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Indonesia Employment Practices and What You Must Know

Indonesia Employment Practices Over the past years, Indonesia has emerged as one of the largest markets in Asia. With support from the central government, the country has made remarkable strides in technology advancement, leading to impressive economic development. The flourishing business scene in Indonesia has attracted many investors and contributed to the growth of new companies. With that said, Indonesia employment practices have become all the more important for both employers and employees. Read more below.


Good Employment Practices and Why They Matter

Employment practices are described as how a company handles its applicants and employees in the company. It refers to the company and its employees’ dynamic relationship – from how the company handles day-to-day employee affairs, such as the interviews, career-growth, and employee’s overall well-being. These employment practices include:

  • Hiring an applicant.
  • Skills and training for employees.
  • Remuneration.
  • Working grievances and complaints.
  • Managing employee’s disputes.
  • Hours of work and rest days.
  • Transfers and reassignment.
  • Human resources development.
  • Termination of the employee.
  • Retirement of the employee.

Indonesia’s employment laws are comprehensive and detailed, with the Labour Law serving as the primary legislation governing employees’ rights. Additionally, other employment laws, such as the Law on Industrial Relations Dispute Settlement, Law on Labour Unions and 1945 Indonesian Constitutions, are also introduced to protect employees and their right to work without facing discrimination. More labour laws were created as times changed to accommodate for employment issues. For example, Government Regulation No.8 of 1981 was put into place to forbid pay discrepancy between genders. Apart from that, the Minister of Manpower and Transmigration Decree No. KEP. 68/MEN/IV/2004 states that employees who have or are suspected of having HIV or AIDS must not be discriminated against in workplaces.


Understand Your Rights

If you do not have a standardized or proper employment practice in your company, do not worry – it’s never too late to start. Here’s what you can do, as an:

  1. Employer.
    Being an employer, you bear the responsibility towards your employees to be a good manager and a good leader. Your employees are the foundation of your company. Therefore, as an employer, you must set healthy employment measures and make certain that the practices are being followed by other superior staff, such as your team leaders, supervisors, managers, and so on. Walking the talk of good employment practices begins with you.
  2. Employee.
    Regardless if you are a seasoned worker or a newly hired applicant, learning your rights as an employee is crucial. Understanding what is acceptable and what is not, helps you set boundaries in a workplace and hinders you from being taken advantage of. Aside from that, knowing employees’ rights will enable you to quickly recognize the signs of bad employment practices; this will prepare you to take prompt action and help to protect yourself in the event of discrimination or harassment.


Treat Your Employees Right

Having proper employment practices has an array of benefits. Plenty of studies over the years have shown that employees who are well-treated in a conducive workplace are more likely to stay loyal to their company, resulting in a lower turnover rate. Plus, when employees feel safe, respected, and appreciated for their work, the company will experience a better profitability and productivity rate in the long run. Start practising good employment habits in Indonesia today!

Indonesia Employment Practices