Employment Law

Workplace Discrimination

Under Indonesian law, employers may not discriminate in the workplace on the basis of age, disability, pregnancy, race, national origin, religion, gender and sexual orientation. This includes treating employees differently in hiring, firing or other terms and conditions of employment or permitting the harassment of employees.

Discrimination laws also prohibit employers from implementing a seemingly neutral business policy that has a disparate impact on those within a protected class. If an employee reports or threatens to report discrimination, it is unlawful for employers to retaliate against the employee for asserting their rights. Our attorneys have extensive experience helping employers develop policies to minimize discrimination in the workplace. However, when disputes arise, we are strong advocates on behalf of employers and employees to resolve conflicts effectively.

Wrongful Termination

Many Countries, Indonesia included, have “at will” employment laws which permit a private-sector employer to terminate an employee for any reason at any given time, absent an employment agreement to the contrary.

However, there are exceptions when ‘at will’ employees cannot be fired or laid off. A wrongful termination claim can be brought if an employer impermissibly or improperly terminates someone’s employment if such termination would constitute discrimination or retaliation. We advise clients on either side of a dispute regarding the laws that apply and advocate on their behalf.

Wage and Hour Violations

While many individuals are familiar with the concept of minimum wage, employers have a host of obligations under local wage and hour laws.

These include rules for exempt and non-exempt employees, overtime calculation, the frequency and manner of payment, wage statements and deductions and other requirements. We advise employers regarding compliance with all laws and represent employers and employees in wage and hour complaints.

Employee Misclassification

There are important distinctions between employees and independent contractors under labour and employment laws.

As a result, both workers and employers must understand the rules so that workers receive the benefits to which they are entitled, and employers avoid significant liability for illegally misclassifying employees as independent contractors. We review worker classifications and independent contractor agreements to help ensure compliance with all applicable laws. Furthermore, we advise clients how to address disputes if they arise.

Offer Letters and Employment Agreements

Generally, an offer letter and employment agreement document a new employee’s job duties, compensation, benefits and other factors of the new employment.

The purpose is to minimize misunderstandings and future problems in the workplace. As such, we recommend that both sides consult an attorney to draft, negotiate and/or review these documents before signing.

Separation and Severance Agreements

When employees leave a company, there may be concerns about future legal claims. Employers will often give the departing employee a separation or severance agreement to sign wherein the employee receives a benefit package in exchange for waiving his or her right to sue the company.

The agreement may also contain non-disparagement and non-compete provisions. We assist employers in drafting appropriate agreements to minimize the risks of a lawsuit. Our attorneys also counsel employees regarding whether it is in their best interest to accept the agreement or attempt to negotiate it.

Employee Handbooks

Every employer should have an employee handbook to ensure employees receive all legally required notices. In addition, it also educates employees regarding company policies, procedures, benefits and expectations.

A handbook, when devised correctly, may also offer an employer protection in a lawsuit. Conversely, it may help establish liability against an employer if it is poorly drafted. Our firm has extensive experience drafting and updating employee handbooks so they meet the unique needs of the business.

We can assist you with a number of employment law matters, including:

- Race, gender, sexual orientation, age, pregnancy, religious, disability, and national origin discrimination

- Wrongful termination

- Sexual harassment

- Retaliation

- Unequal pay, unpaid overtime or wages, pensions and violations

- Breach of employment agreements

- Negotiating and reviewing employment contracts or severance agreements