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ARTICLE · 13 APRIL 2022

Labour And Employment Comparative Guide - Indonesia & India

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In Indonesia, labour and employment or manpower is governed under Law No. 13 of 2003 on Manpower, as lastly partially amended by Law No. 11 of 2020 on Job Creation, which works as the main "umbrella law" for manpower related regulations.

IndonesiaEmployment and HR

A. General Legal Framework of Labour and Employment Law

1. What are the main statutory sources of labour and employment law in your jurisdiction?

In Indonesia, labour and employment or manpower is governed under Law No. 13 of 2003 on Manpower, as lastly partially amended by Law No. 11 of 2020 on Job Creation (collectively, the "Manpower Law"), which works as the main "umbrella law" for manpower related regulations.

In addition to the above, there are other implementing regulations issued by the government and Ministry of Manpower ("MoM"), which essentially act as the implementing regulations to Manpower Law. They include Government Regulation No. 35 of 2021 on Fixed-Term Contract, Outsourcing, Work and Resting Hours, and Termination of Employment ("GR 35/2021"), Government Regulation No. 36 of 2021 on Wages ("GR 36/2021"), and Government Regulation No. 37 of 2021 on Implementation of the Job Loss Security Program (GR 37/2021).

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