RULES AND REGULATIONS CONCERNING LEAVE OF EMPLOYEES

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Through Law Number 13 of 2003 concerning Manpower Law (“Manpower Law”), Indonesia creates the legal framework for employment, which is applied for local and foreigners employed in Indonesia. Therefore, there are several key areas to be aware by the companies and employees within Indonesia’s regarding the Leave Rights.

Pursuant to Manpower Law, the following types of Leave are as follows :

  1. Annual Leave
  2. After 1 (one) year, Employer shall give Annual Leave to Employee at least in the amount of 12 (twelve) days.

  3. Menstruation and Pregnant Leave
  4. Female Employee is not obliged to work for a first day or second day during her menstruation period. And the implementation shall be regulated in Working Agreement, Corporate Rules or Collective Labor Agreement.

    Female Employee shall entitle to obtain a rest time 1.5 (one and a half) month before and after giving a birth or according to the estimation of Doctor or Nurse.

  5. Important Leave
  6. Pursuant to Article 93 of Manpower Law, Employer can also propose the Leave for the following condition :

    1. Marriage : 3 days for Leave
    2. Their family member in one house passing away : 1 days for Leave
    3. Passing away of their husband/wife, parent/parent in law, or daughter/son in law : 2 days for Leave
    1. The marriage of their son/daughter : 2 days for Leave
    2. Their wife giving birth or suffering abortion : 2 days for Leave
    3. Circumcision of their Son : 2 days for Leave
    4. Baptism of their son/daughter : 2 days for Leave
  7. Sick Workers Leave
  8. An employer can leave for sick and obliged to get the wage in the amount of :

    1. First 4 (four) months : 100% (one hundred percent) of the wage;
    2. Second 4 (four) months : 75% (seventy-five percent) of the wage;
    3. Third 4 (four) months : 50% (fifty percent) of the wage;
    4. Before companies/employer terminate the working relations : 25% (twenty five percent) of the wage.

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 Investment Law, such as assist Client to establish Foreign Direct Company and Representative Office. We also assist Clients regarding the Compliance and Corporate Legal Services.

Contact Us Now to get your legal solution for your business goals, and still comply with the prevailing laws and regulations.
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