THE PRESIDENT REPUBLIK INDONESIA CONCERNING EMPLOYMENT ...

THE PRESIDENT

REPUBLIK INDONESIA

GOVERNMENT OF THE REPUBLIC OF INDONESIA REGULATION

NUMBER 35 OF 2021

CONCERNING

EMPLOYMENT AGREEMENT FOR A SPECIFIED PERIOD OF TIME,

OUTSOURCING, WORKING TIME AND REST TIME, AND TERMINATION OF

EMPLOYMENT

WITH THE GRACE OF THE GOD ALMIGHTY

PRESIDENT OF THE REPUBLIC OF INDONESIA,

Considering

: whereas in order to implement the provisions of Article 81 and

Article 185 letter b of Law Number 11 of 2020 concerning Job

Creation, it is necessary to stipulate a Government Regulation

concerning Employment Agreements for Specified Period of Time,

Outsourcing, Working Time and Rest Time, and Termination of

Employment;

In view of

:

1.

Article 5 paragraph (2) of the 1945 Constitution of the

Republic of Indonesia;

2.

Law Number 13 of 2003 concerning Manpower (State

Gazette of the Republic of Indonesia Year 2003 Number 39,

Supplement to the State Gazette of the Republic of

Indonesia Number 4279);

3.

Law Number 11 of 2020 concerning Job Creation (State

Gazette of the Republic of Indonesia Year 2020 Number

245, Supplement to State Gazette of the Republic of

Indonesia Number 6573);

THE PRESIDENT

REPUBLIK INDONESIA

HAS DECIDED:

To stipulate

REGULATION

CONCERNING

: GOVERNMENT

EMPLOYMENT AGREEMENT FOR A SPECIFIED PERIOD OF

TIME, OUTSOURCING, WORKING TIME AND REST TIME,

AND TERMINATION OF EMPLOYMENT.

CHAPTER I

GENERAL PROVISIONS

Article 1

In this Government Regulation what is meant by:

1.

Employment Relationship shall be a relationship between an

employer and a worker/laborer based on an Employment

Agreement, which has elements of work, wages and orders.

2.

Worker/Laborer shall be any person who works by receiving

wages or other forms of remuneration.

3.

Employer shall be:

a.

individuals, associations, or legal entities operating

their own company;

b.

individuals, associations, or legal entities independently

operating companies that do not belong to them;

c.

individuals, associations, or legal entities who are in

Indonesia, representing companies as referred to in

letters a and b which are domiciled outside the territory

of Indonesia.

THE PRESIDENT

REPUBLIK INDONESIA

4.

Company shall be:

a.

any form of business, either a legal entity or not,

belongs to an individual, a partnership, or a legal entity,

either privately owned or state owned, which employs

Workers/Laborers by paying Wages or other forms of

remuneration;

b.

Social enterprises and other businesses that have

management and employ other people by paying

Wages or other forms of remuneration.

5.

Trade Union/Labor Union shall be an organization

established from, by, and for Workers/Laborers both within

and outside the Company, which is free, open, independent,

democratic, and responsible for fighting for, defending and

protecting rights and interests of Workers/Laborers and

improving the welfare of Workers/Laborers and their

families.

6.

Wages shall be workers¡¯/laborers¡¯ rights received and

expressed in cash as compensation from the employer to

workers/laborers, set and paid according to an employment

agreement, agreement, or laws and regulations, including

allowances for Workers/Laborers and their families for a job

and/or service that has been or will be performed.

7.

Overtime shall be working time exceeding 7 (seven) hours a

day and 40 (forty) hours in 1 (one) week for 6 (six) working

days in 1 (one) week or 8 (eight) hours a day and 40 (forty)

hours in 1 (one) week for 5 (five) working days in 1 (one)

week or working time on weekly rest days and/or on official

holidays stipulated by the government.

8.

Overtime pay shall be the wage paid by an employer to a

worker/laborer who performs a job during overtime.

THE PRESIDENT

REPUBLIK INDONESIA

9.

Employment agreement shall be an agreement between a

Worker/Laborer and an enterpreneur or employer which

contains the working conditions, rights and obligations of the

parties.

10.

Perjanjian Kerja Waktu Tertentu (Employment agreement for

a Specified Period of Time), hereinafter referred to as PKWT,

shall be an Employment agreement between a

Worker/Laborer and an Employer to establish an

Employment Relationship for a specified period of time or for

a certain job.

Perjanjian Kerja Waktu Tidak Tertentu (Employment

agreement for Unspecified Period of Time), hereinafter

referred to as PKWTT, shall be an employment agreement

between a worker/laborer and an employer to establish a

permanent employment relationship.

11.

12.

Company Regulations shall be regulations made in writing by

Employers which contain the working conditions and

company rules.

13.

Collective Bargaining Agreement shall be an agreement

which is the result of negotiations between a Trade/Labor

Union or several Trade/Labor Unions registered at the agency

responsible for manpower affairs, and an employer, or several

employers or a group of employers, which contains working

conditions, rights and obligations of both parties.

14.

Outsourcing Company shall be a business entity in the form

of a legal entity that meets the requirements to perform

certain jobs based on an agreement agreed with the job

providing company.

15.

Termination of Employment shall be the termination of an

employment relationship due to certain reasons resulting in

the termination of rights and obligations between

THE PRESIDENT

REPUBLIK INDONESIA

Workers/Laborers and their employers.

16.

National Government shall be the President of the Republic

of Indonesia who holds the governmental power of the

Republic of Indonesia, assisted by the Vice President and

ministers as referred to in the 1945 Constitution of the

Republic of Indonesia.

17.

Labor Inspectors shall be civil servants who are fully

assigned for the duties, responsibilities, powers and rights by

the authorized official to conduct the activities of assisting,

examining, testing, investigating and developing the labor

inspection system in accordance with the provisions of laws

and regulations.

18.

Minister shall be the minister administering the government

affairs in the manpower sector.

CHAPTER II

EMPLOYMENT AGREEMENT FOR A SPECIFIED PERIOD OF

TIME

Part One

General

Article 2

(1)

Employment relationship shall occur upon the occurence of

an employment agreement between an employer and a

worker/laborer.

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