Penalty provisions in Indonesia | Handling of warning letters
To general employees in IndonesiaPenaltiesteeth"Warning letter (1st to 3rd stage)"and"dismissal"is.
However, with the enforcement of the Job Creation Act, the rules for imposing penalties have changed.
Recently, there has been a rapid increase in the number of cases in which the Ministry of Labor and local secretariats point out amendments to regulations when applying for renewal of employment regulations or collective bargaining agreements.
What is the penalty provision “warning letter” for Indonesian companies?
Penalties for Indonesian companieswarning letter” means
A document issued by an employer when a worker commits an act that violates work regulations or a collective agreement.
is.
In the warning letterLevels from stage 1 to stage 3There is.
If the violation occurs again during the validity period of the issued warning letter, the next level of warning letter will be issued.will be done.
If the violation occurs again during the 3rd stage warning letter validity period,DismissalYou can.
each warning letterThe expiration date can be set up to 6 months from the date of issue of the warning letter.is.
*However, unless otherwise specified in the labor contract, work regulations, or collective agreement (e.g., 3 months, etc.).
Changes to “warning letter” rules under the Job Creation Act
In Indonesia,Prior to the revision of the Job Creation Act, it was not necessary to issue warning letters in order starting from the first stage, and it was possible to proceed directly to the second or third stage of disciplinary dismissal.
In other words, the aboveThere was no restriction that ``If the violation occurs again during the validity period of the issued warning letter, the next level of warning letter can be issued.''It is.
(Example) Operation of the previous warning letter (if the warning letter is valid for 6 months and the violation is committed again 7 months after the first stage warning letter)
41st of the monthStage 1 warning letter
111st of the monthStage 2 warning letter
butUnder the current law (Law No. 35 of 2021, Employment Creation Act), the penalties that can be directly imposed are limited to the following three:It has been.
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Stage 1 warning letter
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first and last warning letter(Almost synonymous with the old 3rd stage warning letter)
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Dismissal for urgent reasons(formerly synonymous with disciplinary dismissal)
In other words,A Tier 2 warning letter can only be issued if the violation that falls under the Tier 1 warning letter recurs.The operation has changed.
(Example) Current use of the warning letter (if the warning letter is valid for 6 months and the violation occurs again 7 months after the first stage warning letter)
41st of the monthStage 1 warning letter
111st of the month1st stage warning letter *2nd stage warning letter cannot be issued.
Disadvantages of not being able to directly issue a 2nd stage warning letter
If the direct imposition of a Tier 2 Warning Letter based on the Job Creation Act is removed from the employment regulations (or/and collective bargaining agreement), companies will face the following dilemma.
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Tier 2 warning letter removed from regulations: It is misunderstood that the acts that were covered by the second-level warning letter are ``no longer a violation (they can be done).''
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Assign actions that were subject to a Tier 2 warning to Tier 1: There is a risk that it will be perceived as a ``lesser violation than before,'' and that it will be looked down upon.
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Elevating actions that were subject to a Tier 2 warning to the first and final warning: Employees are dissatisfied, asking, ``Why are the penalties suddenly so severe for the same violation?''
Simply moving or deleting items can lead to confusion on site.
Penalties are a message that conveys the company's values
Violation regulations tend to become a ``lack of confusion'' where new regulations are added each time a problem arises.
As the circumstances of the company change, the circumstances of the violation also change, so there are many work rules that are unbalanced.
Taking this opportunity, instead of making minor corrections,We recommend that you conduct a “total review of violation regulations.”I will.
Penalty regulations are an important communication tool for conveying to employees what the company values and what rules they absolutely want them to follow.
Why not reorder and restructure all penalties to align with your company's values?
At our company, Keystone Consulting Group, we provide one-stop support for legal, tax, and accounting consultations, including these complex personnel and labor issues.
It doesn't matter if it's a trivial question, such as, ``I'm not sure if my company's current work rules are okay,'' or ``I'm not sure how to deal with problems with employees.''
Please feel free to contact us, as our experienced professionals will be happy to assist you.
[For inquiries, please contacthereFrom (free initial consultation!) ]
