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> GOVERNANCE - home > Employment protection legislation database - EPLex > Indonesia

Indonesia - Procedural requirements for individual dismissals


Procedural requirements for individual dismissals - Indonesia - 2013    

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Notification to the worker to be dismissed: no specific form required

Remarks:
  • Before terminating the employment relationship, an employer is required to negotiate with the workers' organization concerned, or with the non-unionised worker directly, with a view to reaching agreement.
    Art. 151 (3) and 152 MA require that when negotiation fails between parties, decision on the termination will be taken by the institution for the settlement of industrial relations disputes. Since the entry into force of the Act No 2/2004 [IRDSA], the old institutions for the settlement of industrial relations disputes were dismantled and replaced by new mechanisms. As a result, the administration now only acts as a mediator if the parties fail to reach an agreement on the termination. The Industrial Relations Court will hear the dispute if no agreement was found during the mediation phase

Pay in lieu of notice: No

Notification to the public administration: No

Remarks:
  • Art. 151 (3) and 152 MA require that when negotiation fails between parties, decision on the termination will be taken by the institution for the settlement of industrial relations disputes. Since the entry into force of the Act No 2/2004 [IRDSA], the old institutions for the settlement of industrial relations disputes were dismantled and replaced by new mechanisms. As a result, the administration now only acts as a mediator if the parties fail to reach an agreement on the termination. The Industrial Relations Court will hear the dispute if no agreement was found during the mediation phase.

Notification to workers' representatives: Yes

Remarks:
  • Art. 151(2) requires that termination be negotiated.
    Negotiation will involve the worker's representative only if the employee belongs to a trade union (art. 151 (2) MA). If not, the negotiation will take place between the worker and employer.

Approval by public administration or judicial bodies: Yes

Remarks:
  • Art. 151 (3) and 152 MA require that when negotiation fails between parties, decision on the termination will be taken by the institution for the settlement of industrial relations disputes. Since the entry into force of the Act No 2/2004 [IRDSA], the old institutions for the settlement of industrial relations disputes were dismantled and replaced by new mechanisms. As a result, the administration now only acts as a mediator if the parties fail to reach an agreement on the termination. The Industrial Relations Court will hear the dispute if no agreement was found during the mediation phase.

Approval by workers' representatives: No

Remarks:
  • Art. 151(2) requires that termination be negotiated.
    Negotiation will involve the worker's representative only if the employee belongs to a trade union (art. 151 (2) MA). If not, the negotiation will take place between the worker and employer.

Notes / Remarks
The Indonesian termination system is not based on notice but on prior bipartite negotiations and if they fail, on mediation by the administration and eventually judicial settlement.