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SALARY PAYMENT IN Indonesian Rupiah (IDR, Rp)
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Indonesia
Indonesia’s probation period offers a distinct trial phase within employment relationships. The next sections will reveal how this period grants specific rights to employees while imposing particular obligations on their employers. Get ready to discover what exactly constitutes a probation period under Indonesian law.
Probation periods are only possible on fixed-term contracts in Indonesia. The maximum length is three months.
Probation periods are a common feature within the Indonesian employment framework. These periods offer employers a window to assess the suitability of a new employee. The maximum duration for a probation period in Indonesia is 3 months, and it cannot be extended. During this time, both the employer and employee have the right to terminate the employment relationship with a shorter notice period than would normally be required.
In Indonesia, the legal right to a probationary period hinges on the type of employment contract offered. Probation periods are only applicable to permanent contracts (Perjanjian Kerja Waktu Tidak Tertentu – PKWTT). These contracts offer employees greater job security but allow for a trial period to assess fit.
Fixed-term contracts (Perjanjian Kerja Waktu Tertentu – PKWTT), on the other hand, DO NOT include probationary periods. This is because the fixed term itself acts as a trial period, with a pre-determined end date.
There’s a crucial detail to remember when it comes to the contract and the probation period. The details of the probation period, including its duration must be explicitly mentioned in the written employment contract. If the contract is silent on probation, then it’s legally considered non-existent, and the employee is automatically considered a permanent employee from day one
Despite being in a trial phase, probationary employees in Indonesia hold some key legal rights.
First and foremost, their compensation cannot fall below the minimum wage mandated by Law No. 13 of 2003 Concerning Manpower (Manpower Law). This ensures they receive fair pay throughout the assessment period.
Additionally, probationary employees are shielded by the same core labor protections as their permanent counterparts. This includes safeguards against discrimination and harassment, as outlined in Law No. 21 of 2000 Concerning Trade Union (Labour Union Law).
Employers must uphold a safe and healthy work environment free from these harmful behaviors, regardless of the employee’s probationary status.
During probationary periods in Indonesia, employers are bound by specific legal obligations to ensure a fair and transparent assessment process for probationary employees. One of the primary obligations is the clear delineation of the probation period’s terms and conditions in the employment contract. This includes specifying the duration of the probation, the criteria for evaluation, and the rights and duties of the probationary employee.
Employers are also required to provide probationary employees with a detailed job description and the objectives that need to be achieved during the probation period. This clarity helps in setting the right expectations and provides a benchmark against which the employee’s performance can be measured.
Furthermore, employers must ensure that probationary employees are treated equally and fairly in terms of work conditions and safety standards. This means providing a safe work environment, adhering to minimum wage regulations, and ensuring that probationary employees are not subjected to discrimination or unfair treatment.
Additionally, if an employer decides not to continue the employment relationship after the probation period, they are obligated to provide a valid reason for this decision. While probationary employees may not be entitled to severance pay typically afforded to permanent employees, the decision to terminate must still be justified and communicated clearly to avoid any potential legal disputes.
In Indonesia, probation periods are optional but come with specific conditions:
If the contract doesn’t mention probation, the employee is automatically considered permanent from the start.
Probationary periods offer valuable advantages for both employers and employees in Indonesia.
Employers gain a crucial window to assess an employee’s skills, work ethic, and cultural fit within the team. This allows them to make informed decisions about confirming the employee for the permanent position. Additionally, it reduces the risk of a bad hire who might not be a good long-term fit for the company.
For employees, probation periods provide an opportunity to demonstrate their capabilities and adapt to the new role and company environment. This trial period allows them to showcase their potential and make a strong case for securing the permanent position. It also offers a chance to assess the company culture and work style to ensure it aligns with their own expectations before committing to a long-term employment arrangement.
Managing probationary employees effectively requires a well-defined approach. Here’s a breakdown of key steps for employers in Indonesia:
Begin by introducing the new hire to colleagues and key players within the company. Familiarize the employee with the work environment, company culture, and daily routines. Finally, clearly outline the employee’s role, responsibilities, and performance benchmarks.
Ensure the employee has access to structured training, empowering them with the necessary skills and knowledge. Schedule regular performance discussions to provide constructive criticism and assess progress.
Maintain open communication channels to address any questions or concerns the employee might have. Consider assigning a mentor who can provide guidance and support throughout the probationary period.
Your business can easily hire employees in Indonesia without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
Probationary periods in Indonesia are only available for employees on permanent contracts. It is not generally recommended to hire employees on permanent contracts; however, if you must hire an employee on a permanent contract, the required notice period for the employer to terminate employment during the probationary period is 7 days.
Probationary periods in Indonesia are only available for employees on permanent contracts. It is not generally recommended to hire employees on permanent contracts; however, if you must hire an employee on a permanent contract, the required notice period for the employee to terminate employment during the probationary period is 7 days.
An employer cannot extend the probation period to be longer than three months.
Yes, but there is a minimum seven day notice period.
Yes, the mandatory notice period for terminations during probation is seven days.
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Headquarters – Singapore
71 Robinson Road #13-153
Singapore 068895
+65 3105 1170
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
See more locations
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