CONTRACT, PERMANENT, DAILY WORKERS

AND OUTSOURCING
RULES AND REGULATIONS

INDONESIA EMPLOYMENT LAW

NO.13/2003 AND MANPOWER
MINISTER DECREE
NO.100 YEAR 2004
INTRODUCTION

Types of Employment Status in Indonesia:

1. PKWT/Contract
2. PKWTT / Permanent
3. Daily Worker
4. Outsourcing
One additional that stated in the Law:
Apprenticeship ( article 21, UU 13/2003)

Note : there will be a quiz after the presentation to check

understanding
 WORKING RELATIONS ( LAW 13/2003)

1. There is an agreement between both parties.

2. The forms: PKWT (Temporary/limited)
PKWTT (Permanent)
3.It can be in : written or verbal
4.There many items in it, such as: job title,
conditions, salary, period of contract, etc.
5.Signing by both parties.
6.In line with company regulations ( PP/PKB/CLA)
7.The written contract should be in Bahasa
Indonesia.
8.Any cost covered by employer.
 PKWT/CONTRACT

Contract worker should be based on:

a. Period of date/temporary/maximum 3 years.
b. End of certain job.
c. In Bahasa Indonesia.
d. Made in two languages, any dispute occurred will
based on Indonesian language interpretation.
e. No probation period.
f. For seasonal job.
g. For new product/trial product.
 PKWT/CONTRACT

- Contract is maximum 2 years and can be

extended 1 year.
- Employer should inform the staff 7 days in
advance before the contract end, if the
contract need to be extended.
 PKWTT/PERMANENT

- PKWTT/permanent with probation period

-Employer is not allowed to pay the staff salary
under minimum wage within probation period.
-Contract end: employee pass away, resign, court
decision, grave Violence that cause termination
stated in CLA.
 DAILY WOKER STATUS

Daily Worker contract can be implemented for a

certain job that has changing time and volume
characteristic and the staff paid based on the
attendance.

It is valid for employment less than 21 days in a

month, with period of 3 months maximum

It can be extended with break days of minimum 7

days
 OUTSOURCING
UU 13/2003
Company gives part or all job assignment to the
other company with memorandum of
understanding.
a.It must separated with the main business.
b.It be done direct or indirect instruction from the
employer.
c.The term of condition of the staff the same with
the employer condition.
d.The outsourcing company must be in legal based
(PT/Perseroan Terbatas).
 OUTSOURCING.

Outsourcing using : PKWT/contract system

It should be supporting job/not main job or
business
It will not disturbing the main business of the first
company.
 APPRENTICESHIP

Based on an agreement between participant

and company
Prior approval from government and should
completed the apprenticeship curriculum
Not giving salary, but in the form of pocket
money.
Period of contract can be 1 year, and
extended only 1 year.
There is a test when completing the program.
Possibility the company hire the participants
after the program.
 FEW QUESTIONS

What is the RISK for the hotel not follow the

government rules and regulations related to
employment ?

Do we have the same perception in handling few

types of staff status in this hotel ?

What is your ideas and suggestions related this

concerns ?
 QUIZ

True and False :

1.Contract status can be extended more than 2
times.
2.Contract status must follow probation period
3.Contract status can be applied for continuous job
4.Contract status can be extended 1 year only with
break 30 days
 QUIZ

5. No need probation period for permanent staff

6. During probation, company can pay the staff
under minimum wages.
7. Contract agreement is made by both parties
and can be ended by each party without
penalty.
8. Daily worker maximum working 30 days in a
month.
9. Daily worker is based on their attendance.
10. No need working agreement if we hire daily walker.
 QUIZ

11. There is no risk if we hire daily worker more

than 3 months.
12. Outsourcing company must have a legal
based in the form of PT
13. All positions in the company can be put into
outsourcing company.
14. Spa therapist, pool attendant, gardener
and security guards can be in the status of
outsourcing
 SELESAI

SELAMAT BEKERJA