Labor and Employment Law
Labor and employment law is a tool used to ensure that both the employer and the labor or the employee gain their rights. In other words, The need for an employer to gain worker to support it produces goods and/or service could be fulfilled. On the other hand, the employee could also gain their rights that are: appropriate wages, good working environment condition, and also protection of any injustice and discrimination. In case there is a problem that can break the harmony between the enterprise and the worker, the law could always be used as a reference to provide a solution for both parties.
Labor and Employment Law Applied in Indonesia
All the matters regarding employment in Indonesia are explained in the Act of the Republic of Indonesia Number 13 of the Year 2003 concerning manpower. The law consists of XVIII chapters as listed below:
Chapter I. General Definition
Chapter II. Statutory Bases, Basic Principle, and Objection
Chapter III. Equal Opportunities
Chapter IV. Manpower Planning and Manpower Information
Chapter V. Job Training
Chapter VI. Job Placement
Chapter VII. Extension of Job Opportunities
Chapter VIII. Employment of Workers of Foreign Citizenship
Chapter IX. Employment Relations
Chapter X. Protection, Payment of Wages, and Welfare
Chapter XI. Industrial Relations
Chapter XII. Termination of Employment
Chapter XIII. Manpower Development
Chapter XIV. Labor Inspections
Chapter XV. Investigation
Chapter XVI. Criminal Regulations and Administrative Sanctions
Chapter XVII. Transactional Regulations
Chapter XVIII. Closing Paragraph
The other acts used as the reference for labor issue in Indonesia are Act of Republic of Indonesia Number 21 the Year 2000 about Labour Union and Industrial Relations Act Number 2 the Year 2004.
Who Should Understand The Law?
According to the Manpower Act No.13 Year 2003, there are at least four parties that should understand the labor and employment law.
1. Employer (Enterprise/Entrepreneur)
According to manpower act of law number 13, employer refers to individuals, entrepreneurs, legal entities or other bodies that employ worker by paying them wages or other forms of remuneration. The entrepreneurs themselves are those who run their enterprise, those who run others’ enterprise, and those who run an enterprise whose base is outside the territory of Indonesia. However, the employer who understands the labor law treats the worker adequately based on what is written in the act.
2. Employee (Labor/ Worker)
The employee as those who work for wages and other remunerations must be familiar with the law so that they could protest when their enterprise does not fulfill their rights based on the labor law. For example, the company does not pay their wages and gives working hours more than what is stated in the work agreement.
3. Trade/ Labor Union
Trade/labor union is an organization established by and for labor or workers. It can be within or outside the enterprise. Its responsibility is to strive for, defend, and protect the rights of the worker. By knowing the act well, the trade union can help the employee to fight for their rights.
4. Government
When there is an issue between the employee and the employer, and the e solved by the bipartite cooperation institute could not solve the problem at the enterprise, the government should act like a party that could provide a solution by using its authority. It may give sanction based on the labor and employment law.
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