So far, we have explained the premises of employment contracts, payments upon termination of contracts, and compensation settings, including bonuses and religious festival allowances. This time, we will discuss the obligations and rights related to visas and the accompanying employment contract descriptions.

[Obtaining a work permit]

Since locally hired foreign workers are foreigners, they are required to obtain a work permit (commonly known as IMTA) just like expatriates. It is the employer's responsibility to obtain a work permit. You must also strictly adhere to the division of duties based on your job title for the period stated on your obtained work permit. Employees need to be aware of this compliance, so it should be clearly stated in the employment contract. After obtaining a work permit, you will need to obtain a temporary residence permit (commonly known as ITAS) and submit various notifications, but normally the employer is also responsible for providing the necessary permits and notifications for this work.

On the other hand, we may also employ foreigners who already hold a temporary residence permit in Indonesia through another sponsor (for example, an Indonesian spouse). In this case, your temporary residence permit may be returned and your employer may reacquire it as a sponsor, or you may be able to use your temporary residence permit as is. We recommend that labor and management discuss and agree on which option they wish to take, and that it be clearly stated in the employment contract.

[Revision and return of work permits and various notifications]

It is not just a matter of getting a work permit or temporary residence permit and doing nothing while it is valid. If there is a change of address or passport number, all notifications must be changed. Of course, this process costs money. Agreement on who will be responsible for paying and processing this cost will also be made in the employment contract. Normally, the employer is responsible for the entire permitting process, but in some cases, the change of address is not a request from the company, so the worker is responsible for the change of address. Employees are also obligated to promptly notify the company of changes in address or passport number, so be sure to respond promptly.

Upon termination of the employment relationship, a Return of Work Permit (EPO) is required. The fulfillment of this return obligation must also be specified in the employment contract. Unlike Indonesian employees, there are some restrictions on the processing to be carried out at the end of the employment relationship, so it is better to take this processing period into consideration when setting deadlines for submitting resignation letters. After returning the work permit, etc., the employer has an obligation to allow the employee to return to his or her home country. Although many people understand that workers have an obligation to leave Indonesia, many do not seem to be aware of the obligation of employers to return workers to their home country. Employers will need to have proof that the worker was repatriated, so it's a good idea to keep things like departure stamps and airline tickets.

On the other hand, if you held a temporary residence permit and used it before entering into the employment relationship, the temporary residence permit and the work permit have different sponsors, so even if you return the work permit, the temporary residence permit will not be returned, so you will not be obliged to leave the country. However, the employer is responsible for allowing the employee to return to his or her home country, so it is necessary to agree in the employment contract how to handle the situation. The common practice seems to be that the company provides the expenses for returning to the employee's home country, and the employee is responsible if the employee does not use the funds to return to his/her home country.