Overview on Definite-Term Employment Agreement Regulation

Indonesia’s Omnibus Law, which was issued on November 2020, stipulates new standards for Indonesian employment terms and conditions by introducing new concepts and rules. The goals of the Job Creation Law are to bolster investment and create jobs by streamlining regulations and simplifying the licensing process to improve the ease of doing business in Indonesia. Moreover, several regulations were issued and set new rules and procedures for implementing regulations of Omnibus Law. These implementing regulations include Government Regulation Number 35 Year 2021 concerning Definite-term Employment Agreement, Outsourcing, Working and Resting Hours, and Termination of Employment (“GR No. 35/2021”).

 

Please find below our further explanation regarding the Definite-term Employment Agreement Regulation based on GR No. 35/2021.