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Termination

Notice

Are employers required to give notice of termination?

No. However, in practice a 30-day notice must be given to terminate an employment contract.

Redundancies

What are the rules that govern redundancy procedures?

The Labour Law does not expressly permit redundancy or downsizing a part of the workforce. Redundancy or layoff would be treated as dismissal without cause. An employer should provide evidence as grounds for the redundancy. In particular, evidence is needed if the case is brought to the Ministry of Manpower.

Are there particular rules for collective redundancies/mass layoffs?

No. Termination of one employee will be similar to collective redundancies.

Protections

What protections do employees have on dismissal?

Indonesia does not recognise termination at will. Termination must be with cause and must be in accordance with the procedures under the Labour Law.

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