In the framework of performing one of the provisions of Law Number 11 of 2020 concerning Job Creation (“Omnibus Law”), particularly relating to the protection of rights and welfare of worker/labor, either during employment or post-employment, the Government issued the Government Regulation Number 35 Year 2021 regarding Fixed-Term Employment Contract, Outsourcing, Work Time, Rest Time and Termination of Employment (“GR 35/2021”). Based on its duration, there are 2 (two) types of Employment Contracts, namely the Fixed-Term Employment Contract/Perjanjian Kerja Waktu Tertentu (“PKWT”) and the Indefinite-Term Employment Contract/Perjanjian Kerja Waktu Tidak Tertentu (“PKWTT”). Further, GR 35/2021 provides an important change to formula for calculating the employment termination compensation. You can find our article which elaborate the compensation for PKWT, employment termination formula for PKWTT as well as the grounds for employment termination.

For More Information:

Teguh Maramis (Partner)
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Dr. Julius I.D. Singara (Partner)
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Bernard Moller (Associate)
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