The most common penalties in Indonesia are a warning letter and dismissal. Warning letters have levels from level 1 to level 3. If the violation occurs again during the validity period of the issued warning letter, the level of the warning letter will be increased, and if the violation occurs again during the validity period of the 3rd stage warning letter, the employee may be dismissed.

[Setting of violations that impose various penalties]

Since penalties are to be imposed, it is necessary to set out which penalties will be imposed for what kind of violations. Prior to the Job Creation Act, there were three types of violations that would result in a first-level warning, second-level warning, third-level warning, and disciplinary dismissal (the legal name for this is dismissal due to serious mistakes). In other words, rather than having to impose penalties sequentially starting from the first stage, it was possible to proceed directly to the second and third stages of disciplinary dismissal, but this provision was slightly changed in the Employment Creation Act. There are now only three types of penalties that can be directly imposed: a first-level warning, the first and final warning (almost the same as a third-level warning), and dismissal for pressing reasons (synonymous with disciplinary dismissal), and it is no longer possible to directly impose a second-level warning. A Tier 2 Warning Letter will only be issued if a violation that falls under a Tier 1 Warning Letter occurs again.

[Handling of violations for which a 2nd stage warning was directly imposed]

When the Job Creation Act was first promulgated, this change did not receive much attention, and the Ministry of Labor and Labor Regional Offices approved it with the same violations at each level as before. Therefore, when it comes time to renew the license again, there are many cases where the registration application is submitted without considering any revisions in this regard. Recently, the Ministry of Labor and the Labor Regional Secretariat have announced 2 We have been receiving an increasing number of inquiries asking, ``Why is this not allowed?''. It is a fact of life in Indonesia that it takes time to thoroughly enforce established laws and regulations, but with this revision I feel like we have finally gained citizenship.
The point was made in the form of ``to delete violations that would directly result in a tier 2 warning letter,'' but if the company were to delete it, it would mean that ``it is not a violation,'' and it would be understood as ``something that can be done.'' If you try to keep it as a violation of the first stage warning letter, it may not be considered important because it will be considered a less serious violation than before. In that case, if you try to make the warning letter the first and last (tier 3 warning letter), employees will complain, asking, ``Why are you giving heavy penalties for the same violation as before?'' That's easier said than done.
What should happen is a review of the entire violation. When something happens and the appropriate violation is not listed in the work regulations/labor agreement, people often think, ``I'll add it next time,'' and correct it each time. If the company's situation changes, the violation situation also changes, so there are many cases where the balance becomes unbalanced without an overall review. Penalties are also an opportunity to clearly communicate to employees what the company values. Therefore, the characteristics of each company are clearly visible, and there is a lot of variety. Why not take a look at what your company values ​​and what you absolutely want them to observe, and then rearrange them to include other penalties for violation?