Some Companies in Indonesia set its employees working hours starting from 7a.m to 4.p.m, and there are some Companies that start from 9a.m to 6p.m. How Indonesia regulation regulates the working hours?
Basically, the regulation on working hours is stated under the Law Number 13 of 2003 concerning Manpower (“Manpower Law”). The following are to inform you about the working hours under the Manpower Law:
- 7 (seven) hours within 1 (one) day and 40 (forty) hours within 1 (one) week for 6 (six) working days within 1 (one) week; or
- 8 (eight) hours within 1 (one) day and 40 (forty) hours within 1 (one) week for 5 (five) working days within 1 (one) week.
However, those limitations of such working hours are not applied in some fields of works/business sector, such as offshore oil drilling, long distance transportation driver, long distance flight, works on a marine vessel, or forest logging.
Also, an Entrepreneurs may work their employee in a public holiday if the type and nature of such works must be performed or carried out uninterrupted, where of course this must be based on an agreement between the employee and the Entrepreneurs. This is regulated under the Decree of Ministry of Manpower and Transmigration Number Kep-233/Men/2003 of 2003 concerning Types and Nature of Jobs that Must be Performed Uninterrupted, which we can specify as follow:
- Health Services;
- Transportation Services;
- Transportation Tools Maintenance Services;
- Tourism Industry;
- Postal and Telecommunications Services;
- Provision of Electricity, access to clean water (PAM), and oil and natural gas fuel provision;
- Supermarkets, Shopping Centre, and its kind;
- Mass Media;
- Conservation Institutes;
- Any works that any stoppage will interrupt the production process, damaging the materials, and including maintenance/reparation of production equipment.
Referring to the above, it is important for the company and/or you as entrepreneurs to understand beforehand on the regulations on working hours. Any overtime may rise an implication which is overtime payment, and if the company and/or entrepreneurs wishes to make its employee to work in public holiday, there will be another implications.
HOW CAN SMART CONSULTING HELP YOU?
To ensure a smooth investment and business operation from the legal perspective, but also still focus on maintaining your business in Indonesia and reach your revenue target, it is advised for you to find capable and trusted lawyers or legal consultants for advice and assistance in ensuring your legal compliance with prevailing laws and regulations.
SMART Consulting is an Indonesian Corporate Legal Services firm. SMART has assisted Clients in dealing with matters related to Manpower Law. Contact Us Now to get your legal solution for your operational and business goals, and still comply with the prevailing laws and regulations.