All factory workers, including those working at the factory and offsite, should have a work agreement written in Bahasa Indonesian and signed by both the employer and the worker.
A work agreement must state the terms and conditions of employment, including:
The provisions in a work agreement must be at least as favorable to the worker as the labour law and regulations, the company regulations or the collective bargaining agreement.
Oral work agreements are permitted for permanent work, but the employer must prepare a letter of appointment for the workers that includes:
Enterprises with ten or more workers must establish company regulations, which take effect after they are approved by:
Company regulations should be formulated in consultation with worker representatives, and should specify the rights and obligations of the employer and the workers, working conditions, disciplinary provisions and rules of conduct, and the period of their validity.
Company regulations cannot conflict with or provide less protection than the prevailing laws and regulations.
Companies are not required to have internal regulations if there is already a Collective Bargaining Agreement in place.
MANPOWER ACT NO. 13 OF 2003, ARTS. 108-115 [UU KETENAGAKERJAAN NO. 13 TAHUN 2003, PASAL 108-115];
MOMT REGULATION NO. PER.16/MEN/XI/2011, ARTS. 2-11 [PERATURAN MENAKERTRANS NO. PER.16/MEN/XI/2011, PASAL 2-11].