Labor Compliance Check for companies in Indonesia

Labor Compliance Check as Preventive Measure Against Indonesian Labor Inspections

Labor Inspection

Increasingly the labor inspectors of the local labor authorities are targeting foreign investment companies with labor inspections. During a labor inspection the inspectors will inspect whether all labor related documents are in compliance with laws and regulations. The Labor Inspectors tend to focus on expatriate labor documents during these inspections. The Labor Inspections are notified to the company often only 1 or 2 working days ahead, which provides companies little time to provide all required documents. The process is often perceived as intimidating by the companies.

The potential consequence in case irregularities are found can be severe for a company. Examples:

  1. Deportation and deterrence of expatriates;
  2. Criminal sanctions, with penalties ranging between IDR 10.000.000 and IDR 500.000.000 and possible imprisonment of up to 5 years.

Companies often unintentionally violate legislation, because Indonesia’s Labor Law and Immigration laws and regulations are complex and frequently changing.  Besides that the legislation is often ambiguous and therefore difficult to interpret for foreign investors.

Labor Compliance Check

labor compliance check Indonesia

To mitigate the above mentioned risks, PNB Law Firm offers a Labor Compliance Check, where our specialized team of lawyers performs audits all labor related documents and checks whether or not these documents comply with Indonesia’s legislation. The experienced lawyers PNB Law Firm’s labor practice and immigration practice daily handle with labor and immigration issues and remain up-to-date with the latest amendments of legislation and internal procedures at ministries or related government bodies.

In the Labor Compliance Check PNB Law Firm’s lawyers perform a compliance check on the following document groups (depending on the specific company, other document groups may be checked):

  1. documents related to the legality of the company
  2. working Time and Rest Time documentation
  3. employment relationship documents
  4. employee’s wages documentation
  5. documentation related to protection / insurance of employees during and outside working hours; and
  6. expatriate workers documents

If you would like to get more information regarding our service or would like to request a quote, please contact us via the the contact details provided at the contact page.