Employment and Industrial Relations
Indonesia’s labor law framework is detailed, layered, and frequently tested. We assist corporations in building employment relationships that are legally sound from the outset, managing the full range of workforce obligations with the clarity and foresight that responsible human capital management demands.
Our service covers:
I.Employment Advisory and Strategy
Most employment disputes are not sudden events. They are the product of decisions made without adequate legal input, policies applied inconsistently, and situations allowed to escalate without early intervention. We provide the kind of accessible, practical employment counsel that prevents problems from becoming disputes.
- General Employment Law Consultations
Day-to-day legal guidance for HR teams and management on labor law questions, regulatory obligations, and best practices in workforce management under Indonesian law.
- HR Policy Consultation and Strategy
Strategic advisory on the design and implementation of HR frameworks that reflect current regulatory requirements and support the company’s operational and cultural objectives.
- Workplace Conflict Resolution
Early-stage intervention and structured resolution of internal workplace disputes, designed to de-escalate tensions before they reach the formal industrial relations process.
- Restructuring and Termination Advisory
Legal advice on workforce restructuring, voluntary separation programs, and individual terminations, with full compliance with the severance, gratuity, and compensation obligations under Indonesian labor law.
II. Employment Documentation
Employment contracts are the foundation of every workforce relationship. When they are imprecise, inconsistently applied, or non-compliant with applicable regulations, the cost becomes apparent at the worst possible moment. We draft and review employment documents to withstand the scrutiny of both regulators and courts.
- Employment Contracts (PKWT and PKWTT)
Drafting of fixed-term (PKWT) and indefinite-term (PKWTT) employment agreements in compliance with the Job Creation Law (Cipta Kerja) and its implementing regulations.
- Outsourcing and Manpower Supply Agreements
Structuring and drafting of outsourcing arrangements and labor supply agreements that clearly allocate responsibility between the principal company and the manpower provider.
- Confidentiality, Non-Compete, and NDA
Preparation of enforceable restrictive covenant agreements, including confidentiality obligations, non-solicitation provisions, and non-compete arrangements tailored to the company’s specific business risks.
- Offer Letters and Appointment Documentation
Drafting of professionally structured offer letters and appointment letters that set clear expectations and align with the terms of the broader employment agreement.
IV. Industrial Relations and Dispute Resolution
When an employment dispute moves beyond internal resolution, the procedural and substantive requirements of Indonesia’s industrial relations framework become critical. We represent and advise companies at every stage of that process, from bipartite negotiation and tripartite mediation at the Manpower Office, through to full litigation before the Industrial Relations Court (Pengadilan Hubungan Industrial).
A. PRE-LITIGATION AND EARLY RESOLUTION
- Bipartite Negotiation Support
Strategic legal guidance during internal bipartite dispute negotiations between the company and its employees or employee representatives, structured to achieve resolution within the mandatory 30-day statutory timeframe.
- Tripartite Mediation at Disnaker
Representation during tripartite mediation proceedings at the Manpower Office (Dinas Ketenagakerjaan), including preparation of the company’s legal position, evidence, and formal mediation submissions.
- Union Relations and Collective Negotiation
Facilitation of structured dialogue between management and labor unions, and legal advisory on union rights, bargaining obligations, and negotiation boundaries under Indonesian labor law, including PKB renewal processes.
- Strike Handling and Industrial Crisis Advisory
Immediate legal guidance during industrial action, including assessment of the strike’s legal basis, the company’s response obligations, communications strategy, and measures to limit operational disruption and downstream liability.
B. PHI LITIGATION AND COURT REPRESENTATION
- Disputes over Rights (Perselisihan Hak)
Representation in PHI proceedings concerning violations of employment agreements, company regulations, or statutory entitlements, including unpaid wages, benefits, and regulatory non-compliance claims.
- Disputes over Interests (Perselisihan Kepentingan)
Advocacy in disputes arising from changes to employment conditions, collective labor agreement negotiations, or unilateral amendments to company policy that affect the workforce.
- Termination and PHK Disputes
Strategic representation in disputes involving contested terminations (PHK), unfair dismissal claims, and severance, gratuity, and compensation entitlement calculations before the Industrial Relations Court.
- Workforce Restructuring Legal Advisory
Legal advice on the employment implications of workforce restructuring, mergers, acquisitions, and operational downsizing, covering severance compliance, union consultation obligations, and dispute risk mitigation.