The Omnibus Law (UU Cipta Kerja), enacted to improve Indonesia’s investment climate, has brought substantial changes to employment law.
If your company is still using outdated contract formats, it may be unintentionally non-compliant. Understanding these new regulations is crucial for businesses operating in Indonesia. One of the most notable changes is related to fixed-term employment (PKWT). The Omnibus Law allows for longer durations and more flexibility in contract renewals, which benefits businesses — but also requires clear terms, correct formatting, and documentation to remain legally valid.
The law also introduces changes to termination procedures, severance payments, and outsourcing regulations. Employers must now adjust internal policies and SOPs to align with these new norms, especially when dealing with terminations or mass layoffs.
Missteps in contracts or HR procedures could result in legal disputes, fines, or reputational damage. Many companies underestimate the importance of aligning employment practices with new legal frameworks — until it becomes a costly issue.
At SatuSolusi, we provide employment contract reviews, legal templates, and consultation on HR compliance to keep your business protected and professionally structured in light of current regulations.
