There are various types of employment in Indonesia. One of
the types is Daily Work Agreement or known as Freelance. It needs to be
understood, the definition of Freelance based on Article 10 paragraph (1) and
paragraph (2) Decree of Minister of Manpower Number 100 of 2004 (“Kepmenaker 100/2004”), in Chapter V of Freelance
is as follows:
- “ (1)
For certain jobs changing in terms of time and volume of work and wages are
based on attendance, it can be done by contract or daily work freelance.”
- “ (2)
Daily work agreement as referred to in paragraph (1) performed with the
provisions of the workers/laborers work less than 21 (twenty one) days within 1
(one) month.”
Based
on the citations above, it is clearly known whereas before stipulating
Freelance, it shall be confirmed whereas the job that is carried out is the job
changing in terms of time and volume of work. Moreover, the working hours in
Freelance is less than 21 (twenty one) days in 1 (one) month. Furthermore, it
is known whereas Freelance may be changed to Indefinite Time Working Agreement
(“PKWTT”) if it meets the qualifications as stated in Article 10 paragraph (3)
Kepmenaker 100/2004 that stated whereas:
- “ (3)
In the event that the workers/laborers work 21 (twenty one) days or more for 3
(three) consecutive months or more, then the casual labor agreement turned into
PKWTT.”
Furthermore,
it should be taken into account that Freelance must meet the administrative
requirements as mentioned on Article 12 paragraph (1) and paragraph (2)
Kepmenaker 100/2004, which are:
- “ (1)
Employers who employ workers/laborers in jobs as referred to in Article 10
shall issue daily work agreement in writing with the workers/laborers.”
It
shall be confirmed whereas Freelance must be made in writing, and Freelance at
least meet the requirements as referred to Article 12 paragraph (2) which
stated:
- “ (2)
Daily work agreement/Freelance as referred to in paragraph (1) may be made in
the form of a list of workers/laborers who do the work as referred to in
Article 10 at least the following:
- name/address of company or employer;
- name/address of workers/laborers;
- type of work performed;
- amount of wages and/or other benefits.
Wages / Incomes and Allowances
Scheme
of Freelance’s wages is regulated in a Government Regulation Number 78 of 2015.
Wages of Freelance workers may be stipulated based on 2 (two) schemes, which
are: wages based on time, and wages based on result. Other than wages, there
are other components which are Religious Holiday Allowance dan Social
Allowance. The calculation for the components concerned are as follows:
Workers
with 12 (twelve) months or more of working period which is calculated based on
average of wages in the latest of 12 (twelve) months before Religious Holiday;
Workers
with working period less than 12 (twelve) months, wage of 1 (one) month is
calculated based on average of wages in working period.
- Thus,
those are the essential points that shall be taken into account in the implementation
of Freelance based on working relation between the Entrepreneurs and Workers.
- It
needs to be understood, by the issuance of Law Number 11 of 2020 concerning Job
Creation, there has been draft of government regulation regulating freelance
provisions. In principle, there is no modification to explanation as mentioned
above. However, shall the draft of government regulation is issued, then it
would become the effective law binding as Freelance provision.
This Article is generally made for the purpose of ANR Law Firm
publication only and should not be treated as legal advice for your legal
problem. Shall you have any further question, kindly contact the Advocate who
authored this article at anrlawfirm@anr-lawfirm.com.
Author: Sarah Sylvania Hutagalung, S.H.