Richard Cornwallis and Lia Alizia of Makarim & Taira S.
look at some of the important procedural aspects of redundancies in
Indonesia.
Introduction
The recent global economic crisis has created a risk of
significant increases in terminations of employment for economic or
business efficiency reasons. Such terminations of employment are
specifically referred to in Law No. 13 of 2003 on Manpower
("Manpower Law").
Employers should be aware of the many different tactics,
potential problems and practical issues and procedures which relate
to every type of termination of employment in Indonesia and
particularly those which may be termed redundancies or
retrenchments. This article attempts to provide practical and
useful advice for employers who find themselves conducting a
redundancy process in Indonesia.
