is a labor contract of 60 hours a week enforcable

### 1. Executive Summary / Quick Answer **No, a standard employment contract requiring 60 normal working hours per week is legally unenforceable under Indonesian Labor Law.** Under Indonesian statutory regulations, normal working hours are strictly capped at **40 hours per week**. Any provision in an employment agreement (*Perjanjian Kerja*) stipulating regular working hours in excess of this threshold violates mandatory statutory provisions (*dwingend recht*). Consequently, the clause is **null and void by law (*batal demi hukum*)**, and the statutory limit of 40 hours applies automatically. Even with statutory overtime, the absolute statutory maximum for standard operations is **58 hours per week** (40 normal hours + a maximum of 18 overtime hours), which requires the employee’s written consent and the payment of mandatory progressive overtime wages. --- ### 2. Relevant Indonesian Legal Framework & Statutory Articles * **Law No. 13 of 2003 on Manpower**, as amended by **Law No. 6 of 2023 on the Enactment of Perppu No. 2 of 2022 on Job Creation (*UU Cipta Kerja*)**: * **Article 77 paragraph (2):** Establishes mandatory standard working hours (7 hours/day for a 6-day week, or 8 hours/day for a 5-day week, both totaling **40 hours per week**). * **Article 78 paragraph (1) & (2):** Establishes overtime requirements: maximum of 4 hours/day and 18 hours/week, requiring employee agreement, and obligating employers to pay statutory overtime wages. * **Article 54 paragraph (2):** Stipulates that employment contracts must not contradict statutory manpower laws. * **Government Regulation No. 35 of 2021 (*PP No. 35/2021*)**: * **Article 21:** Reaffirms the 40-hour regular workweek. * **Article 26:** Caps overtime at a maximum of 4 hours per day and 18 hours per week (excluding work on weekly rest days or official public holidays). * **Articles 27–31:** Dictates the non-negotiable calculation formula for overtime pay (*Upah Kerja Lembur*). * **Indonesian Civil Code (*Kitab Undang-Undang Hukum Perdata* / KUHPerdata)**: * **Article 1320:** Four legal elements required for contract validity, specifically *“suatu sebab yang halal”* (a lawful cause/objective). * **Article 1337:** Stipulates that an agreement containing a cause contrary to statutory law, good morals, or public order has no legal force. --- ### 3. In-depth Legal Analysis & Rights of Parties #### A. The Doctrine of Partial Invalidity (*Batal Demi Hukum*) Under Indonesian contract law (Article 1320 jo. Article 1337 KUHPerdata), contractual freedom (*asas kebebasan berkontrak*) is constrained by statutory law. Manpower law is public, mandatory law (*hukum memaksa*). * When a contract specifies 60 normal working hours, that specific provision violates Article 77 of the Manpower Law. * By operation of law, the 60-hour clause is struck down. The employment relationship remains valid, but the working hours default to the statutory maximum of 40 hours per week. #### B. The Legal Ceiling on Overtime An employer cannot circumvent the 40-hour limit by categorizing the extra 20 hours as mandatory recurring overtime in the initial employment agreement: 1. **Overtime Cap:** Under Article 26 of PP 35/2021, maximum overtime during normal workdays is **18 hours per week**. Therefore, a scheduled 60-hour week (40 + 20) exceeds the maximum statutory limit by at least 2 hours per week. 2. **Consent Requirement:** Overtime cannot be pre-mandated as a blanket regular obligation without specific written/digital consent per assignment (*Surat Perintah Kerja Lembur*). 3. **Mandatory Overtime Pay:** Every hour worked beyond 40 hours must be compensated using the progressive multipliers set forth in Article 31 of PP 35/2021 (e.g., 1.5x hourly wage for the first hour, 2x for subsequent hours). #### C. Limited Industry Exceptions Certain sectors characterized by continuous operations, remote locations, or offshore nature (e.g., oil & gas, mining, plantation, or maritime sectors) are permitted to implement non-standard working hour arrangements (e.g., roster systems like 2 weeks on / 2 weeks off). However: * These exceptions are strictly regulated by sector-specific Ministerial Regulations (*Peraturan Menteri Ketenagakerjaan*). * Even under these schemes, total working hours must balance out with designated mandatory rest periods, and applicable overtime rates apply once statutory thresholds are crossed. #### D. Liabilities and Penalties for Employers * **Criminal Sanction:** Failure to pay statutory overtime wages is categorized as a manpower crime under Article 187 of Law No. 13/2003 (as amended), carrying criminal confinement of 1 to 12 months and/or fines between IDR 10,000,000 and IDR 100,000,000. * **Administrative Sanction:** Failure to comply with working hour provisions subjects the company to written warnings, restrictions on business activities, or suspension of business licenses. --- ### 4. Actionable Recommendations & Practical Steps #### For Employers: 1. **Amend the Agreement Immediately:** Redraft standard employment contracts to state regular working hours as either 7 hours/day (for 6 days) or 8 hours/day (for 5 days), totaling **40 hours/week**. 2. **Audit Working Time and Payroll:** If actual operations require hours exceeding 40 hours/week, implement a formal Overtime Order System (*Surat Perintah Lembur*) ensuring hours do not exceed 18 overtime hours/week, and verify that payroll software calculates overtime pursuant to PP No. 35/2021. 3. **Sector-Specific Verification:** If your enterprise operates in mining, energy, or maritime industries, ensure your shift rosters comply explicitly with the relevant sectoral Ministerial Decrees (e.g., Permenaker No. 233/MEN/2003). #### For Employees: 1. **Record Actual Hours Worked:** Keep independent, verifiable logs of your daily clock-in/clock-out times, project assignments, and supervisor instructions. 2. **Initiate Bipartite Deliberation (*Perundingan Bipartit*):** If you are being compelled to work 60 hours without appropriate overtime compensation, submit a formal request for bipartite negotiation pursuant to Law No. 2 of 2004 (Industrial Relations Dispute Settlement). 3. **Lodge an Inspection Request:** If the employer refuses to adjust hours or pay statutory overtime, file a formal complaint with the local Manpower Office's Labor Inspection Division (*Pengawas Ketenagakerjaan Disnaker*). --- ### 5. Standard Legal Disclaimer *The analysis provided above is for educational and informational purposes based on prevailing Indonesian laws and regulations. It does not constitute formal legal representation or create an advocate-client relationship. For specific corporate structuring, drafting of Company Regulations (PP/PKB), or ongoing dispute resolution, consult a licensed Indonesian advocate.*