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Employment Law in Tangerang, Indonesia is governed mainly by the Manpower Act. The Act addresses issues regarding employment contracts, working time, wages, termination, and the rights and responsibilities of both employer and employees. This legislation provides protection for employee’s rights whilst also obligating them to follow some rules and policies set by the employers.
You may need a lawyer if you're dealing with any situation that could potentially end in a legal dispute such as wrongful termination, discrimination claims, issues relating to wages and benefits, drafting and reviewing employee contracts, and legal compliance with local laws. A lawyer can also help if you are opening a new business and need to create a company policy or an employee handbook.
Some key aspects of local employer laws in Tangerang, Indonesia include the requirement of a written employment agreement, the obligation for employers to provide social security for workers, specific rules around termination of employment and severance pay, and strict labor standards for working hours and overtime pay. There are also laws protecting workers from discrimination and providing a healthy safe working environment.
Like any other cities in Indonesia, Tangerang has its minimum wage, which the government sets annually. The wages may vary depending on the industry and type of work, so it’s best to stay updated.
Indonesian law provides strong protection for employees. In most cases, prior to termination, a discussion between the employer, employee, and potentially labor union (if available) is necessary.
No, employers are not permitted to cut salaries without notice or the employee's agreement under Indonesian law.
Overtime is calculated based on an employee's monthly wage and can't exceed three hours in one day and 14 hours in one week. The first hour of overtime should be paid at 1.5x the hourly rate, and subsequent hours are 2x the hourly rate.
In general, non-compete clauses are not enforceable unless they are reasonable in scope and duration. It is advisable to consult with a local attorney before drafting non-compete clauses in employment agreements.
For additional resources, you can consult with the Ministry of Manpower of Republic of Indonesia or the local labor department in Tangerang for advice and access to necessary forms and applications. The Indonesian Employers Association(Apindo) and the Indonesian Labor Union Confederation(KSPI) are also valuable resources.
If you need legal assistance in matters related to employment in Tangerang, the best approach would be to consult with a local attorney who specializes in Indonesian employment law. Legal experts can help you navigate complex situations, provide advice, and represent your best interests. A thorough understanding and adherence to local labor laws can help prevent legal disputes and promote a healthy work environment.
