Employment

TUNJANGAN HARI RAYA (THR) OR RELIGIOUS HOLIDAY ALLOWANCE

TUNJANGAN-HARI-RAYA-THR-OR-RELIGIOUS-HOLIDAY-ALLOWANCE

Each of the official religion in Indonesia has their own Religious Holidays, which in turn is recognized by the Government. For each Religious Holidays, Companies must make sure to conduct their obligation to distribute Religious Holiday Allowance, otherwise known as THR. Learn all you need to know about THR in our article below. Pursuant to…

Read More

TERMINATION OF EMPLOYMENT DUE TO GRAVE WRONGDOINGS

TERMINATION-OF-EMPLOYMENT-DUE-TO-GRAVE-WRONGDOINGS

Employee who has conducted grave wrongdoings (kesalahan berat) is allowed to be terminated from its employment. However, there are several conditions that must be fulfilled before the termination can be executed. One of the reasons for Termination of Employment (“Pemutusan Hubungan Kerja” or “PHK”) is a conduct of grave wrongdoings (kesalahan berat) by the Employee.…

Read More

EMPLOYEE RESIGNATION WITHOUT “30 DAYS NOTICE”

EMPLOYEE-RESIGNATION-WITHOUT-30-DAYS-NOTICE

Pursuant to the prevailing laws and regulations, Employee resignation must be preceded by a 30 (thirty) days notice of such resignation. What happens if the Employee does not file the notice or resigns on the spot? Learn more about it in our article. Pursuant to Law No. 13 Year 2003 concerning Manpower (“Manpower Law”) and…

Read More

HOW TO REDUCE THE EMPLOYEE SALARY IN THE EVENT OF DEMOTION

HOW-TO-REDUCE-THE-EMPLOYEE-SALARY-IN-THE-EVENT-OF-DEMOTION

Sometimes, a Company may be required to demote its Employees for a number of reasons, such as non-performance, breach of Company Regulations, and so on. In the event of Employee demotion, how can the Company reduce the Employee’s salary? Learn more on whether the prevailing Manpower Law allows a Company to reduce the salary of…

Read More

CAN COMPANIES APPLY FOR MINIMUM WAGE PAYMENT EXEMPTION?

CAN-COMPANIES-APPLY-FOR-MINIMUM-WAGE-PAYMENT-EXEMPTION

All Employers must comply with the applicable Minimum Wage when paying the salaries of their Employee. For Companies struggling financially, the Manpower Law offers an option to apply for an exemption of the Minimum Wage payment obligation, in the form of Suspension (Penangguhan Pelaksanaan Upah Minimum). Learn more regarding the suspension in our article. As…

Read More

HOW TO CALCULATE MINIMUM WAGE FOR EMPLOYEES

HOW-TO-CALCULATE-MINIMUM-WAGE-FOR-EMPLOYEES

Pursuant to Law No. 13 of 2003 concerning Manpower, all Employers domiciled in Indonesia must ensure that their Employees receive no lesser than Minimum Wage as determined each year by the Government. Learn more on how the government calculates the Minimum Wage each year. At the end of each year, each regional government in Indonesia…

Read More