Employment 2025

INDONESIA Law and Practice Contributed by: Indra Setiawan, Ridzky Firmansyah Amin, Marintan Panjaitan and Tifanny Natalia, ABNR Counsellors at Law

With the above definition of work accident in mind, in a mobile work arrangement, it would be difficult to determine a work accident, which would also affect employers’ obligation under the OSH regulations. 5.2 Sabbaticals Indonesian employment law does not explicitly recog - nise the concept of sabbatical leave. The types of leave that are recognised in Indonesia are as follows. • Annual leave – employees are entitled to paid annual leave of at least 12 days upon completion of 12 consecutive months of service. • Long leave – employees may be provided with paid long leave, as stipulated in the employment agree - ment, employee handbook or collective labour agreement. Previously, long leave was only given to employees after six years of continuous service. However, the minimum service period has been removed under the Indonesian employment law. • Menstrual leave – female employees who are in pain during their menstrual period are entitled to two days of paid menstrual leave (ie, the first and second day of their menstrual period). • Maternity leave – under the Indonesian employ - ment law, paid maternity leave lasts for one and a half months before delivery, and for the same dura- tion after delivery, as estimated by an obstetrician or midwife. In practice, however, most employers will allow maternity leave to be taken as a single period of three months after delivery. Maternity leave may be extended if required, as confirmed in a written statement from an obstetrician or mid - wife either before or just after delivery. In addition, under Law No 4 of 2024 on Maternal and Child Welfare During the First 1,000 days of a Child’s Life (the “KIA Law”), maternity leave may be extended for another 3 months in special circumstances, provided that a doctor’s certificate supports this. • Leave following miscarriage – female employees who suffer a miscarriage are entitled to one and a half months of paid leave, or a period of leave as recommended in the medical statement issued by the relevant obstetrician or midwife. • Paternity leave – male employees are entitled to two days of paid paternity leave in the event that

their wife gives birth or experiences a miscarriage. Under the KIA Law, when the wife gives birth, the leave may be extended by up to 3 additional days, or as agreed. • Prolonged illness – employees may leave due to an illness of long duration, and a physician’s certificate should be presented or required when - ever possible. The certificate may be issued by either a private doctor or the employer’s doctor. In the event of a prolonged illness, the employee is entitled to the payment of wages in the following amount: (a) first four months – 100% of the wage; (b) second four months – 75% of the wage; and (c) third four months – 50% of the wage. For each consecutive month exceeding the above period until the employer terminates the employment relationship, the employee continues to be entitled to 25% of their wages. After this period, the employer may terminate employment by paying the stipulated severance package to the employee. Religious obligations – employees are entitled to paid leave due to the performance of a religious obliga - tion (such as the Hajj in Mecca). The duration of leave permitted for a religious pilgrimage is determined by the Ministry of Religious Affairs. This obligation to pay wages during leave due to the performance of a religious obligation is applicable only once for each employee during their respective service period. Additionally, employees are entitled to paid leave in the event of: • marriage of the employee – three days; • marriage of the employee’s child – two days; • circumcision of the employee’s child – two days; • baptism of the employee’s child – two days; • death of employee’s spouse, parents, in-laws, child or child-in-law – two days; and • death of a member of an employee’s household – one day. Other than the above, although not stipulated, in prac - tice, employees may also take unpaid leave based on the employer’s policies, at the employer’s discretion, or subject to an agreement between the employer and

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