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ARTICLE · 15 FEBRUARY 2014

Employment in Indonesia: Differences worth labouring

Corrs Chambers Westgarth
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Engaging expatriates, employee entitlements, termination and outsourcing in Indonesia are different from in Australia.

AustraliaEmployment and HR
Jared Heath
Jared Heath
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Indonesia's employment laws are quite different to Australia's. Engaging expatriates, employee entitlements, termination and outsourcing are all arguably more complex.

This has implications for Australian businesses working, hiring and firing there.

FOREIGN WORKERS

A foreigner travelling on a business visa to Indonesia may only undertake limited business activities, such as attending business discussions, participating in seminars and exhibitions and inspecting branch offices. Activities beyond these risk violating the Immigration Law.

In order for Indonesian companies to employ foreigners – including under a joint venture, secondment or sponsorship arrangement with a foreign company – the company must obtain approval for its foreign worker recruitment plan and secure a foreign worker recruitment permit.

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