Leave Application Guide for Singapore Employers Hiring Indonesian Employees

Hiring Indonesian employees can bring a wealth of talent and diversity to your team, but it also comes with the responsibility of understanding their leave entitlements according to the Republic of Indonesia Manpower Law No. 13 of 2003.

This law has been recently updated with the Republic of Indonesia Law No. 11 of 2020 concerning the Omnibus Law or Job Creation Law. Therefore, every employee needs to be aware of this, as leave entitlement is a mandatory right for employees.

The Law No. 13 of 2003 regulates various types of leave under Chapter 10 concerning Wages, Protection, and Welfare. These include annual leave, maternity leave, public holiday leave, and menstrual leave. What are the regulations and provisions of this law regarding employee leave?

According to the Manpower Law, one of employees' rights is annual leave. The minimum entitlement is 12 days after 12 consecutive months of employment. Annual leave refers to paid resting periods provided by the company, aligned with legal requirements.

Annual leave is structured as follows:

• Collective leave is taken during Eid al-Fitr.
• Remaining days after collective leave can be used by employees with unit leader approval.

Annual leave cannot coincide closely with collective leave unless approved by the unit leader. Unused annual leave expires if not taken within the current year.

Employees unable to take annual leave due to work reasons can carry over unused days to the next year, with a maximum accumulation of 12 days; any excess days expire.

Different companies have varying rules for annual leave, depending on their policies. For example, some companies deduct annual leave during government-designated collective holidays, while others offer these holidays optionally, reducing annual leave quotas if taken.

Flexibility in managing annual leave, within government-mandated limits, can be an attractive benefit for top candidates.

This is because the implementation of annual leave can be further regulated in employment agreements, company regulations, or collective labor agreements.

In addition to annual leave, Article 79 paragraph (2) letter d of the Manpower Law also regulates long leave or extended rest periods.

"Extended rest of at least 2 months, taken in the seventh and eighth years, with 1 month each for employees who have worked continuously for 6 years in the same company, provided that the employee is not entitled to annual leave for 2 consecutive years and subsequently applies to each multiple of 6 years of service."

This right can be granted to employees in certain companies as specified by the Minister's Decision.

Every employee who has worked continuously for at least 5 years, and each subsequent multiple of 5 years, is entitled to one month of extended leave.

Extended leave must be taken all at once for one full month or twice for two weeks each within the same year.

During the year in which extended leave is taken, the employee is not entitled to annual leave.

Extended leave that is not taken expires at the end of the seventh year.

Collective leave initially referred to special holidays for government office workers, such as embassy staff, ministry officials, and state-owned enterprise (BUMN) employees. However, its implementation now extends beyond government institutions, with many private companies also adopting it.

The specifics of collective leave implementation are further regulated by company policies. For example, whether collective leave deducts from employees' annual leave entitlements is typically addressed in these regulations.

Menstrual leave, as mandated by Article 81(1) of the Manpower Law No. 13 of 2003, is a mandatory leave entitlement for female employees.

"Female workers who experience illness during menstruation and inform the employer are not obliged to work on the first and second days of menstruation."

Menstrual leave applies specifically to female employees who feel unwell during menstruation, typically on the first and second days. Some companies have implemented this type of leave, allowing female employees who are menstruating and feeling unwell to provide a doctor's note for sick leave or rest.

Pregnancy and maternity leave are essential rights for female employees in Indonesia, governed by Law No. 13 of 2003. Typically, this leave spans approximately 6 weeks before and after childbirth, though some companies may accumulate it to 3 months (12 weeks). Additionally, spouses supporting during childbirth currently receive 2 days off.

Leave due to childbirth or miscarriage is structured as follows: female employees are entitled to 1.5 months of leave both before and after childbirth. In cases of miscarriage, the entitlement is similarly 1.5 months or as certified by a medical professional. If this leave coincides with collective leave, it does not count towards the collective leave period.

Employees on childbirth or miscarriage leave receive their wages or salary, with deductions for meals, transportation, and allowances for those in structural or functional positions.

To apply for this leave, female employees must submit a written request to their unit leader at least one week in advance, and upon approval, submit it to the Performance and Professorial Rank Division. After completing their leave, they must report back to their unit leader and the Human Resources to resume duty.

Sick leave provides employees with necessary rest to recover physically. Governed by Article 93(2)(a) of the Manpower Law, companies are required to pay employees during sick leave.

For permanent employees with prolonged illness, sick leave is granted gradually based on health assessments:

• First 4 months
• Second 4 months
• Third 4 months

If the employee hasn't recovered after 1 year, they may receive a maximum 4-month extension of sick leave before termination.

If you feel tired or unwell, don't hesitate to request sick leave. This type of leave allows employees to rest when unable to perform their duties due to illness or poor health.

These policies are detailed in Law No. 13 of 2003, Article 93 regarding Manpower. According to this law, companies must continue paying employees during sick leave, ensuring employees have the opportunity to rest when ill or unwell.

The wage rules for sick leave are as follows:

• 100% for the first 4 months
• 75% for the second 4 months
• 50% for the third 4 months
• 25% for the subsequent 4 months before termination by the employer.

Under the Manpower Law, specifically Article 93(2) and (4), leave for important reasons is defined as follows:

• Marriage of the employee: 3 days
• Marriage of the employee's child: 2 days
• Circumcision of the employee's child: 2 days
• Baptism of the employee's child: 2 days
• Miscarriage or childbirth of the employee's spouse: 2 days
• Death of parent, parent-in-law, spouse, child, or child-in-law: 2 days
• Death of a household member: 1 day

Employees are granted permission to leave their employment with special approval from company for performing Hajj once and Umrah once, or for other religious obligations.

Subsequent Hajj and Umrah trips require taking leave without pay.

To obtain this special permission, employees must submit a written request to their unit leader using a designated application form. This special leave is provided for up to 40 calendar days for Hajj and 12 calendar days for Umrah.

During this special leave period, employees receive their full salary or wages.

1. How can employees apply for leave in Indonesia?

Employees should follow their company's specific procedures for leave applications, which typically involve submitting a leave request form or using an internal leave management system.

2. Are employees entitled to paid leave for religious observances?

Yes, Muslim employees performing the Hajj pilgrimage are entitled to paid leave. Additionally, employers may provide leave for other religious observances based on company policies.

3. Can unused annual leave be carried over to the next year?

This depends on company policies. Some employers allow the carryover of unused leave, while others may require employees to use their leave within the same year.

4. Is sick leave paid in Indonesia?

Yes, employees are entitled to paid sick leave as certified by a medical practitioner. The exact number of sick leave days is typically outlined in employment contracts or company policies.

5. Are public holidays paid in Indonesia?

Yes, employees are entitled to paid leave on public holidays. If they work on a public holiday, they should receive additional compensation or substitute leave.

The increasing trend of work-life balance has highlighted the attractiveness of offering leave benefits beyond government-mandated minimums to attract top talent. Here are some ways to enhance leave benefits:

• Annual leave can be taken after completing the probation period, without waiting for 12 consecutive months of service.
• Annual leave provided exceeds legal requirements, tailored to company policies.
• Optional collective leave policies for employees, allowing flexibility in choosing vacation times, including off-peak seasons.
• Offering employee leave is not only about compliance with legal obligations but also ensuring sufficient rest time to sustain productivity.

To maintain productivity, adequate rest is as crucial as hard work.

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