Labour and Employment Comparative Guide

1 Legal framework

1.1 Are there statutory sources of labour and employment law?

Indonesian labour and employment law is generally governed by the Manpower Law (13/2003), as amended by the Job Creation Law (11/2020) ('Labour Law'). The government has also issued regulations to implement the labour laws, including:

• Government Regulation 35/2021 on fixed-term employment agreement, outsourcing, working hours and rest hours, and termination of employment; and
• Government Regulation 36/2021 on wages.

The other main statutes are:

• the Law on Industrial Relations Dispute Settlement (2/2004); and
• the Labour Union Law (21/2000).

1.2 Is there a contractual system that operates in parallel, or in addition to, the statutory sources?