Ketentuan Seputar Perjanjian Kerja - Presentasi || BudiRewata_Channel

Provisions on Employment Agreements

Budi presents a question-and-answer overview of employment agreements in Indonesia. He advises workers to read an agreement carefully before signing because it sets out working conditions, rights and obligations, and whether the job is permanent or contract-based.

What an Employment Agreement Is and What It Should Contain

An employment agreement is an arrangement between a worker and an employer that establishes the terms of work and each party’s rights and obligations.

According to the presentation’s account of Article 54 of Law No. 13 of 2003, a written agreement should include at least:

• The company’s name, address, and type of business.
• The worker’s name, gender, age, address, and position or type of work.
• The workplace.
• The amount of wages and how they are paid.
• Working conditions, including the employer’s and worker’s rights and obligations.
• The agreement’s start date and period of validity.
• The place and date it was made, and the parties’ signatures.

Requirements for a Valid Agreement

The presentation lists four requirements under Article 1320 of the Indonesian Civil Code:

1. The parties agree to bind themselves.
2. The parties have legal capacity to make the agreement.
3. The agreement concerns a specific subject matter.
4. Its purpose is not prohibited.

It also describes Article 52 of the Employment Law as requiring mutual consent, legal capacity, agreed work, and work that does not conflict with public order, morality, or applicable laws.

Agreement Formats and Types

• Oral agreements: The presenter says these can still bind both parties if the terms are agreed upon and the validity requirements are met. Their major practical weakness is that unwritten terms can be difficult to prove in a dispute.
• Written agreements: These provide evidence and a reference for both parties. The presentation says they should be made in two copies, one for the worker and one for the employer, with equal legal force.
• Fixed-term agreement (PKWT): Covers work for a specified period or until completion of a particular job. Workers under this arrangement are commonly called contract workers.
• Indefinite-term agreement (PKWTT): Establishes an ongoing employment relationship without a specified end date. Workers are commonly described as permanent employees.

Retaining a Worker’s Valuable Documents

The presenter says the employment rules discussed do not specifically regulate whether an employer may keep a worker’s diploma. He frames this as a matter of what the parties agree to, citing Article 1338 of the Civil Code on agreements binding the parties.

Before agreeing, workers are advised to ask why the document is being retained and for how long, and to request proof that it was handed over.

When No Written Agreement Is Provided

The presentation says an oral agreement may still establish a valid employment relationship if both parties agreed to its terms and the agreement meets the applicable validity requirements.

It also says work agreements may be oral or written, but where a PKWT is made orally, the employer must issue an appointment letter. As described in the video, that letter should state the worker’s name and address, start date, type of work, and wages.

Even where the presenter says employers are not generally required to provide a written agreement, workers may ask for one to make the agreed terms clearer and easier to verify.

Seeking Help When Promised Rights Are Not Provided

For alleged violations of rights arising from laws or the agreement—such as wages below the local minimum—the presenter identifies these steps:

1. Raise the matter through bipartite negotiations: Employer representatives and the worker or union discuss the issue and seek consensus. The presentation says this stage must be completed within 30 days from the start of negotiations.
2. Seek mediation: If the parties do not reach agreement, the matter may proceed to mediation through the local Manpower Office.
3. Go to the Industrial Relations Court: If mediation does not produce an agreement, the dispute may be brought before the court.

The presenter also mentions filing a complaint with the relevant labor-inspection division at the provincial, district, or city Manpower Office.

Agreements in a Foreign Language and Company Signatories

The video says written employment agreements must use Indonesian and Latin script. If an agreement is also made in a foreign language, an Indonesian translation must be included. If the versions differ in meaning, the presentation says the Indonesian version applies.

It further states that foreign workers may not hold certain personnel or HR-management positions, while some other senior positions may be open to them. On that basis, the presenter says the company representative signing an employment agreement must be a properly authorized Indonesian citizen and emphasizes that the signer must have legal capacity to bind the company.

Speakers and Sources Featured

• Speaker: Budi, the presenter.
• Legal sources cited or referred to in the presentation:
  • Indonesian Law No. 13 of 2003 on Employment.
  • Indonesian Civil Code, especially Articles 1320 and 1338.
  • Indonesian Law No. 2 of 2004 on the Settlement of Industrial Relations Disputes.
  • Indonesian Government Regulation No. 35 of 2021.
  • Indonesian Government Regulation No. 34 of 2021 on the Use of Foreign Workers.
  • The Job Creation Law, referred to in connection with amendments to employment provisions.