Employment Agreement. In Article 50 of The Republic of Indonesia’s Act No. 13 Year 2003 Concering Manpower stated that employment relation exists because of the existence of a work agreement between the employer and the worker/labourer.
Company Regulations and Collective Labour Agreement. Pursuant to The Republic of Indonesia’s Act No. 13 Year 2003 Concering Manpower Article 108 stated that:
- Every employer which employs at least 10 (ten) workers/labourers is under an obligation to establish a set of company regulations that shall come into force after legalized by the Minister or appointed official.
- The obligation to have a set of legalized company regulations as mentioned under subsection (1), however, does not apply to enterprises already having collective labour agreements.
The objective of company regulation or collective labor agreement is to ensure the rights and obligations of employee and employer, creating a harmonious working relationship, safe and dynamic between employee and employer, as well as to improve the welfare of workers and their families.
We we can help your company to create Employment Agreement, the Company Regulation and Draft Collective Labor Agreement (CLA) in accordance with the prevailing regulations.