation ofan instructor or more experienced worker/labor, in course of goods and/or serviceproduction in a company, in the frame of mastering certain expertise or skill.

12 Manpower placement Service is an activity to bring into contact manpower/laborwith employer, so that worker/labor may obtain work that matching with its talent,enthusiasm, and ability and the employer may obtain worker/labor that conforms toits requirements.

13 Expatriate is foreign citizen of visa owner with the purpose of working in Indonesia.

14 Working Agreement is an agreement between worker/labor with employer orentrepreneur containing working conditions, rights, and obligations of the parties.

15 Working Relation is a relation between Employer and Worker/Labor pursuant to theworking agreement having work, salary, and command elements.

16 Industrial relation is a relationship system formed between all perpetrators in thecourse of goods and/or service production consisting of entrepreneur, worker/labor,and government elements relied on the Five Principles values and the Constitutionof The Republic Of Indonesia Year 1945

17 Worker/Labor Union is an organization formed of, by, and for the worker/labor eitherin the company or outside the company, having the character of independent, open,self-supporting, democratic, and hold responsibility to fight for, defend and protectrights and interests of Worker/Labor and also to improve prosperity of Worker/Laborand its family.

18 Bipartite cooperation institution is a communication and consultancy forumconcerning any matters related to industrial relationship in a company which itsmember consist of employer and Worker/Labor union which have been registeredby an institution in charge of manpower or Worker/Labor elements.

19 Tripartite cooperation institution is a communication, deliberation and consultancyforum about problems of manpower which its member consist of organizationemployer, Worker/Labor union and government elements.

20 Companys Regulation is written regulation made by Employer containing workingconditions and companys order/discipline.

21 Joint Working Agreement is an agreement representing the result of negotiationbetween Worker/Labor unions or the Worker/Labor union registered in an institutionin charge of manpower area and employer or some entrepreneurs or employerassociation containing working conditions, rights and obligations of both parties.


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22 Industrial relationship dispute is a different idea resulting conflict between employerand employer alliance with Worker/Labor or Worker/Labor union caused by adispute concerning rights, interest, and employment termination and also disputeamong Worker/Labor union in a company.

23 Strike is Worker/Labor action planned and executed together and/or byWorker/Labor union to stop or slow down work.

24 Lockout is employer action to refuse Worker/Labor entirely or partly to run work.

25 Employment termination is terminating work relationship because of certain matterthat result termination of rights and obligations between Worker/Labor andEmployer.

26 Child is everyone whos under 18 (eighteen) years old.

27 Daytime is the time between at 06.00 up to 18.00

28 1 (one) day is the time for 24 (twenty four) hours.

29 A week is the time for 7 (seven) days.

30 Salary is Worker/Labor rights accepted and expressed in the form of money as acompensation from employer or entrepreneur to Worker/Labor specified and paidaccording to working agreement, arrangement, or law and regulation, includingallowance for Worker/Labor and its family upon works and/or services which haveor will be conducted.

31 Worker/labor prosperity is accomplishment of needs and/or requirements with thecharacter of physical and spiritual, either in or outside working relationship thatdirectly or indirectly heighten working productivity in a healthy and peaceful workingenvironment.

32 Manpower supervision is an activity to supervise and uphold the implementation oflaw and regulation in manpower area.

33 Minister is minister in charge of manpower area.

CHAPTER IIBASIS, PRINCIPLES AND OBJECTIVES

Article 2

Manpower development shall be based on the Five Principles and the Constitution of TheRepublic Of Indonesia Year 1945

Article 3

Manpower development is carried out on the principles of integrity through cross-sectorfunctional coordination of central and regional areas.

Article 4

Manpower development aims to:

a. empowerment and utilize manpower on optimal and humanitarian basis


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b. realize job opportunity distribution and manpower provisions, which are conformedto the requirements of national and regional development

c. give protection to manpower in realizing prosperity; andd. improve prosperity of manpower and its family.

CHAPTER IIITHE SAME OPPORTUNITY AND TREATMENT

Article 5

Each manpower has the same opportunity without discrimination to get work.

Article 6

Each Worker/labor shall be entitled to get the same treatment without discrimination fromEmployer.

CHAPTER IVMANPOWER PLANNING AND INFORMATION

Article 7

(1) In frame of manpower development, the government has stipulated policy andarranges manpower planning.

(2) Manpower Planning covers:a. macro manpower planning; andb. micro manpower planning

(3) In arranging policy, strategy, and implementation of sustainable manpowerdevelopment program, the government has to take guidance to the manpowerplanning as meant in paragraph (1).

Article 8

(1) Manpower Planning shall be arranged on the basis of manpower information amongother covering:

a. resident and manpower;

b. job opportunity;

c. job training including working competency;

d. manpower productivity;

e. industrial relation;

f. condition of working environment;

g. manpower remunerating and prosperity; and.

h. manpower social security.


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(2) Manpower Information as meant in paragraph (1), shall be obtained from all relatedparties, both governmental institution and private sectors.

(3) Provisions concerning procedures to get manpower information and compilation aswell as manpower planning implementation as meant in paragraph (1) are regulatedbased on Government Regulations.

CHAPTER VJOB TRAINING

Article 9

Job training shall be carried out and directed to supply, improve and develop workingcompetency in order to improve ability, productivity, and prosperity.

Article 10

(1) Job training shall be carried out by observing requirement of job market andbusiness sector, either in or outside working relationship.

(2) Job training is carried out pursuant to the training program referring to the workingcompetency standard.

(3) Job training may be conducted gradually.

(4) Provisions concerning procedures of stipulating of working competency standard asmeant in paragraph (2) shall be regulated based on Decree of the Minister.

Article 11

Each worker is entitled to get and/or improve and/or develop working competencyaccording to talent, enthusiasm, and ability through Job training.

Article 12

(1) Employer shall be responsible on the development and/or improvement of in controlof its Working competency through job training.

(2) Improvement and/or development of competency as meant in paragraph (1) areobliged to Employer fulfilling the conditions regulated based on Decree of theMinister.

(3) Each Worker/labor shall have the same opportunity to joint with the job training inaccordance with its duty area.

Article 13

(1) Job training shall be carried out by government and/or private training institutions.

(2) Job training may be carried out in the training place or workplace.

(3) Government job training Institution as meant in paragraph (1) in carrying out jobtraining may cooperate with private sector.


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Article 14

(1) Private job training institution may be in the form of Indonesia legal entity orindividual.

(2) Private job training institution as meant in paragraph (1) must obtain permit orregister to the institution in charge of manpower area in the regency/municipalitylevel.

(3) Job training institution organized by government institution shall register its activitiesto the institution in charge of manpower area in the regency/municipality level.

(4) Provisions concerning permit and registration procedures of job training institutionas meant in paragraph (2) and paragraph (3) shall be regulated based on Decree ofthe Minister.

Article 15

The organizers of job training is obliged to fulfill conditions:

a. availability of trainer/staffs;b. existence of curriculum matching with training level;c. availability of facilities and infrastructures of job training; andd. availability of fund to continuity of job training activities.

Article 16

(1) Private job training institutions, which have obtained permit and the government jobtraining institution, which have been registered, may obtain accreditation fromaccreditation institution.

(2) Accreditation Institution as meant in paragraph (1) shall be independent consistingof society and government element specified by Decree of the Minister.

(3) Organization and administration of accreditation institution as meant in paragraph(2) shall be regulated based on Decree of the Minister.

Article 17

(1) Institution in charge of manpower area in regency/city level may temporarily stopthe implementation of job training, if its implementation in fact:

a. is not conformed to the job training direction as meant in Article 9; and/orb. do not fulfill the conditions as meant in Article 15

(2) Temporary stoppage on the implementation of job training as meant in paragraph(1), shall be accompanied by remedial suggestion and reasons and it shall beeffective at the longest for 6 (six) months.

(3) Temporary stoppage on the implementation of job training may only be imposed tothe training program which have not meet the requirements as meant in Article 9and Article 15

(4) In case the job training organizer, during 6 (six) months period do not fulfill andcarry out the remedial suggestion as meant in paragraph (2) shall subject tosanction of terminating the training program.


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(5) Job training Organizers, who do not adhere and remain execute the job trainingprogram which have been stopped as meant in paragraph (4) shall subject tosanction of revoking permit and cancellation of registration of training organizer.

(6) Provisions concerning procedures of temporary stoppage, termination, revokingpermits and cancellation of registration shall be regulated based on Decree of theMinister.

Article 18

(1) Manpower is entitled to get recognition of working competency after following jobtraining organized by governmental job training institution, private job traininginstitution, or on-site training.

(2) Recognition of working competency as meant in paragraph (1) is carried outthrough working competency certification.

(3) Working competency Certification as meant in paragraph (2) may also be followedby experienced manpower.

(4) To carry out working competency certification, it shall be established anindependent prophecy certification national board.

(5) Forming the independent prophecy certification national board as meant inparagraph (4) shall be regulated based on Governmental Regulation.

Article 19

Job training for disabled people shall be executed by observing type, degree of handicap,and ability of the disabled people.

Article 20

(1) To support of improving job training in the frame of manpower development, it shallbe developed a national job training system representing the job trainingimplementation reference for all sectors and/or areas.

(2) Provisions concerning form, mechanism, and institution of the national job trainingsystem as meant in paragraph (1) shall be regulated based on GovernmentalRegulation.

Article 21

Job training may be carried out with internship system.

Article 22

(1) Internship shall be executed on the basis of internship agreement betweenparticipant and employer made in writing.

(2) Internship Agreement as meant in paragraph (1), shall contain at least theprovisions of participant and employer rights and obligations as well as internshipperiod.


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(3) Internship that is carried out without through internship agreement as meant inparagraph (1), shall be assumed illegal and the participant status shall becomeWorker/Labor of the company.

Article 23

Manpower who has joined with internship program shall be entitled on the recognition ofworking competency qualification from the certification institution or the company.

Article 24

Internship may be carried out in own company or at the job-training place, or othercompany, either in or outside Indonesia territory.

Article 25

(1) Internship conducted outside Indonesia must have the permit from the Minister orthe appointed functionary.

(2) To obtain the permit as meant in paragraph (1), internship organizer has to be in theform of Indonesia legal entity in accordance with the prevailing law and regulation.

(3) Provisions concerning internship permit procedures outside Indonesia as meant inparagraph (1) and paragraph (2), shall be regulated based on Decree of theMinister.

Article 26

(1) Organizing internship outside Indonesia has to pay attention:

a. Indonesian national prestige and standing;b. mastering higher level competency; andc. protection and prosperity of internship participant, including performing their

religious service.

(2) Minister or the appointed functionary may stop internship implementation outsideIndonesia if its implementation is not conformed to the provisions as meant inparagraph (1).

Article 27

(1) Minister may require the company fulfilling the conditions to perform internshipprogram.

(2) In specifying the conditions as meant in paragraph (1), the Minister have to payattention on the importance of the company, society, and nation.

Article 28

(1) To give consideration and suggestion in stipulating policy and also to conductcoordination of job training and internship shall be formed a coordination institutionof national job training.

(2) Establishment, membership, and administration of job training coordinationinstitution as meant in paragraph (1), shall be regulated based on PresidentialDecree.


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Article 29

(1) Central Government and/or Local Government shall conduct guidance on the jobtraining and internship.

(2) Guidance of job training and internship are directed toward making-up relevancy,quality and efficiency of organizing job training and productivity.

(3) Making-Up productivity as meant in paragraph (2), shall be conducted throughproductive cultural development, working ethos, technology, and efficiency ofeconomic activity, in order to realize national productivity.

Article 30

(1) To increase productivity as meant in Article 29 paragraph (2) it shall be formed anational productivity institution.

(2) Productivity Institution as meant in paragraph (1) shall be in the form of institutionalnetwork of productivity improvement service, having the character of cross sectorsor areas.

(3) Establishment, membership and administration of national productivity institution asmeant in paragraph (1), shall be regulated based on Presidential Decree.

CHAPTER VIMANPOWER PLACEMENT

Article 31

Each manpower has the same opportunities and rights to choose, get or move work andobtain appropriate income in the home country or abroad.

Article 32

(1) Manpower placement shall be carried out pursuant to open, free, objective, fair andwithout discrimination principles.

(2) Manpower placement is directed to place manpower on the correct positionaccording to expertise, skill, talent, enthusiasm, and ability by observing the grade,prestige, human rights, and legal protection.

(3) Manpower placement shall be carried out by observing equalizing job opportunityand manpower provisions/supply in accordance with the requirement of nationaland regional programs.

Article 33

Manpower placement consists of:a. Manpower placement in the home country; andb. Manpower placement abroad.

Article 34

Provisions concerning Manpower placement abroad as meant in Article 33 letter b shallbe regulated based on the law.


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Article 35

(1) Employer who need manpower may recruit by itself the required manpower orthrough the manpower placement agent.

(2) Manpower placement agent as meant in paragraph (1) is obliged to give protectionsince the recruitment until the manpower is placed

(3) Employer as meant in paragraph (1) in employing manpower is obliged to giveprotection covering prosperity, safety, and good health both physical and mental ofthe manpower.

Article 36

(1) Manpower placement by an agent as meant in Article 35 paragraph (1) shall beconducted by providing manpower placement services.

(2) Manpower placement services as meant in paragraph (1) shall have character ofintegrated in a Manpower placement system covering elements:a. Job seeker;b. vacancy;c. working market information;d. inter work mechanism; ande. Manpower placement institution.

(3) Manpower placement system elements as meant in paragraph (2) may be carriedout separately addressed to realize the manpower placement.

Article 37

(1) Manpower placement agent as meant in Article 35 paragraph (1) consist of:

a. government institution in manpower area; andb. incorporated private institution.

(2) Private manpower placement institution as meant in paragraph (1) b letter in theimplementation of its service of manpower placement must have written permit fromthe Minister or appointed functionary.

Article 38

(1) Manpower placement agent as meant in Article 37 paragraph (1) letter a, isprohibited to collect placement salary, either directly or indirectly, some or overall tomanpower or manpower users.

(2) Private manpower placement institution as meant in Article 37 paragraph (1) letterb, may only collect manpower placement salary from manpower users and frommanpower with certain position.

(3) Group and position as meant in paragraph (2) shall be specified pursuant to Decreeof the Minister.


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CHAPTER VIIEXPANSION OF JOB OPPORTUNITY

Article 39

(1) Government is responsible to strive expansion of job opportunity either in or outsideworking relationship.

(2) Government and society shall jointly strive expansion of job opportunity either in oroutside working relationship.

(3) All government policies both in central and local levels in each sector shall bedirected to realize the expansion of job opportunity either in or outside workingrelationship.

(4) Financial institution of banking and non banking and business sector are required toassist and give amenity for each society activity that may create or developexpansion of job opportunities.

Article 40

(1) Expansion of job opportunity outside working relationship shall be conductedthrough creating productive and continuation activities by utilizing natural resourcespotency, human resources and effective technology.

(2) Creating expansion of job opportunity as meant in paragraph (1) is carried out byforming and guiding self-supporting manpower, applying manpower intensivesystem, effective technology application and utilization of voluntary manpower orother pattern that may support creating expansion of job opportunity.

Article 41

(1) Government shall specify policy of manpower and expansion of job opportunity.

(2) Government and society shall jointly supervise the policy implementation as meantin paragraph (1).

(3) In the implementation of the duties as meant in paragraph (2), it may be establishedcoordinating body which have government and society elements membership.

(4) Provisions concerning expansion of job opportunity, and establishing coordinatingbody as meant in Article 39, Article 40, and paragraph (3) of this Article shall beregulated based on Government Regulation.

CHAPTER VIIIEXPATRIATE RECRUITMENT

Article 42

(1) Each employer employing expatriate must have written permit from the Minister orthe appointed functionary.

(2) Individual employer is prohibited to employ expatriate.

(3) Obligation to have permit as meant in paragraph (1), shall not be applicable forforeign state delegation hiring expatriate as diplomatic and consular officers.


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(4) Expatriates may be employed in Indonesia only in the working relation for certainposition and certain time.

(5) Provisions concerning certain position and certain time as meant in paragraph (4)shall be specified based on Decree of the Minister.

(6) Expatriate as meant in paragraph (4) whose his/her service period expired andcould not be extended may be replaced by other expatriates.

Article 43

(1) Employer using expatriate must have expatriate usage plan, which has been ratifiedby the Minister or appointed functionary.

(2) Expatriate usage Plan as meant in paragraph (1) shall at least contain informationof:

a. reason of expatriate usage;b. position and/or status/capacity of expatriate in the companys organization

structure.c. period of expatriate usage; andd. appointment of Indonesia citizen as expatriate accompanying manpower to be

employed.

(3) Provision as meant in paragraph (1) shall not be applicable for governmentalinstitution, international body and foreign state delegation.

(4) Provisions concerning legalization procedures of expatriate usage plan shall beregulated based on Decree of the Minister.

Article 44

(1) Employer of expatriate is obliged to adhere the prevailing provisions concerningcompetency standard and position.

(2) Provisions concerning competency standard and position as meant in paragraph (1)shall be regulated based on Decree of the Minister.

Article 45

(1) Employer of expatriate is obliged to:

a. appoints Indonesian manpower as expatriate accompanying staff who isemployed for technology and expertise transfer from the expatriate; and

b. conducts job training and education to Indonesian manpower as meant inletter a that is conformed to the position qualification occupied by expatriate.

(2) Provisions as meant in paragraph (1) shall not be applicable to expatriate occupyingboard of directors and/or board of commissioners positions.

Article 46

(1) Expatriate is prohibited to occupy the position managing personnel and/or certainpositions.


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(2) Certain Position as meant in paragraph (1) shall be regulated based on Decree ofthe Minister

Article 47

(1) Employer is obliged to pay for compensation to each hired expatriate.

(2) Obligation to pay for compensation as meant in paragraph (1) shall not beapplicable to governmental institution, delegation of foreign state, internationalbodies, social institution, religious institutions, and certain positions in educationinstitution.

(3) Provisions concerning certain position in education institution as meant inparagraph (2) shall be regulated based on Decree of the Minister.

(4) Provisions regarding the compensation and its use shall be regulated based onGovernment Regulation.

Article 48

Employer employing expatriate is obliged to return the expatriate to his/her origin countryafter its working relationship is ended.

Article 49

Provisions concerning expatriate usage and implementation of education and training ofaccompanying manpower shall be regulated based on Presidential Decree.

CHAPTER IXWORKING RELATION

Article 50

Working relation shall occur due to Working Agreement between Employer andWorker/Labor.

Article 51

(1) Working Agreement shall be made in writing or oral.

(2) Working Agreement qualify in writing shall be carried out according to the prevailinglaw and regulation.

Article 52

(1) Working Agreement shall be made on the basis of:

a. agreement of both parties;b. efficiency or ability to conduct legal action;c. existence of agreed job/work; andd. the agreed job/work does not contrary with public orderliness, ethics and

prevailing law and regulation.

(2) Working Agreement entered by the parties which is contrary to the provisions asmeant in paragraph (1) letter a and b may be canceled.


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(3) Working Agreement entered by the parties, which are contrary against theprovisions as meant in paragraph (1) letter c, and d shall be void by law.

Article 53

Any things and/or expenses needed for the implementation of drawing up Working Agreement shall be executed by and become responsibility of the Employer.

Article 54

(1) Working Agreement made in writing shall at least contain:

a. name and address of company and business type;b. name, gender, age and address of Worker/Labor;c. type or position of work;d. work place;e. amount of salary and procedures of payment;f. working conditions containing employer and Worker/Labor rights and

obligationsg. commencement and effective period of Working Agreement;h. place and date of Working Agreement; andi. signature of the parties in the Working Agreement.

(2) Provisions in Working Agreement as meant in paragraph (1) letter e and f, shall notcontrary to companys regulation, Joint Working Agreement, and the prevailing lawand regulation.

(3) Working Agreement as meant in paragraph (1) shall be made at least in 2 (double),with the same legal force, and each Worker and Employer shall get 1 (one) Working

Agreement.

Article 55

Working Agreement shall not be revoked and/or altered, except on the approval of theparties.

Article 56

(1) Working Agreement shall be made for definite or indefinite time.

(2) Definite Working Agreement as meant in paragraph (1) shall be based on:

a. period/term; or.b. completing certain work.

Article 57

(1) Definite Working Agreement shall be made in writing and have to use Latin letterand Indonesian language.

(2) Definite Working Agreement, which is made unwritten, that is contrary to theprovision as meant in paragraph (1) shall be expressed as Indefinite Working

Agreement.


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(3) In case of Working Agreement is made in foreign and Indonesian Languages, ifthen there is difference of interpretation, then the prevailing Working Agreement isin Indonesian language.

Article 58

(1) Definite Working Agreement shall not require the existence of working probation.

(2) In case of required probation work in the Working Agreement as meant inparagraph (1), the required working probation shall be void by law.

Article 59

(1) Definite Working Agreement may only be made for certain work which according tothe type and nature or activity of its work will finish in certain time, that is:

a. the work, which is once completed or temporary work

b. the work that is estimated completed in a short time and at longest 3 (three)years

c. the work having character of seasonal; or

d. the work related to new product, new activity, or additional product which stillon experiment or probe.

(2) Definite Working Agreement shall not be conducted for the work having characterpermanent.

(3) Definite Working Agreement may be extended or renewed.

(4) Definite Working Agreement which is based on certain period may be held for at thelongest 2 (two) years and may only be extended 1 (once) period at the longest 1(one) year.

(5) Employer who want to extend the Definite Working Agreement, at longest 7 (seven)days before the expiration of the Definite Working Agreement has advised itsintention in writing to Worker/Labor.

(6) Renewal of Definite Working Agreement may only be performed after exceeding thegrace period of 30 (thirty) days as of the end of the old Definite Working Agreement,the renewal of this Definite Working Agreement shall only be conducted by 1 (once)and at the longest for 2 (two) years.

(7) Definite Working Agreement, which does not meet the provisions, as meant inparagraph (1), paragraph (2), paragraph (4), paragraph (5), and paragraph (6) thenfor the shake of law shall become Indefinite Working Agreement.

(8) Any matters, which have not yet been arranged in this Article, will be arrangedfurthermore in the Decree of the Minister.

Article 60

(1) Indefinite Working Agreement may require probation work at the longest for 3(three) months.


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(2) In the period of probation work as meant in paragraph (1), Employer is prohibited topay the salary under the prevailing minimum wage standard.

Article 61

(1) Working Agreement shall end if:

a. Worker passed away;b. ending Working Agreement period;c. existence of justice decision and/or decision or stipulation of industrial

relationship dispute institution which have had permanent legal force; ord. existence of certain occurrence or situation stated in Working Agreement,

companys regulations, or joint working agreement that may causetermination of the working relationship.

(2) Working Agreement shall not end because of Employer death or transferring rightson the company caused by the sale, endowment, or donation.

(3) In the case of transfer of the company then Worker/Labors rights shall become newEmployer responsibility, unless determined otherwise in the agreement of transferof which without prejudicing Worker/Labors rights.

(4) In the case of Employer or individual passed away, the Employer heirs mayterminate Working Agreement after conducting negotiation with the Worker/Labor.

(5) In the case of Worker/Labor passed away, Worker/Labor heirs is entitled to get itsrights according to the prevailing law and regulation or the rights which have beenregulated in the Working Agreement, companys regulations, or Joint Working

Agreement.

Article 62

In case one of the parties terminate the working relation before the period as set in theDefinite Working Agreement, or termination of working relation not because of theprovisions as meant in Article 61 paragraph (1), the party terminating working relationshipis obliged to pay compensation to other party equal to Worker/Labor salary/wage up tothe expiration of Working Agreement period.

Article 63

(1) In the case of Indefinite Working Agreement made verbally, then Employer isobliged to make letter of assignment to the Worker/ Labor in concerned.

(2) Letter of assignment as meant in paragraph (1), shall at least contain information:

a. Worker/Labors name and address;b. date of starting to work;c. working type; andd. amount of salary/salary.

Article 64

The company may subcontract some of work implementation to other company through aworking contract agreement or provisions of Worker/Labor service in writing.


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Article 65

(1) Transferring some of work implementation to the other company shall be carried outthrough a written working contract agreement.

(2) The work, which may be transferred to other company as, meant in paragraph (1)have to fulfill the following conditions:

a. conducted separately from the main activity;b. conducted under direct or indirect order from employerc. representing activity supporting the company as a whole; andd. does not directly inflict the production process.

(3) Other company as meant in paragraph (1) have to in the form of legal entity.

(4) Work protection and conditions for Worker/Labor at other company as meant inparagraph (2) shall be at least equal to the work protection and conditions at thecompany of work provider or according to the prevailing law and regulation.

(5) Changes and/or additions of the conditions as meant in paragraph (2) shall befurthermore regulated based on Decree of the Minister.

(6) Working relation in the work implementation as meant in paragraph (1) shall beregulated based on Working Agreement in writing between other company and theemployed Worker/labor.

(7) Working relation as meant in paragraph (6) may be based to Indefinite Working Agreement or Definite Working Agreement if it has fulfilled the conditions as meantin Article 59

(8) In the case of provision as meant in paragraph (2), and paragraph (3), are notfulfilled, then for the shake of working relation status of Worker/Labor with thecontractor shall changed to be the working relation of Worker/Labor with theEmployer.

(9) In the case of working relationship is changed over to the Employer agent as meantin paragraph (8), then the working relation of Worker/Labor with the employer shallbecome according to the working relation as meant in paragraph (7).

Article 66

(1) Worker/labor of the employer agent shall not be used by employer to carry out basicactivity or activity directly corresponding with production process, except for thesupporting service activity or activity which does not directly correlated to theproduction process.

(2) Worker/Labor agent for the supporting service activity or activity which are notdirectly correlated to production process have to meet the standard as follows:

a. existence of working relation between Worker/labor and the Worker/Laborservice agent.

b. Working Agreement which is effective for working relation as meant in letter ais Definite Working Agreement which fulfill conditions as meant in Article 59and/or Indefinite Working Agreement which is made in writing and signed byboth parties


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c. protection of wage and prosperity, working conditions, and dispute arising outbecome responsibility the Worker/Labor service agent; and

d. agreement between the Worker/labor service users and other company actingas the Worker/Labor service agent in writing and must contain the Article asmeant in this law.

(3) Worker/Labor service agent shall be in the form of incorporated business and havethe permit/license from the institution in charge of manpower area.

(4) In the case of provision as meant in paragraph (1), paragraph (2) letter a, b letter,and d and also paragraph (3) have not been fulfilled, then for the shake of workingrelation status between Worker/labor and the Worker/Labor service agent shallchange to be working relationship between Worker/labor and the employer agent.

CHAPTER XPROTECTION, REMUNERATING, AND PROSPERITY

Part of OneProtection.

Section 1Disabled People

Article 67

(1) Employer hiring disabled people manpower is obliged to give protection inaccordance with its type and degree.

(2) Granting protection as meant in paragraph (1) shall be carried out according to theprevailing law and regulation.

Section 2Child

Article 68

Employer is prohibited to employ children.

Article 69

(1) Provisions as meant in Article 68 may be exempted for a child whose old between13 (thirteen) years up to 15 (fifteen) years to conduct a soft job as long as do notbother the physical, mental, and social growth and health.

(2) Entrepreneur employing child in a soft job as meant in paragraph (1) have to fulfillthe conditions:

a. written permit from the parents or guardian;b. Working Agreement between entrepreneur and parents or guardianc. maximum working hour for 3 (three) hours;d. conducted in the day time and does not disturb school timee. working safety and health;f. existence of clear working relationship; andg. accepting salary pursuant to the prevailing provisions.


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(3) Provisions as meant in paragraph (2) letter a, b, g and f are exempted for childrenemployed in family business.

Article 70

(1) Child may work at a work place representing a part of education or trainingcurriculum ratified by the official functionary.

(2) Child as meant in paragraph (1) shall least 14 (fourteen) years old.

(3) The work as meant in paragraph (1) may be conducted on condition that:

a. is given clear instruction about way of work implementation and tuition as wellas supervision in carrying out the work; and

b. given protection of working safety and health.

Article 71

(1) Child may conduct work to develop its talent and interest/enthusiasm.

(2) Entrepreneur employing child as meant in paragraph (1) is obliged to meet thecondition:

a. under direct supervision of parents or guardian;b. working at longest for 3 (three) hours a day; andc. working environment and condition does not disturb physical, spirit, social

growth and school time.

(3) Provisions concerning laboring child to develop skill/enthusiasm and talent asmeant in paragraph (1) and paragraph (2) shall be regulated based on Decree ofthe Minister.

Article 72

In the case of child employed together with adult Worker/Labor, then the child workplacehas to be separated from the adult Worker/Labor workplace.

Article 73

Child shall be assumed to have work when he/she is available at the workplace, unless itmay be proved otherwise.

Article 74

(1) Whoever is prohibited to employ and involve child to ugly works.

(2) Ugly Works as meant in paragraph (1) cover:

a. all kinds of works in the form of slavery or of a kindb. all works exploiting, providing, or offering child for prostitution, pornography

production, show of porno, or gamblingc. all works exploiting, providing, or entangling child for production and trade of

liquor, narcotic, psychotropic, and other addictive substance; and/ord. all works endangering health, safety, or moral of child.


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(3) Type of works endangering health, safety, or moral of child as meant in paragraph(2) letter d shall be regulated based on Decree of the Minister.

Article 75

(1) Government is obliged to control laboring child outside working relationship.

(2) The control as meant in paragraph (1) shall be regulated based on GovernmentRegulation.

Section 3Female

Article 76

(1) Female worker/labor whose less than 18 (eighteen) years old is prohibited to beemployed between 23.00 up to 07.00

(2) Employer is prohibited to employ pregnant woman Worker/labor in which accordingto doctor information is danger for its obstetrical safety and health and herself if shework between 23.00 up to 07.00

(3) Employer employing female worker/labor between 23.00 up to 07.00 is obliged to:

a. give nutritious food and beverage; andb. take care security and ethics during work.

(4) Employer is obliged to provide pick and delivery transportation for femaleworker/labor to the work between 23.00 up to 05.00

(5) Provisions as meant in paragraph (3) and paragraph (4) shall be regulated basedon Decree of the Minister.

Section 4Working hour

Article 77

(1) Each Employer is obliged to execute the working hour provisions.

(2) The working hour as meant in paragraph (1) covers:

a. 7 (seven) hours a day and 40 (forty) hours a week for 6 (six) workdays aweek; or

b. 8 (eight) hours a day and 40 (forty) hours a week for 5 (five) workdays aweek.

(3) Provisions on working hour as meant in paragraph (2) shall not be applicable forcertain business or working sectors.

(4) Provisions concerning working hour in the certain business and work sectors asmeant in paragraph (3) shall be regulated based on Decree of the Minister.


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Article 78

(1) Employer who employ Worker/Labor exceeding working hour as meant in Article 77paragraph (2) have to meet the requirements:

a. there is approval of the Worker/ Labor concerned; and.b. overtime work may only be conducted at the most 3 (three) hours a day and

14 (fourteen) hours a week.

(2) Employer who employs Worker/Labor exceeding working hour as meant inparagraph (1) is obliged to pay for overtime work.

(3) Provisions on overtime work as meant in paragraph (1) letter b shall not beapplicable for certain business and work sectors.

(4) Provisions concerning overtime work hours and overtime work wage as meant inparagraph (2) and paragraph (3) shall be regulated based on Decree of theMinister.

Article 79

(1) Employer is obliged to give rest time and leave to Worker/Labor.

(2) Rest time and leave as meant in paragraph (1) shall cover:

a. rest between working hour, at least half hour after working for 4 (four) hoursconsecutively and the rest time shall not included into office hours

b. weekly rest 1 (one) day for 6 (six) workdays in a week or 2 (two) days for 5(five) workdays a week

c. annual leave, at least 12 (twelve) workdays after the Worker/Labor work for12 (twelve) months consecutively; and

d. long rest at least 2 (two) months and taken in the seventh and eighth yearsand respectively 1 (one) month for Worker/Labor who have worked for 6 (six)years consecutively at the same company provided that the Worker/Laborhave no right anymore toward annual rest in 2 (two) current year and further itshall be valid for each multiplication service for 6 (six) years.

(3) The implementation of annual rest time as meant in paragraph (2) letter c shall beregulated based on in Working Agreement, companys regulations, or Joint Working

Agreement.

(4) Long rest rights as meant in paragraph (2) letter d shall only be valid forWorker/Labor who work at certain company.

(5) Certain company as meant in paragraph (4) shall be regulated based on Decree ofthe Minister.

Article 80

Employer is obliged to give sufficient opportunity to Worker/Labor to perform religiousservice obliged by its religion.


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Article 81

(1) Female worker/labor whose in menstruation period get pain and advise it toEmployer, is not obliged to work at the first and second days of menstruation.

(2) Implementation of the provision as meant in paragraph (1) shall be regulated basedon Working Agreement, companys regulations, or Joint Working Agreement.

Article 82

(1) Female worker/labor is entitled to get rest for 1,5 (one half) month before givingbirth and 1,5 (one half) month after giving birth according to estimation of midwife orobstetrician.

(2) Female worker/labor experiencing miscarriage shall be entitled to get rest 1,5 (onehalf) month or according to the certificate of obstetrician or midwife.

Article 83

Female Worker/labor who still give suckling to her child have to be given opportunityappropriately to suckle her child if it must be done during work.

Article 84

Each Worker/labor using the rest time rights as meant in Article 79 paragraph (2) letter b,c, and d, Article 80, and Article 82 shall be entitled to get full salary.

Article 85

(1) Worker/labor is not obliged to work on the formal holidays.

(2) Employer may employ Worker/Labor to work on the formal holidays if the type andnature of work have to be carried out or run continuously or in other situationpursuant to agreement between Worker/Labor and Employer.

(3) Employer who employs Worker/Labor on official holiday as meant in paragraph (2)is obliged to pay for overtime work.

(4) Provisions concerning types and natures of works as meant in paragraph (2) shallbe regulated based on Decree of the Minister.

Section 5Working Safety And Health

Article 86

(1) Each Worker/labor shall have right to get protection to:

a. working safety and health;b. ethics and moral; andc. appropriate treatment, which are conformed to human being prestige and

grade as well as religion values.

(2) To protect Worker/Labors safety in order to realize optimum work productivity shallbe carried out the working safety and health effort.


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(4) Component and implementation of attainment stage of appropriate living needs asmeant in paragraph (2) shall be regulated based on Decree of the Minister.

Article 90

(1) Employer is prohibited to pay lower salary than the minimum wage as meant in Article 89

(2) To Employer who is unable to pay for minimum wage as meant in Article 89 may beconducted deferment.

(3) Procedures of deferment as meant in paragraph (2) shall be regulated based on theDecree of the Minister.

Article 91

(1) Regulation on remunerating specified based on agreement between Employer andWorker/labor or Worker/Labor union shall not be lower than the provision ofremunerating specified by the prevailing law and regulation.

(2) In the case of agreement as meant in paragraph (1) is lower or contrary to the lawand regulation, the agreement shall be void for the shake of law, and Employer isobliged to pay for Worker/Labor salary according to the prevailing law andregulations.

Article 92

(1) Employer shall arrange wage/salary scale and structure by observing group,position, service period, education, and competency.

(2) Employer shall review the wage periodically by observing companys capability andproductivity.

(3) Provisions concerning wage/salary scale and structure as meant in paragraph (1)shall be regulated based on the Decree of the Minister.

Article 93

(1) Wage is not paid if Worker/Labor does not work.

(2) Provisions as meant in paragraph (1) shall not be applicable, and Employer isobliged to pay for the wage if:

a. Worker/labor is ill including ill woman Worker/Labor on the first and seconddays of her menstruation so that could not carry out her work

b. Worker/Labor does not work because the Worker/Labor get married, marry,circumcise, baptize his/her child, his wife giving-birth or miscarriage, wife orhusband or child or daughter/son in law or parent or parent in law or familymember in one house pass away

c. Worker/Labor could not work because of performing duty of the stated. Worker/Labor could not work because of performing mandatory religious

service of its religione. Worker/Labor has standby to conduct work that has been agreed but

Employer does not employ him/her, either due to its own mistake or due toobstacles, which ought to be avoided by Employer

f. Worker/Labor takes his/her rest rights;


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g. Worker/labor executes duty of Worker/Labor union on approval Employer;and

h. Worker/Labor perform his/her educational duty from the company.

(3) Salary/wage paid to ill Worker/Labor as meant in paragraph (2) letter a are asfollows:

a. for the first 4 (four) months, paid 100% (one hundred percent) of the salaryb. for the second 4 (four) months, paid by 75% (seventy five percent) of the

salaryc. for the third 4 (four) months, paid by 50% (fifty percent) of the salary; andd. for further months, paid by 25% (twenty five percent) of the salary before the

Employer exercises employment termination.

(4) Salary/wages paid to a Worker/Labor who does not enter to work as meant inparagraph (2) letter b are as follows:

a. Worker/labor married, paid for 3 (three) daysb. his/her child gets married, paid for 2 (two) days;c. circumcising his/her child, paid for 2 (two) daysd. baptizing his/her child, paid for 2 (two) days;e. wife is giving-birth or miscarriage, paid for 2 (two) daysf. husband/wife, parents/parent in law or child or daughter/son in law pass

away, paid for 2 (two) days; andg. family member in one house pass away, paid for 1 (day one).

(5) Regulations on the implementation of provisions as meant in paragraph (2) shall bespecified in the Working Agreement, Companys regulation, or Joint workingagreement.

Article 94

In the case of salary component consists of basic salary and fixed allowance then theamount of basic salary shall be at least 75 (seventy five percent) of the amount of basicsalary and fixed allowance.

Article 95

(1) Violation committed by Worker/Labor because of intention or negligence my subjectto penalty/fine.

(2) Employer who intentionally or due to negligence causes the delay in salary paymentshall subject to penalty/fine according to certain percentage of the Worker/Laborsalary.

(3) Government shall regulate the penalty/fine to Employer and Worker/labor, in thepayment of salary.

(4) In case a company is declared liquidated or bankrupt pursuant to the prevailing lawand regulation, then the salary and other rights of the Worker/Labor shall constituteas the debt, which must be, prioritized its payment.


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Article 96

Claim of Salary payment of Worker/Labor and all payments arising out from workingrelationship shall be expired after passing the period of 2 (two) years since the rightsarise.

Article 97

The provisions concerning appropriate income, remunerating policy, appropriate livingrequirements, and protection of remunerating as meant in Article 88, stipulating minimumwage as meant in Article 89, and penalty/fine as meant in Article 95 paragraph (1),paragraph (2) and paragraph (3) shall be regulated based on the GovernmentalRegulation.

Article 98

(1) To give suggestion, consideration and formulating policy of remunerating to bespecified by the government, and also for developing national remunerating systemshall be established Remunerating Council of National, Province, and Regency/citylevel.

(2) Membership of Remunerating Council as meant in paragraph (1) consists ofgovernment elements, employer organization, Worker/Labor unions, universities,and experts.

(3) Membership of Remunerating Council in National level shall be appointed anddismissed by the President, while membership of Remunerating Council ofProvince, Regency/city level shall be appointed and dismissed byGovernor/Regent/Major.

(4) Provisions concerning procedures of establishment, membership composition,procedures of appointment and dismissal of membership, as well as tasks andadministration duty of Remunerating Council as meant in paragraph (1) andparagraph (2), shall be regulated based on the Presidential Decree.

Third PartProsperity

Article 99

(1) Each Worker/labor and his/her family is entitled to get manpower social security.

(2) Manpower Social security as meant in paragraph (1), shall be executed accordingto the prevailing law and regulation.

Article 100

(1) To increase prosperity of Worker/Labor and their family, Employer is obliged toprovide prosperity facilities.

(2) Providing prosperity facilities as meant in paragraph (1), shall be carried out byobserving the Worker/Labor needs and capability of the company.

(3) Provisions concerning criteria and type of prosperity facilities according to theWorker/Labor needs and capability of the company as meant in paragraph (1) andparagraph (2), shall be regulated based on the Governmental Regulation.


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Article 101

(1) To increase Worker/Labors prosperity, it shall be established Worker/Labor co-operative and productive business in the company.

(2) Government, employer, and Worker/Labor or Worker/Labor union shall endeavor togrow up Worker/labor cooperatives and to develop productive business as meant inparagraph (1).

(3) Forming cooperatives as meant in paragraph (1), shall be carried out according tothe prevailing law and regulations.

(4) The efforts to grow up Worker/Labor cooperative as meant in paragraph (2) shall beregulated based on the Governmental Regulation.

CHAPTER XIINDUSTRIAL RELATION

First PartPublic

Article 102

(1) In the implementation of industrial relationship, the government has function tospecify policy, give service, conduct supervision, and take discipline action towardthe violation of manpower law and regulation.

(2) In the implementation of industrial relationship, Worker/Labor and Worker/Laborunion have function to run work according to their obligations, to maintaincleanliness for the shake of production continuity, channeling aspirationdemocratically, developing skill, and its capability as well as to jointly support thecompany and to struggle for the prosperity of members along with their family.

(3) In the implementation of industrial relationship, Employer and its organization shallhave function to create partnership, developing business, expanding jobopportunities, and giving prosperity to Worker/Labor transparently, democratically,and in justice.

Article 103

Industrial Relationship is executed to through:

a. Labor/Worker Union;b. Employer organization;c. Bipartite cooperation institution;d. Tripartite cooperation institution;e. Companys regulation;f. Joint working agreement;g. Manpower law and regulation; and.h. Industrial relationship Dispute Settlement institution.


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Second PartWorker/Labor Union

Article 104

(1) Each Worker/labor is entitled to establish and become member of Worker/Laborunion.

(2) In the implementation of function as meant in Article 102, Worker/Labor Union isentitled to collect and manage finance as well as to accountable for theorganizational finance including strike funds.

(3) Amount and procedures of strike fund collection as meant in paragraph (2) shall bearranged in the articles of association and/or rules of association of theWorker/Labor union.

Third PartEmployer Organization

Article 105

(1) Each Employer is entitled to form and become member of Employer organization.

(2) Provisions concerning Employer organization shall be arranged according to theprevailing law and regulation.

Fourth PartBipartite Cooperation Institution

Article 106

(1) Each company employing 50 (fifty) Workers/Labors or more is obliged to establish aBipartite Cooperation Institution.

(2) The Bipartite Cooperation Institution as meant in paragraph (1) shall function ascommunications and consultancy forum concerning manpower matters in thecompany.

(3) Formation of Bipartite Cooperation Institution membership as meant in paragraph(2) consist of enterprises elements and Worker/Labor appointed democratically torepresent the Worker/Labor interest in the company.

(4) Provisions concerning establishment and procedures of Bipartite CooperationInstitution membership as meant in paragraph (1) and paragraph (3) shall beregulated based on the Decree of the Minister.

Fifth PartTripartite Cooperation Institution

Article 107

(1) Tripartite Cooperation Institution gives consideration, suggestion, and opinion to thegovernment and related parties in arranging policy of trouble-shooting of manpoweraffairs.

(2) Tripartite Cooperation Institution as meant in paragraph (1), consist of:


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a. National, Province, and Regency/city Tripartite Cooperation Institution; andb. Sectoral National, Province, and Regency/city Tripartite Cooperation

Institution.

(3) The Tripartite Cooperation Institution membership consists of governmentalelements, Employer organization, and Worker/Labor unions.

(4) Administration and organizational structure of the Tripartite Cooperation Institutionas meant in paragraph (1) shall be regulated based on the GovernmentalRegulation.

Sixth PartCompanys Regulation

Article 108

a. Employer employing Worker/Labor at least 10 (ten) persons is obliged to makeCompanys regulation which is effective after being ratified by the Minister or theappointed functionary.

b. Obligation to make Companys regulation as meant in paragraph (1) shall not beapplicable to the Company, which has owned Joint working agreement.

Article 109

Companys regulation shall be arranged by and become responsibility of the Employer.

Article 110

(1) Companys regulation shall be arranged by observing consideration and suggestionfrom Worker/Labor representatives in the company.

(2) In case the company has formed a Worker/Labor union then the Worker/Laborrepresentative as meant in paragraph (1) is the management of Worker/Laborunion.

(3) In case in the company has not yet been formed Worker/Labor union, theWorker/Labor representatives as meant in paragraph (1) is the Worker/Laborselected democratically to represent all Worker/Labor interests in the company.

Article 111

(1) Companys regulation shall at least contain:

a. Employers rights and obligations;b. Worker/Labor rights and obligations;c. Working conditions;d. Companys Order; ande. Effective Period of Companys regulation.

(2) Provisions in Companys regulation shall not contrary with the provisions of theprevailing law and regulation.

(3) Effective period of the Companys regulation shall be at the longest for 2 (two) yearsand must be renewed after the expiration of the period.


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(4) During the effective period of the Companys regulation, if the Worker/Labor unionin the company want negotiation of making Joint working agreement, then theEmployer is obliged to respond it.

(5) In the case of negotiation of making Joint working agreement as meant inparagraph (4) does not reach an agreement, then the Companys regulation shallremain be effective until the expiration of the effective period.

Article 112

(1) Legalization of the Companys regulation by Minister or appointed functionary asmeant in Article 108 paragraph (1) should have been given within period at thelongest 30 (thirty) workdays as of receiving the Companys regulation.

(2) If the Companys regulation have conformed to the provisions in Article 111paragraph (1) and paragraph (2), then within period of 30 (thirty) workdays asmeant in paragraph (1) have been passed over and the Companys regulation havenot yet been ratified by the Minister or the appointed functionary, then theCompanys regulation shall be deemed to have got legalization.

(3) In the case of the Companys regulation have not yet met the conditions as meantin Article 111 paragraph (1) and paragraph (2), the Minister or the appointedfunctionary have to advise in writing Employer to remedy the Companys regulation.

(4) Within period at the longest 14 (fourteen) workdays commenced from the date ofnotification accepted by Employer as meant in paragraph (3), Employer is obliged tosubmit again the Companys regulation which have been revised to the Minister orthe appointed functionary.

Article 113

(1) Change of the Companys regulation before the expiration of the effective periodmay only be conducted on the basis of agreement between Employer andWorker/Labor representatives.

(2) The amended Companys regulation as meant in paragraph (1) must obtainedapproval from the Minister or appointed functionary.

Article 114

Employer is obliged to advise and explain the contents as well as to give Companysregulation books or its amendment to the Worker/Labor.

Article 115

Provisions concerning procedures of drafting and legalization of Companys regulationshall be regulated based on the Decree of the Minister.

Seventh PartJoint Working Agreement

Article 116

(1) Joint working agreement shall be entered by Worker/Labor union or someWorker/Labor Union which have been registered at the institution in charge ofmanpower area with an Employer or some Employers.


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(2) Drafting Joint working agreement as meant in paragraph (1) shall be executed uponmutual consensus.

(3) Joint working agreement as meant in paragraph (1) have to be made in writing withLatin letter and using Indonesian language.

(4) In the case of there is Joint working agreement which is made not in Indonesianlanguage, then the Joint working agreement have to be translated into Indonesianlanguage by a sworn translator and the translation shall be assumed pursuant tothe provisions as meant in paragraph (3).

Article 117

In the case of mutual deliberation as meant in Article 116 paragraph (2) does not reachthe agreement, then its settlement shall be conducted through the settlement procedureof industrial relationship dispute.

Article 118

In 1 (one) company shall only be made 1 (one) Joint Working Agreement, which iseffective for all Worker/Labor in the company.

Article 119

(1) In case in a company is only one Worker/Labor Union, then Worker/Labor Union isentitled to represent Worker/Labor in the negotiation of making Joint Working

Agreement with employer if it has the amount of member more than 50% (fiftypercent) of the total number of all Worker/Labor in the company.

(2) In case a company may only have one Worker/Labor Union as meant in paragraph(1) but it does not have the total member more than 50% (fifty percent) of the totalnumber of all Workers/Labors in the company, then the Worker/Labor Union mayrepresent the Worker/Labor in the negotiation with Employer if the Worker/LaborUnion concerned have got support more than 50% (fifty percent) from the total allWorker/Labor in the company by voting

(3) In the case of the support as meant in paragraph (2) is not reached, thenWorker/Labor Union may submit again request for renegotiation of Joint Working

Agreement to the Employer after is passing the period of 6 (six) monthscommenced as from conducting voting by following the procedures as meant inparagraph (2).

Article 120

(1) In case in a company there are more than 1 (one) Worker/Labor union then thosewhich have rights to represent Workers/Labors in the negotiation with Employerwhich its total membership is more than 50% (fifty percent) from all Workers/Laborsin the company.

(2) In case the provision as meant in paragraph (1) could not be fulfilled, then theWorker/Labor Union may conduct coalition so that reaching the number more than50% (fifty percent) of the total Workers/Labors in the company to represent in thenegotiation with Employer.

(3) In the case of the provision as meant in paragraph (1) or paragraph (2) are notfulfilled, then all Worker/Labor Unions shall form a negotiation team which its


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membership is determined proportionally pursuant to the total member of eachWorker/Labor union.

Article 121

Membership of Labor/Worker Union as meant in Article 119 and Article 120 shall beproved by membership identity card.

Article 122

Voting as meant in Article 119 paragraph (2) shall be carried out by a committeeconsisting of Worker/Labor representatives and management of Worker/Labor unionwitnessed by functionary in charge of manpower area and Employer.

Article 123

(1) Effective period of Joint working agreement shall be at the longest 2 (two) years.

(2) Joint working agreement as meant in paragraph (1) may be extended its period atthe longest 1 (one) year pursuant to the written agreement between Employer andWorker/Labor union.

(3) Negotiation of making further Joint working agreement may be started at the fastest3 (three) months before the expiration of Joint Working Agreement which is stilleffective.

(4) In the case of negotiation as meant in paragraph (3) does not reach an agreementthen the prevailing Joint working agreement, shall remain be effective at the longest1 (one) year.

Article 124

(1) Joint working agreement shall contain at least:a. Employer rights and obligations;b. rights and obligations of Worker/Labor union and Worker/Laborc. period and date of going into operation of the Joint working agreement; andd. signatures of Joint Working Agreement parties.

(2) Provisions in the Joint working agreement shall not contrary with the prevailing lawand regulations.

(3) In case the contents of Joint Working Agreement are contrary with the prevailinglaw and regulation as meant in paragraph (2), then the provision, which is contrary,shall be void by law and the prevailing provisions are those in the law andregulation.

Article 125

In the case of both parties agree to conduct change on the Joint working agreement, thenthe change shall constitute as an inseparable part of the current Joint working agreement.

Article 126

(1) Employer, Worker/Labor union and Worker/Labor are obliged to perform theexisting provisions in the Joint working agreement.


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(2) Employer and Worker/Labor union are obliged to advise Joint Working Agreementcontent or its amendment to all Workers/Labors.

(3) Employer has to print and distribute Joint Working Agreement to each Worker/Laboron the expenses of the company.

Article 127

(1) Working Agreement made by Employer and Worker/labor shall not contrary to theJoint working agreement.

(2) In the case of provisions in the Working Agreement as meant in paragraph (1) arecontrary to the Joint working agreement, then provisions in the Working Agreementshall be void for the shake of law and the prevailing provisions are those in the Jointworking agreement.

Article 128

In the case of Working Agreement does not contain regulations arranged in the Jointworking agreement, then the prevailing order are those stated in the Joint workingagreement.

Article 129

(1) Employer is prohibited to alter the Joint Working Agreement and Companysregulation as long as the Company still has Worker/Labor union.

(2) In the case of the company has no more Worker/Labor union and the Joint workingagreement is replaced by the Companys regulation, then the existing provisions inthe Companys regulation shall not lower than the existing provisions in the Jointworking agreement.

Article 130

(1) In the case of Joint working agreement which have been expired will be extended orrenewed and in the company there is only 1 (one) Worker/Labor union, then theextension or renewal of Joint working agreement shall not require the provisions in

Article 119

(2) In the case of Joint working agreement which have been expired will be extended orrenewed and in the company there are more than 1 (one) Worker/Labor union andthe Worker/Labor union that formerly conduct negotiation has no longer pursuant to

Article 120 paragraph (1), then the extension and or renewal of Joint workingagreement conducted by Worker/Labor Union that is its member more than 50%(fifty percent) of the total Workers/Labors in the company together with theWorker/Labor Union making the former Joint working agreement by formingnegotiation team proportionally.

(3) In the case of Joint working agreement which have been expired will be extended orrenewed and in the company there are more than 1 (one) Worker/Labor unions andno Worker/Labor union that has met the provisions of Article 120 paragraph (1),then the extension or renewal of Joint working agreement shall be conductedaccording to the provisions of Article 120 paragraph (2) and paragraph (3).


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Article 131

(1) In the case of federal dissolution of Worker/Labor union or transfer of ownership ofthe company, then the Joint working agreement shall remain be effective until theend of the Joint Working Agreement period.

(2) In the case of companys merger and each company has Joint working agreementthen the valid Joint working agreement is the Joint working agreement that is morebeneficial for Worker/Labor.

(3) In the case of companys merger between the company having Joint Working Agreement and a company which have not yet had Joint working agreement thenthe Joint working agreement shall also be effective to the merged company up tothe end of the Joint Working Agreement period.

Article 132

(1) Joint working agreement shall be effective on the signing date unless determinedotherwise in the Joint working agreement.

(2) Joint working agreement signed by a party arranged Joint working agreement shallbe further registered by the Employer to an institution in charge of manpower area.

Article 133

Provisions concerning conditions as well as procedures of arranging, extension, change,and registration of Joint working agreement shall be regulated based on the Decree of theMinister.

Article 134

In realizing the implementation Worker/Labor and Employers rights and obligations thegovernment is obliged to conduct observation and enforcement of manpower law andregulation.

Article 135

The Implementation of manpower law and regulation in realizing industrial relation shallbecome responsibility of Worker/Labor, Employer, and government.

Part Eighth

Industrial Relationship Dispute Settlement Institution

Section 1Industrial Relation Dispute

Article 136

(1) Industrial relationship dispute settlement must be carried out by Employer andWorker/labor or Worker/Labor union upon mutual deliberation.

(2) In the case of mutual deliberation settlement as meant in paragraph (1) could not bereached, then the Employer and Worker/labor or Worker/Labor union shall settle theindustrial relationship dispute through the settlement procedure of industrialrelationship dispute as regulated by the law.


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Section 2Strike

Article 137

Strike as the basic rights of Worker/Labor and Worker/Labor union shall be conductedlegally, orderly, and peace as the consequences of negotiation failure.

Article 138

(1) Worker/labor and/or Worker/Labor union which want to ask other Worker/Labor tostrike at the time strike taken place shall be conducted without impinging the law.

(2) The Worker/labor asked for a strike as meant in paragraph (1), may fulfill or rejectthe request.

Article 139

Implementation of the strike for Worker/Labor who work for a company serving publicinterest and/or the company which is its activity type endanger the safety of human beingshall be arranged in such a way so that do not disturb public interest and/or endanger thesafety of other persons.

Article 140

(1) At least within period of 7 (seven) workdays before the strike, Worker/Labor andWorker/Labor union are obliged to advise in writing the Employer and institution incharge of local manpower area.

(2) Notification as meant in paragraph (1) shall at least contain:

a. time (day, date, and hours) of starting and terminating strikeb. place of strike;c. causes and reasons why have to conduct strike; andd. signature of chief and secretary and/or each chief and secretary of

Worker/Labor union as the principal of strike.

(3) In the case of strike will be conducted by Worker/Labor which do not becomemember of Worker/Labor union, then the notification as meant in paragraph (2)shall be signed by representation of Worker/Labor appointed as coordinator orguarantor of the strike.

(4) In the case of strike is not conducted as meant in paragraph (1), then for saving theproduction equipment and the companys asset, the Employer may take temporaryaction by:

a. prohibit all Workers/Labors which are conducting strike to stay at theproduction process location; or

b. if it is deemed necessary to prohibit Worker/Labor joining in a strike to stay inthe Companys location.

Article 141

(1) Governmental Institution and the company party accepting strike notice as meant in Article 140 is obliged to give receipt.


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(2) Before and during the strike taken place, the institution in charge of manpower isobliged to settle the problem causing incidence of the strike by bringing into contactand negotiation the disputed parties.

(3) In the case of negotiation as meant in paragraph (2) yielding an agreement, then itmust be made joint agreement signed by the parties and officer from institution incharge of manpower area as witnesses.

(4) In the case of negotiation as meant in paragraph (2) does not yield an agreement,then the officer of the institution in charge of manpower area shall immediatelydeliver the problem causing the strike to the settlement institution of industrialrelationship dispute in charge of.

(5) In the case of negotiation does not yield an agreement as meant in paragraph (4),then on the basis of negotiation between Employer and Worker/Labor union orguarantor of the strike, the strike may be continued or stopped for temporary orstopped permanently.

Article 142

(1) Strike that is conducted does not pursuant to the provisions as meant in Article 139and Article 140 shall be illegal strike.

(2) Legal consequences of illegal strike as meant in paragraph (1) shall be regulatedbased on the Decree of the Minister.

Article 143

(1) Whoever could not restrict the Worker/Labor and Worker/Labor union to use theirstrike right conducted legally, orderly, and peacefully.

(2) Whoever is prohibited to conduct detention and/or arrest to the members ofWorker/Labor and Worker/Labor union conducting strike legally, orderly, andpeacefully according to the prevailing law and regulation.

Article 144

To the strike conducted pursuant to the provisions as meant in Article 140, Employer isprohibited:

a. to substitute Worker/labor who joint in the strike with other Workers/Labors outsidethe company; or

b. to give sanction or responds in whatever form to the members of Worker/Labor andWorker/Labor union during and after conducting strike.

Article 145

In the case of Worker/labor conducting strike legally in conducting normative rights claim,which is seriously impinged by Employer, Worker/Labor is entitled to get salary.

Section 3Lock-out

Article 146


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(1) Lock-out is the basic rights of Employer to refuse Worker/Labor entirely or partiallyto run work as a consequences of negotiation failure.

(2) Employer is not allowed to conduct Lockout as a respond in connection with theexistence of normative claim from Worker/Labor and/or Worker/Labor union.

(3) Lock-out must be done pursuant to applicable law.

Article 147

Lock-out is prohibited to be to be conducted to the companies serving public interestand/or the activity type endangering safety of human being, covering hospital, clean waternetwork service, telecommunication controlling center, electricity power provider,processing of natural gas and oil, and also train/railways.

Article 148

(1) Employer is obliged to advise in writing Worker/Labor and/or Worker/Labor union,and also institution in charge of local manpower area at least 7 (seven) workdaysbefore lock-out is executed.

(2) Notification as meant in paragraph (1) shall at least contain:

a. time (day, date of, and hours) of starting and terminating lock-out; andb. causes and reasons of conducting lockout.

(3) Notification as meant in paragraph (1) shall be signed by the Chief of the companyand/or Employer.

Article 149

(1) Worker/labor or Worker/Labor union and institution in charge of manpower areadirectly receiving notice of lock out as meant in Article 148 must give receipt bymentioning the day, date, and hours of the acceptance.

(2) Before and during lock-out taking place, the institution in charge of manpower areashall be entitled to directly settle the problem causing such lock-out by bringing intocontact and negotiating it with the disputed parties.

(3) In the case of negotiation as meant in paragraph (2) does not yield agreement, thenit must be made agreement signed by the parties and officers from the institution incharge of manpower area as witnesses.

(4) In the case of negotiation as meant in paragraph (2) does not yield agreement, thenthe officer from the institution in charge of manpower area shall immediately submitthe problem causing the lock-out to an settlement institution of industrial relationshipdispute.

(5) If the negotiation does not yield agreement as meant in paragraph (4), then on thebasis of negotiation between Employer and Worker/Labor union, lockout may becontinued or stopped temporary or stopped permanently.

(6) Notification as meant in paragraph (1) and paragraph (2) shall not be needed if:

a. Worker/labor or Worker/Labor union violate the strike procedures as meant in Article 140


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b. Worker/Labor or Worker/Labor union violate the normative provisions whichare determined in the Working Agreement, Companys regulation, Jointworking agreement, or the prevailing law and regulation.

CHAPTER XIIEMPLOYMENT TERMINATION

Article 150

Provisions regarding employment termination in this law shall cover employmenttermination that happened in a incorporated or non incorporated legal entity, individualproperties, property of legal entity or federation, property of private sector and also publicownership, as well as social business and other businesses which have management andemploy other persons by paying salary or compensation in other form.

Article 151

(1) Employer, Worker/labor, Worker/Labor union, and government, with all effort mustendeavor that not to occur employment termination.

(2) In the case of all efforts have been conducted, but employment termination couldnot be avoided, then the intention of employment termination must be negotiated byEmployer and Worker/Labor union or Worker/Labor if the Worker/ Labor inconcerned does not become member of the Worker/Labor union.

(3) In the case of negotiation as meant in paragraph (2) really could not yield theagreement, Employer may only conduct employment termination with Worker/Laborafter obtaining stipulation from the settlement institution of industrial relationshipdispute.

Article 152

(1) Application for stipulating employment termination shall be submitted in writing tothe settlement institution of industrial relationship dispute accompanied by thereasons of becoming its basis.

(2) Application of stipulation as meant in paragraph (1) may be accepted by thesettlement institution of industrial relationship dispute if it has been negotiated asmeant in Article 151 paragraph (2).

(3) Stipulation on the application of employment termination may only be given by thesettlement institution of industrial relationship dispute if in fact the intention toterminate the working relations have been negotiated, but the negotiation does notyield an agreement.

Article 153

(1) Employer is prohibited to conduct employment termination on the reason:

a. Worker/labor is prevented to work because of illness according to doctorrecommendation for period not more than 12 (twelve) months consecutively

b. Worker/Labor is prevented to run his/her work because of fulfilling obligationto the state pursuant to the prevailing law and regulation

c. Worker/Labor performs mandatory religious service of its religion


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d. Worker/Labor married;

e. Pregnant female Worker/labor gives birth, miscarriage, or suckling her baby

f. Worker/Labor has blood and or matrimonial linkage with other Worker/Laborin one company, unless it has been arranged in the Working Agreement,Companys regulation or Joint working agreement

g. Worker/Labor establish, become member and/or management ofWorker/Labor union, Worker/Labor conduct activity of Worker/Labor unionoutside office hours, or in office hours upon the agreement of Employer, orpursuant to the provisions which are arranged in Working Agreement,Companys regulation, or Joint working agreement

h. Worker/Labor reporting Employer to the competent authorities regarding theEmployer action conducting crime

i. Because of difference of religion, ideology, tribe, race, group, gender, physicalcondition, or marriage status

j. Worker/Labor in a permanent disability condition, sick due to workingaccident, or sick because working relationship that according to doctorcertificate which its healing period is unpredictable.

(2) Employment Termination conducted with the reasons as meant in paragraph (1)shall be void by law and the Employer is obliged to employ again the Worker/Labor.

Article 154

Stipulation as meant in Article 151 paragraph (3) shall not be needed in the case of:

a. Worker/labor is still in a probation period, when it has been qualified in writingbefore

b. Worker/Labor submit request of retirement, in writing on his/her own willingnesswithout any indication on the existence of pressure/intimidation from Employer,termination of working relation according to Definite Working Agreement for the firsttime

c. Worker/Labor has reached pension age in accordance with the stipulation in theWorking Agreement, Companys regulation, Joint working agreement or law andregulation; or

d. Worker/Labor passed away.

Article 155

(1) Employment termination without stipulation as meant in Article 151 paragraph (3)shall be void by law.

(2) During the decision of settlement institution of industrial relationship dispute has notyet been determined, both Employer and Worker/Labor must remain carry out theirobligations.


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(3) Employer may conduct deviation to the provisions as meant in paragraph (2) in theform of suspension action to Worker/Labor who are in the process of employmenttermination by remain observing to the obligation to pay salary along with otherrights that usually accepted by Worker/Labor.

Article 156

(1) In the case of employment terminatio

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