Discrimination and Employment Law in Indonesia

Labor & Employment

By Fahrul S. Yusuf

Article 27 of the Indonesian Constitution states that all citizens shall have equal status accorded by law and the government, and are obliged to respect the law and government without exception, and each citizen shall be entitled to work and to have a reasonable standard of living.

The prevailing Indonesian labor laws reflect anti-discrimination principles. Law No. 13 of 2003 regarding Labor (the “Labor Law”) stipulates that termination of an employment relationship shall not be permitted if it is based on the ideology, religion, political inclination, ethnic group, race, social group, gender, physical condition, or marital status of the employee (Article 153(1) of the Labor Law).

Article 3 of Government Regulation No. 78 of 2015 regarding Wages (“GR 78″) states that in determining an employee’s wage, an employer may not discriminate between male and female workers who perform work of equal value.

To ensure the protection of employees’ rights and to prohibit discrimination, Law No. 21 of 1999 ratifies International Labor Organization (“ILO”) Convention No. 111 concerning Discrimination in Respect of Employment and Occupation, and Law No. 80 of 1957 ratifies ILO Convention No. 100 concerning Equal Remuneration for Men and Women for Work of Equal Value.

Under Law No. 8 of 2016 on Disabled People (“Law No. 8″), employers are required to ensure that at least 1% of their workforce is comprised of disabled persons. Law No. 8 also requires employers to accommodate and provide facilities to enable access by employees with disabilities. Employers who fail to provide such requirements face written warnings, cessation of operations, and suspension or revocation of their business license. Enforcement of the law is handled by the Ministry of Social Affairs.

This publication is intended for informational purposes only and does not constitute legal advice. Any reliance on the material contained herein is at the user’s own risk. You should contact a lawyer in your jurisdiction if you require legal advice. All SSEK publications are copyrighted and may not be reproduced without the express written consent of SSEK.

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