Secondment and Transfer of Employee Under The Indonesian Manpower Law
The Indonesia Manpower Law Number 13 of 2003 provides definition of Secondment or Job Placement, where it is also known as ‘Penempatan Tenaga Kerja’ or ‘Mutasi Kerja’ as meant in Chapter VI Article 31 until Article 38 of the Indonesian Manpower Law. Secondment or Job Placement means employees can be placed to other company’s premises by the employer which best suits their skills, trade, capability, talents, interest and ability.
The employee may normally be placed by company which has representative or branch or associated companies either domestically or overseas for certain period of time. The Secondment may depend on the employer’s needs on the employee’s skills for projects.
As a result of the Secondment, the terms and conditions in the employment agreement between the original employer and the employee, including its rights and obligations remain unchanged. In particular, the payment of benefits during the work period and upon termination are still the original employer’s liabilities.
There is no new employment agreement shall be made between the new employer and the employee during the Secondment period. Further, any industrial relations dispute arises during Secondment or Job Placement period should be settled between the original employer and the employee through the Indonesian Industrial Relations Court. [Click Download PDF below to read the full article]