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Contracts 03 Nov 2026

is a labor contract of 84 hours per week enforceable

### 1. Executive Summary / Quick Answer **No, a labor contract requiring 84 hours of work per week is strictly unenforceable and legally void (*batal demi hukum*) under Indonesian Labor Law.** Under the Indonesian legal framework, standard working hours are capped at **40 hours per week**, with a strict statutory maximum of **18 hours of overtime per week**. Therefore, the absolute ceiling for work in standard sectors is **58 hours per week**. A contractual clause imposing an 84-hour workweek violates imperative statutory norms (*lex cogens*), rendering the clause invalid under Article 1320 and Article 1337 of the Indonesian Civil Code (*Kitab Undang-Undang Hukum Perdata* / KUHPerdata). Even in specialized industries (such as oil and gas, mining, or offshore operations) where specific shift/roster cycles apply, statutory rest periods, rotation schedules, and overtime caps must strictly comply with sector-specific Ministerial Regulations. --- ### 2. Relevant Indonesian Legal Framework & Statutory Articles * **UU No. 13 Tahun 2003 tentang Ketenagakerjaan**, as amended by **UU No. 6 Tahun 2023 (UU Cipta Kerja)**: * **Article 77 paragraph (2):** Establishes mandatory standard working hours: * 7 hours per day and 40 hours per week for a 6-day workweek; or * 8 hours per day and 40 hours per week for a 5-day workweek. * **Article 78 paragraph (1) letter b:** Overtime work can only be performed up to a maximum of **4 hours per day** and **18 hours per week**. * **Article 78 paragraph (2):** Employers are legally obligated to pay overtime wages (*upah kerja lembur*) for hours exceeding standard thresholds. * **Government Regulation (PP) No. 35 Tahun 2021** (Implementing Regulation on PKWT, Outsourcing, Working Hours, and Termination): * **Article 21 & 26:** Reaffirms the 40-hour weekly baseline and the 18-hour weekly overtime cap. * **Articles 27–34:** Governs mandatory calculation formulas for overtime compensation and strict requirements for employee rest. * **Kitab Undang-Undang Hukum Perdata (KUHPerdata / Indonesian Civil Code):** * **Article 1320:** Prescribes four essential elements for contract validity: mutual consent, legal capacity, a specific subject matter, and a **lawful cause (*sebab yang halal*)**. * **Article 1337:** Stipulates that a contractual cause is unlawful if it is prohibited by statutory law, public morality, or public order (*ketertiban umum*). * **Article 1339:** Dictates that agreements bind parties not only to what is expressly stated, but also to justice, custom, and statutory requirements. --- ### 3. In-depth Legal Analysis & Rights of Parties #### A. Violation of Lawful Cause (*Sebab Yang Halal*) Under Indonesian contract law (Article 1320 paragraph 4 of the KUHPerdata), any agreement that contravenes statutory labor standards violates the principle of a "lawful cause." An 84-hour workweek represents an excess of **44 hours beyond the standard 40-hour limit**, and exceeds even the maximum legal overtime ceiling (40 standard + 18 overtime = 58 hours/week) by **26 hours**. Because statutory working-hour limits are **public order norms (*dwingend recht* / mandatory law)**, the clause prescribing 84 hours per week cannot be validated by mutual consent. Under the doctrine of severability: * The entire employment agreement does not necessarily become void; * The illegal clause specifying 84 hours is **null and void by operation of law (*batal demi hukum*)**; * Statutory provisions automatically supersede the illegal clause, resetting standard working hours to 40 hours per week. #### B. The Special Exception Regime (Mining, Energy, Offshore) Article 77 paragraph (3) of UU Ketenagakerjaan and PP No. 35/2021 allow specific business sectors (e.g., offshore oil & gas, mining, plantation) to apply non-standard working hour arrangements (e.g., a "14 days on, 14 days off" roster). * However, these arrangements are governed by strict sectoral regulations (such as Ministry of Manpower Regulations). * Even when a roster permits 12-hour workdays for a limited consecutive period, the schedule must be offset by mandatory, compensated rest periods (*roster libur*) to maintain the statutory balance. A permanent, non-stop 84-hour schedule without lawful roster structures remains illegal. #### C. Financial and Regulatory Liabilities for Employers 1. **Mandatory Overtime Pay:** If an employee has performed work beyond 40 hours per week, the employer is legally obligated to calculate and pay overtime wages retrospectively under the multipliers outlined in Article 31–32 of PP No. 35/2021. 2. **Administrative & Criminal Sanctions:** * Failure to pay overtime wages constitutes a criminal offense under **Article 187 of UU Ketenagakerjaan**, punishable by imprisonment of 1 month to 12 months and/or fines between IDR 10,000,000 and IDR 400,000,000. * Violating maximum working-hour caps and overtime limits triggers administrative sanctions under **Article 188 of UU Ketenagakerjaan**, including warnings, temporary suspension of business activities, or revocation of operational permits. #### D. Employee Rights * **Right of Refusal:** Employees have the statutory right to refuse to work overtime beyond the statutory limit of 4 hours/day or 18 hours/week without being subjected to disciplinary action or termination (*PHK*). * **Occupational Safety and Health (K3):** Excessive working hours violate occupational safety obligations under **UU No. 1 Tahun 1970 tentang Keselamatan Kerja**. --- ### 4. Actionable Recommendations & Practical Steps #### For Employees: 1. **Gather Evidence of Actual Hours Worked:** Collect timesheets, electronic access logs, shift rosters, emails, or communication records establishing that you were required to work 84 hours per week. 2. **Calculate Unpaid Overtime:** Compute the hours worked in excess of 40 hours per week using the formula set forth in PP No. 35/2021 to determine your back-pay entitlement. 3. **Engage in Bipartite Negotiations (*Bipartit*):** Submit a formal letter to your employer requesting contract rectification to bring it into compliance with UU No. 13/2003 jo. UU No. 6/2023, alongside a claim for accrued overtime pay. 4. **Escalate to the Manpower Office (*Disnaker*):** If bipartite negotiations fail within 30 days: * File a complaint with the **Labor Inspectorate (*Pengawas Ketenagakerjaan*)** regarding statutory working hour violations. * Register an industrial dispute for mediation under **UU No. 2 Tahun 2004** regarding the unpaid overtime claims. #### For Employers: 1. **Immediate Contract Revision:** Amend employment contracts and company regulations (*Peraturan Perusahaan*) to eliminate any clause prescribing an 84-hour workweek. 2. **Transition to Multiple Shifts:** To maintain 24/7 or intensive operations legally, implement a 3-shift or 4-shift operational model (e.g., 8 hours per shift across multiple rotating teams) to stay within the 40-hour limit per worker. 3. **Audit Past Liabilities:** Conduct an internal audit of hours worked and settle outstanding overtime compensation voluntarily to avoid criminal reporting under Article 187 of UU Ketenagakerjaan. 4. **Review Sectoral Clearances:** If operating in energy or mining sectors, ensure that roster schedules are formally reported to and approved by the relevant Ministry of Manpower directorate. --- ### 5. Standard Legal Disclaimer *The analysis provided above is for informational and educational purposes based on prevailing laws and regulations of the Republic of Indonesia. It does not constitute formal legal counsel or establish an attorney-client relationship. For case-specific disputes or tailored contract structuring, consultation with an Indonesian-licensed labor advocate or legal counsel is strongly advised.*

Contracts 28 Okt 2026

if somebody has a 2 year contract but can earn double in another company can i enforce the contractr

### 1. Executive Summary / Quick Answer **Yes, you can legally enforce the financial remedies of the contract, but you cannot physically force the individual to remain employed.** Under Indonesian Law, a 2-year employment contract is classified as a Fixed-Term Employment Agreement (*Perjanjian Kerja Waktu Tertentu* / PKWT). While the Indonesian Constitution and labor laws prohibit forced labor, **Article 62 of Law No. 13 of 2003 on Manpower** explicitly entitles you (as the employer) to financial compensation if the employee resigns prior to the expiration of the 2-year term. Specifically, the employee is legally obligated to compensate you in an amount equal to their **wages for the remainder of the contract period**, unless the contract expressly provides otherwise or an amicable mutual settlement is reached. --- ### 2. Relevant Indonesian Legal Framework & Statutory Articles * **Indonesian Civil Code (*Kitab Undang-Undang Hukum Perdata* / KUHPerdata):** * **Article 1320:** Essential conditions for the validity of an agreement. * **Article 1338:** The principle of *pacta sunt servanda* (agreements validly entered into constitute law for the parties). * **Law No. 13 of 2003 on Manpower (*UU Ketenagakerjaan*), as amended by Law No. 6 of 2023 (*UU Cipta Kerja*):** * **Article 62:** Governs early unilateral termination of fixed-term contracts (PKWT). It stipulates that if either party terminates the employment relationship before the expiration of the period, the party initiating the termination must pay compensation to the other party equivalent to the worker’s salary up to the expiration date. * **Government Regulation No. 35 of 2021 (*PP 35/2021*):** * **Article 17:** Reaffirms that the party terminating a PKWT prematurely must pay compensation for the remaining term of the contract. --- ### 3. In-depth Legal Analysis & Rights of the Parties #### A. Specific Performance vs. Financial Damages * **No Forced Labor:** Under Indonesian public policy, you cannot petition an Industrial Relations Court (*Pengadilan Hubungan Industrial* / PHI) or civil court to compel an employee to physically report to work. * **Enforceability of Monetary Damages:** You have a statutory right to demand compensation for the unexpired duration of the contract. For example, if the employee leaves at month 6 of a 24-month contract, they (or their prospective employer via a buyout agreement) are liable to pay **18 months' worth of basic salary** to your company. #### B. Contractual Penalty Clauses (*Denda*) * If your employment agreement specifies a liquidated damages clause or a fixed buyout fee that differs from Article 62, Indonesian courts and bipartite negotiations generally uphold it, provided it is reasonable and was freely agreed upon under Article 1320 and 1338 of the KUHPerdata. * If specialized, documented training was provided, any accompanying "training bond" (*ikatan dinas*) is also enforceable as a separate contractual recovery claim. #### C. The New Employer’s Role * It is standard industry practice in Indonesia for an employee seeking a higher compensation package to negotiate a **"buyout"** with the prospective employer, wherein the new employer covers the contractual penalty owed to the previous company. #### D. Non-Compete Clauses * If you intend to prevent the employee from joining a competitor: Non-Compete Agreements are notoriously difficult to enforce in Indonesian courts because **Article 27(2) and 28D(2) of the 1945 Constitution** protect every citizen’s right to work and earn a livelihood. * However, if the employee misappropriates company trade secrets or confidential data to secure the new role, you may pursue legal action under **Law No. 30 of 2000 on Trade Secrets**. --- ### 4. Actionable Recommendations & Practical Steps 1. **Audit the Employment Contract:** * Examine the termination clause, notice period, and specific penalty/indemnity provisions. * Confirm whether the contract was properly reported/registered in the government portal (*Kemenaker*) as required by PP 35/2021. 2. **Calculate the Statutory Exposure:** * Determine the exact number of months remaining in the 2-year term. Multiply this by the employee’s regular monthly wage to determine your statutory claim amount under Article 62 of UU 13/2003. 3. **Initiate Bipartite Dialogue (*Musyawarah*):** * Schedule an exit interview/bipartite negotiation. * Present the employee with their legal liability under Article 62 of UU 13/2003. * Offer the employee the option to have their **new employer buy out the contract** or negotiate an exit settlement (*Perjanjian Bersama*). 4. **Issue a Formal Notice (*Somasi*) if Breach Occurs:** * If the employee leaves unilaterally without paying, issue a formal legal notice (*Somasi*) demanding the settlement of the remaining contract value. 5. **Execute a Mutual Termination Agreement (*Perjanjian Bersama* / PB):** * Once financial terms are agreed upon, formalize the exit via a *Perjanjian Bersama* and register it with the local Industrial Relations Court to prevent future claims. --- ### 5. Standard Legal Disclaimer *The guidance provided above is for educational and informational purposes based on prevailing Indonesian laws and regulations. It does not constitute a formal advocate-client relationship. Because labor dispute outcomes depend heavily on the specific wording of your employment agreement and corporate documentation, it is strongly advised to consult with a licensed Indonesian legal advocate before taking formal adverse action.*