Constitutional Court: Employment Terminations in Indonesia Require Court Decision

Indonesia’s Constitutional Court has issued a game-changing decision amending provisions of the Manpower Law.

Due to the changes resulting from the Constitutional Court decision, under Article 151 paragraph 4 of the Manpower Law, employment termination requires a court decision that is legally binding. Further, it can be interpreted that under Article 157A paragraph 3 of the Manpower Law, employees shall continue to work and receive wages until there is a court decision on their termination that is legally binding.

The amendments to the Manpower Law following the Constitutional Court ruling are set to have a substantial impact on Indonesia’s labor and employment landscape, both legally and practically. Companies will need to pay close attention to these amendments when managing their employees and handling related matters.

Read the full article looking at the key changes to the Manpower Law here.

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