Video Summary - Materi Training HR UU 13 2003 Ketenagakerjaan Lengkap dan Terupdate

Main ideas / lessons conveyed

Purpose of the training

Introduce and explain Indonesia’s Employment Law framework, focusing on:
- Law No. 13 of 2003 (Manpower)
- Key changes triggered by:
  - Job Creation Law (Law No. 6 of 2023)
  - Multiple Government Regulations (PP)
  - Most importantly, Constitutional Court Decision No. 168, read Oct 31, 2024 (described as overturning/revising 21 articles and creating binding consequences)
Emphasize a practical HR approach, using manufacturing-relevant case examples.

Regulatory hierarchy (why it matters)

When regulations conflict, HR must follow a top-to-bottom authority structure:

1945 Constitution
Law No. 13/2003 (some articles amended; others remain valid if not amended)
Law No. 6/2023 (Job Creation Law) (changes/adds/deletes articles)
Constitutional Court Decision No. 168 (not a law, but final and binding; unconstitutional provisions become invalid)
Government Regulation 35/2021
Government Regulation 36/2021 + amendment PP 51/2023 (wages)
Government Regulation 34/2021 (foreign workers)
Minister of Manpower Regulations (technical implementing rules)

Employment relationships

PKWT (Fixed-Term Employment Agreement)

Historically: maximum ~5 years total, via:
- 2 years + 1-year extension + renewal 2 years
After the Job Creation Law: more flexible, with time tied to the work agreement.
After MK18: maximum PKWT is confirmed as 5 years including extensions.
Must be:
- In writing in Indonesian (not verbal)
Compensation upon contract end is now mandated (previous law did not require it).
Sanction principle:
- Violations can shift status to PKWTT (permanent employment).
- MK18 narrows which violations lead to status change (primarily work-related violations).
Core HR takeaway:
- Ensure PKWT is truly for temporary work, not ongoing core production.

Manufacturing case logic

If machine operators perform continuous core production work, using PKWT risks automatic conversion to PKWTT, along with permanent-employee entitlements (including severance).

Outsourcing

Outsourcing rules are described as:
- Amended and further governed under PP 35/2021
Key requirements after MK18:
- Outsourcing provider (e.g., “Alida”) must be a legal entity with a business license
- Outsourced workers’ relationship must be based on written PKWT or PKWTT
- Outsourcing provider is responsible for worker rights (wages, social security, etc.)
- Types of work allowed for outsourcing must be determined by the Minister of Manpower (presented as a key change)
- Transition must not harm workers’ rights
Manufacturing example:
- Outsourced workers placed on main production machines violates the “supporting work” principle, leading to status shift—workers become employees of the user/employing company.

Wages

Wage regulation sources

Based on:
- Law 13/2003 as amended
- Detailed further in PP 36/2021 (and amendment) and PP 51/2023

Minimum wage types

UMP: provincial minimum wage
UMK: district/city minimum wage
UMSK: sectoral minimum wage
- Presented as revived by MK18, even though it was said to be abolished in the Job Creation Law.
- May be higher than UMK in manufacturing sectors.

Minimum wage adjustment formula (as presented)

UM1 = UM × adjustment percentage
The adjustment considers:
- Regional economic growth
- Inflation
- Government-set indexes

Misunderstanding addressed

The framing suggests minimum wage applicability is mainly for workers with less than 1 year tenure.
For 1 year+, reference is the company’s wage structure/scale prepared based on Permenaker No. 1/2017.

Overtime (manufacturing-relevant)

Hourly wage base formula:
- hourly wage = (1/173) × monthly salary
- “173” is based on average monthly working hours
- Monthly salary includes basic salary + fixed allowances
Overtime limits:
- Max 4 hours/day or 18 hours/week
Overtime pay rates:
- Different multipliers depending on whether overtime is on normal time vs rest/holiday time, increasing over the sequence of overtime hours.
Practical example approach:
- Multiply overtime hours by the computed wage multipliers → total overtime pay.
Warning:
- Overtime calculation errors can lead to criminal sanctions.

Working hours, rest, and leave

Working hours (unchanged)

7 hours/day for 6 days/week, or
8 hours/day for 5 days/week
Both total 40 hours/week

Rest days (MK18 highlighted)

Weekly rest is clarified/expanded for the 5-day schedule:
- Previously: one day rest for 6-day pattern
- Now: explicitly 2 days rest for the 5-day work pattern

Annual leave

12 working days after 12 months continuous work.

Long breaks

Should be regulated in:
- work agreements, company regulations, or PKB
Presented as moving from “can be” to being mandatory/required.

Maternity / menstrual / miscarriage leave

Maternity leave:
- 1.5 months before + 1.5 months after
Menstrual leave:
- First and second days kept under the stated article
Miscarriage leave:
- 1.5 months

HR requirement

Ensure all leave rights are clearly written in:
- company regulations/PKB
and socialized to employees.

Termination of Employment (layoffs / PHK)

Core principle

Termination is last resort
Must avoid unnecessary PHK and follow due procedure.

MK18 reshaped layoff procedure (process flow)

Termination notice letter issued by the employer no later than 14 working days before termination date
If worker refuses:
- worker submits refusal letter + reasons within 7 working days
Layoff settlement must be through bipartite negotiations by consensus (central/added under MK18)
If no agreement:
- proceed to dispute resolution via mediation/conciliation or Industrial Relations Court
New layoffs can be implemented only after a decision with permanent legal force

During dispute settlement

Employer and worker obligations continue.
Company must continue paying wages until a legally binding decision.

Severance pay change

Article 156 wording change interpreted as “at least”
- Treated as minimum standard, not an upper limit.

Severance components and structure (explained)

Severance pay (PHK/SC) based on Article 156(2):
- Depends on tenure
- Maximum stated at 9 months wages for 8 years+
- Then multiplied depending on reason category (0.5x, 1x, 2x)
Long service award (PMK) based on Article 156(3):
- Applies for 3 years+
- Increasing up to 10 months wages for 24 years+
Additional amounts mentioned:
- UPH/H (replacement pay): unused annual leave, return-home costs, and items per agreement
- Presented structure includes 15% of total severance pay + UPMK (as described)
Practical calculation example:
- Worker with 10 years service, salary IDR 7 million/month
- Laid off for efficiency (category described as Article 164(3))
- Walkthrough includes:
  - severance component
  - UPMK component
  - plus additional items
- Final point:
  - after MK18, amounts described are minimums; company may provide more but not less.
Risk warning:
- Procedural or calculation mistakes can create huge financial and legal risks.

Foreign workers and worker protection

Foreign workers (MK18 impacts)

Approval authority for RPTKA/RPKA specifically involves the Minister of Manpower
Use of foreign workers must be:
- for specific positions
- for a certain period
- aligned to competencies
Employer must prioritize Indonesian workers
Must appoint Indonesian counterparts as companions for technology/expertise transfer
Manufacturing relevance:
- Ensure expatriate assignments have approved documents and a documented technology transfer program

Protection of female workers

Pregnant workers:
- Example mentioned: prohibition of employing pregnant women between 11 PM and 7 AM when it endangers pregnancy
Coverage includes:
- maternity, miscarriage leave, breastfeeding rights, menstrual leave rights
Violations may lead to criminal sanctions.

MK Decision No. 168 (Oct 31, 2024) summary

Presented as:
- A request by the Buruh Party + several labor union federations
- Partially granted, revising 21 articles in the Job Creation Law
Seven main changes summarized:
1. Foreign workers: approval authority and prioritization emphasized
2. PKWT: max 5 years including extensions + must be written
3. Outsourcing: limitation on “types of work” to be determined by the Minister of Manpower
4. UMSK revived
5. Rest: added explicit 2 days rest for 5-day schedule
6. Termination: strengthened requirements for bipartite negotiations and legally binding decisions
7. Severance pay: interpreted as minimum standard (“at least”) + mandate to create a new employment law separate from Job Creation Law within 2 years (by Oct 2026)

Sanctions and compliance

Criminal sanctions (serious violations)

Examples mentioned:

employing children
foreign workers without proper permit/approval
paying wages below minimum wage

Additional framing:

Wage below minimum:
- prohibited under Article 90 of Law 13/2003
- treated as criminal in the described approach (not merely administrative)

Less severe violations:

e.g., not paying overtime → penalties described as imprisonment and/or fines

Administrative sanctions (progressive)

From:
- written warning
- to restrictions on business activities
- to temporary suspension of some/all equipment
- to freezing business activities

Example:

Non-payment of PKWT compensation can trigger the highest-level sanctions mentioned.

Detailed methodology / instructional checklist presented

A) HR compliance “audit checklist” (12 items)

Participants were instructed to conduct internal audits (suggested at least quarterly) using this checklist:

All PKWT are written in Indonesian
PKWT is not used for permanent work
PKWT period does not exceed 5 years including extensions
PKWT compensation money is paid when the contract ends
Outsourcing company used is a legal entity and has a license
No worker receives wages below minimum wage
Wage structure and scale prepared and socialized
Layoff procedure includes bipartite negotiations
If TKA (foreign workers), RPTKA approved by the Minister of Manpower
All workers registered with BPJS Employment and BPJS Health
Leave rights fulfilled, including annual, maternity, menstrual leave
All K3 management systems implemented

Practice suggestion: make the checklist part of regular HR audits at least every quarter to detect problems early.

B) Layoff (PHK/termination) procedure flow (step-by-step)

Employer provides termination notice letter ≥ 14 working days before termination date
If worker refuses:
- worker submits refusal letter + reasons within 7 working days
Settlement must be through bipartite negotiations by consensus
If no agreement:
- proceed to dispute resolution (mediation/conciliation or Industrial Relations Court route)
Layoffs can only be carried out after a decision with permanent legal force
During dispute settlement:
- wages must continue until a legally binding decision

C) Practical recommendations (6-point plan)

Review all ongoing PKWT:
- ensure ≤ 5 years
- and not for permanent work
Review outsourcing agreements:
- ensure allowed work types comply with rules
Update layoff SOP:
- include bipartite negotiations as mandatory
Monitor sectoral UMSK developments for manufacturing
Monitor DPR discussion of the new employment bill
Document employment processes in writing as proof of compliance

Speakers / sources featured

Presenters

Not individually named in the subtitles; referred to as:
- “everyone/colleagues,” “HR practitioner,” and “jet-mates” (without clear identity)

Primary legal sources cited

1945 Constitution (Articles 27(2) and 28D(2))
Law No. 13 of 2003 on Manpower
Job Creation Law / Law No. 6 of 2023
Constitutional Court Decision No. 168 (read Oct 31, 2024; described as partially granting a request by the “Buruh Party” and labor union federations)
Government Regulation 35/2021
Government Regulation 36/2021 and Government Regulation 51/2023
Government Regulation 34 (foreign workers, as referenced)
Minister of Manpower Regulation No. 1/2017 (wage structure/scale reference)

Institutions referenced

BPJS Employment and BPJS Health
Industrial Relations dispute mechanisms (mediation/conciliation/Industrial Relations Court)
DPR and Government (for the new employment law process)
Minister of Manpower (approvals and authority)

Materi Training HR UU 13 2003 Ketenagakerjaan Lengkap dan Terupdate

Key takeaways