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Indonesia - Substantive requirements for dismissals

Substantive requirements for dismissals (justified and prohibited grounds) - Indonesia - 2013    

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Obligation to provide reasons to the employee: Yes
  • No express obligation to state the reasons for dismissal. However, according to art. 151 (2) MA: the employer must negotiate directly with the worker (who is not unionized) or, the trade union he belongs to about his intention to carry out the dismissal.

Valid grounds (justified dismissal): worker's conduct; economic reasons; worker's capacity
  • See:
    * Art. 158 MA: grave wrongdoings,
    * Art. 168 MA: absence from work for more than 5 days without justified reason,
    * Art. 161 MA: violation of the provisions specified in the work agreement, the company regulations or the collective agreement,
    * Art. 160 (3) MA: inability to work for reasons related to legal criminal proceeding,
    * Art. 163, 164 and 165 MA: economic reasons (change of status of the enterprise, closing down due to continuous losses, bankruptcy).

Prohibited grounds: marital status; pregnancy; maternity leave; temporary work injury or illness; race; colour; sex; religion; political opinion; trade union membership and activities; disabilities; family members at the same workplace; whistle blowing; lawfully taking leave; fulfilling state duties; ethnic origin
  • Art. 153 MA

Workers enjoying special protection: pregnant women and/or women on maternity leave; confirmed injured workers
  • See: art. 153 c), g), j) and 172 MA.