COMPANY REGULATION / COLLECTIVE LABOR AGREEMENT
IN INDONESIA
Our services in drafting Company Regulations and Collective Labor Agreements are designed to help companies create an inspiring work environment. We not only help formulate employment policies that comply with the law, but also ensure that Collective Labor Agreements reflect a mutually beneficial relationship between the company and employees. With this approach, we help companies build a work culture that supports employee growth, balance and well-being.
Upon establishing a company, the management will be required to understand that a Company Regulations / Peraturan Perusahaan (PP) is important to be implemented. Having Company Regulations ensures that the company operates in accordance with Indonesian employment laws and regulations. This helps the company to avoid legal issues related to manpower operational activities, payroll packages and serves as employee guidelines regarding terms and conditions of employment policies.
Based on the Law number 13 of 2003 on Labor, the importance of company regulations in Indonesia, especially concerning manpower (labor), is significant for several reasons:
1. | Legal Compliance: Company regulations ensure that businesses comply with Indonesian labor laws, which cover a wide range of employment aspects, including wages, working hours, leave entitlements, and termination procedures. Compliance helps prevent legal disputes and penalties that could arise from violations. |
2. | Worker Protection: These regulations play a crucial role in protecting the rights and welfare of workers. By setting clear guidelines on working conditions, safety standards, and benefits, they help create a safe and fair working environment for employees. |
3. | Dispute Resolution: Company regulations often include mechanisms for resolving disputes between employers and employees. This can help address grievances efficiently and maintain harmonious labor relations within the company, which is essential for productivity and morale. |
4. | Business Reputation and Sustainability: Adhering to labor regulations enhances a company’s reputation as a responsible employer, which can attract talent and improve employee retention. It also contributes to sustainable business practices by ensuring that the workforce is treated ethically and fairly. |
5. | Economic Stability: On a broader scale, the enforcement of labor regulations contributes to the overall economic stability and growth of Indonesia. It ensures that workers are adequately compensated, leading to increased consumer spending and a healthier economy. |
STAGES AND what can we help:
Consultation and Information Gathering
Drafting the Initial Document
Consultation and Adjustment
Legal Review and Corrections
Finalization and Implementation
After obtaining approval from all relevant parties, we will finalize the document and continue to oversee the implementation of the Company Regulation or Collective Labor Agreement by providing direction to all employees and carrying out the implementation process in accordance with the plan.
Why Choose Us?
We assist with the goals to acquire labor compliance and to save both employee and employer rights.
Get Started!
Our dedicated team is ready to assist you and providing the necessary legal support to address your concerns in accordance with Indonesian law.
