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Employers Face Jail and Fines for Not Paying Overtime on Holidays in Indonesia

by Becky
2025-01-28
in Economic
A A
Ilustrasi. (Instagram/Info.karawang)

Ilustrasi. (Instagram/Info.karawang)

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Jakarta, Indonesia Sentinel — As the holiday season draws near, some employees remain obligated to work even on official public holidays. However, Indonesian labor laws clearly mandate that employers must compensate such workers with overtime pay. Non-compliance carries significant penalties, including imprisonment and fines.

This regulation is stipulated in Labor Law No. 13 of 2003, Article 85, which emphasizes that employers are required to pay overtime wages to employees who work during official holidays. Failure to do so can result in serious legal consequences.

“Employees are not obligated to work on official public holidays,” the Ministry of Manpower (Kemnaker) stated in an Instagram post on its official account, @kemnaker.

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Penalties for Non-Payment of Overtime

Employers who fail to compensate holiday workers properly can face criminal charges under the law. The penalties include imprisonment ranging from a minimum of one month to a maximum of 12 months. In addition, employers may be fined between IDR 10 million (approximately $650) and IDR 100 million (approximately $6,500).

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These legal provisions are designed to protect workers’ rights and ensure fair treatment, particularly during the holiday season when employees might otherwise face exploitation.

The penalties highlight the government’s commitment to enforcing labor laws and holding employers accountable for their obligations to workers.

Industries Exempt from the Rule

Despite the general prohibition on mandatory work during public holidays, the law makes allowances for specific sectors where operations cannot be halted. These sectors include:

  • Healthcare services
  • Transportation repair and operation services
  • Tourism industries
  • Electricity supply
  • Clean water services
  • Fuel providers

Workers in these industries often play essential roles in maintaining critical public services. As such, they may be required to work on holidays, provided that proper compensation is ensured.

Continuous Operations and Agreements

The law also permits certain types of work to continue during holidays, such as:

  • Operations that, if interrupted, could damage materials or disrupt production.
  • Maintenance or repair of production equipment necessary to sustain ongoing operations.

In such cases, employers must ensure that employment contracts or agreements explicitly outline the terms of holiday work, including the obligation to pay overtime wages.

Enforcing Labor Rights

The Ministry of Manpower’s public reminders aim to raise awareness among both employers and employees about their respective rights and responsibilities during the holiday season. By doing so, the government seeks to prevent labor disputes and protect workers from exploitation.

As the Ministry noted in its Instagram post, “Employers must respect the rights of workers and adhere to labor laws to ensure fair treatment and harmony in the workplace.”

Protecting Workers During the Holidays

This law underscores the importance of maintaining balance between business operations and employee welfare. While some industries are permitted to operate during holidays due to their essential nature, the rules ensure that employees are fairly compensated for their time and efforts.

For employees working in sectors not exempted, the message is clear: employers must comply with the law or face serious consequences. With these protections in place, the Indonesian government reinforces its commitment to safeguarding workers’ rights, even during the festive season.

 

(Becky)

Tags: EmployeHolidayKemnakerlaborOvertime
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