COVID-19 Pandemic: Indonesia Employment Issues

It has been 3 weeks since the first confirmed Covid-19 case in Indonesia on 2 March 2020. We note that the Indonesian Government altogether with the Regional Government has been trying to implement various new measures daily to keep up with the constantly changing situation. Thus, we strongly advise all clients to closely monitor the evolving situation especially whose businesses are located in DKI Jakarta area as the center of the pandemic.

Legal Frameworks: Our below executive summary refers to the following legal frameworks:

  1. Law No. 13 of 2013 on Manpower (“Law 13/2003”);
  2. Circular Letter of Republic of Indonesia Ministry of Manpower No. M/3/HK.04/III/2020 on Worker/Labor Protection and Business Continuity for the Prevention and Control of COVID-19. (“Manpower Circular No. M/3/HK.04/III/2020”);
  3. Governor Instruction of DKI Jakarta No. 6 of 2020 on  Business Temporary Cease in order to Prevent The Spread of Corona Virus Disease (COVID-19) (“DKI Jakarta Governor Instruction No. 6 of 2020”);
  4. Circular Letter of Manpower, Transmigration and Energy Office / Dinas Tenaga Kerja, Transmigrasi, dan Energi (“Disnakertrans”) Jakarta Province No. 14/SE/2020 of 2020 on  Order to Work From Home (“SE 14/SE/2020”); and
  5. Circular Letter of Disnakertrans Jakarta Province No. 3590/SE/2020 of 2020 on  Follow-Up of Governor Instruction No. 6 of 2020 on Business Temporary Cease to Prevent The Spread of Corona Virus Disease (Covid-19) (“SE 3590/SE/2020”);Main Keys on Employment Issue: We have managed to provide you the following main keys on the employment matters related to COVID-19 pandemic.

Main Keys on Employment Issue: We have managed to provide you the following main keys on the employment matters related to COVID-19 pandemic.

Main Key Remark
Temporary halt of any business activities and implementation of work-from-home measure
  • All business to be temporary halt and to implement work- from-home measure as much as possible
  • Certain business sectors which provide basic human needs such as: (a) the health service sector; (b) basic needs sector; (c) energy sector; (d) the financial services and payment system sectors may continue to operate in their office whilst enforcing COVID-19 deployment prevention protocol. (Par. 2 of SE 3590/SE/2020)
Employee’s Leave
  • Generally, employers cannot force the employee to take leave (annual, long service leave, or unpaid leave) unless it is agreed by the employee. 
  • Employers are required its employee not to come to work if she/he is declared as Person Under Monitoring/Orang Dalam Pemantauan (ODP) according to a medical certificate for maximum 14 days or the numbers of days recommended by the Ministry of Health (Par. II point 1 of Manpower Circular No. M/3/HK.04/III/2020).
Payment of employee wages
  • Employers shall continue to pay employee wages and benefits unless the employee (or the labor union) agree on a different arrangement. (Par. II point 4 of Manpower Circular No. M/3/HK.04/III/2020).
  • An employee who is not able to work due to its status as ODP is entitled to full wages. (Par. II point 1 of Manpower Circular No. M/3/HK.04/III/2020).
  • An employee who is declared as Patient Under Surveillance/Pasien Dalam Pengawasan (PDP) is categorized as sick leave as stipulated under the Law 13/2003 and entitled for the following wage payment scheme: (Art. 93 (3) of Law 13/2003)
  • First 4 months:

100% of wages
  • Second 4 months:

75% of wages
  • Third 4 months:

50% of wages
  • Following each subsequent month (until termination of employment) 

25% of wages
Termination of Employment We noted that that there are currently no specific requirements with regard to the termination of employment during the COVID-19 pandemic. Thus, we assume that the process, obligations, and general requirement of the termination of employment as stipulated in Law 13/2003 remain to prevail.

The article above was prepared by Marshall S. Situmorang (Partner) and Aniendita Rahmawati (Associate).

Disclaimer: The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances. For more information, please contact us at mail@nusantaralegal.com.