Manpower (employee) is one of the important components for companies to be able to continue moving the wheels of the economy. Their welfare should always be taken care of in order to increase productivity and ensure the movement of the economy is maintained and remains stable.

However, it is not rare that their welfare is actually neglected by companies, as one example is by employing workers in overtime work without any reciprocity given. Generally, overtime is known as working time that exceeds the normal limit of working time that should be based on the law or that has been regulated in the employment agreement, but it should be noted that overtime working time also has limitations which will be further elaborated in this article.

Overtime Working Time in Indonesia

In general, labor law in Indonesia is governed under the Law Number 13 of 2003 of Manpower (“Manpower Law”) as amended by Article 81 of Law 6 of 2023 on the Enactment of Government Regulation In Lieu of Law Number 2 of 2022 on Job Creation Law (“Job Creation Law”). Based on these regulations, it is stipulated that the working hours applicable in Indonesia are as follows:[1]

1. 7 hours in a day and 40 hours in a week for 6 working days in a week;
2. 8 hours in a day and 40 hours in a week for 5 working days in a week.

If the work is performed beyond these time limits, it is counted as overtime, except for certain business sectors and occupations regulated by law.

Furthermore, overtime work itself can only be done under the following conditions:[2]

1. Performed within 4 hours in a day with a total of 18 hours in a week;
2. There is consent from the worker either in the form of written consent or through digital media;

However, the above provisions exclude overtime work performed during workers' weekly rest periods or public holidays.

In addition to the above provisions, the Manpower Law, through its derivative regulation, namely Government Regulation Number 35 of 2021 on Temporary Employment Agreement, Outsourcing, Working Hours and Breaks, and Termination of Employment Relationships (“GR 35/2021”) also regulates the exemption of certain business sectors or occupations from the provisions of overtime working time due to indeterminate working time that can be less or more than the working time regulated in the Manpower Law. [3] These certain business sectors or occupations are as follows:[4]

1. Energy and mineral resources business sector in certain regions;
2. General mining business sector in certain operating areas;
3. Upstream oil and gas business activities;
4. Horticulture agribusiness sector; and
5. Fisheries sector in certain operation areas.

Company's Obligation in Employing Workers in Overtime

In connection with overtime work, there are several obligations of the company arising therefrom. Based on Article 29 (1) of GR 35/2021, the company has the obligation to:[5]

1. Pay overtime work wages;
2. Provide opportunities for adequate rest;
3. Provide food and drink of at least 1,400 kcal (kilo calories), if overtime work is carried out for 4 hours or more.

Payment of overtime work wages as referred to above is calculated from each hour of overtime work performed and has its own calculation whose amount depends on the length of overtime, which will be discussed in a separate article.

However, the obligation to pay these wages is exempted for workers in certain groups and positions who are responsible for thinking, planning, implementing, and/or controlling the running of the company, who in return receive higher wages. It should be underlined that the arrangements regarding these certain groups and positions are regulated in a working agreement, company regulation, or joint labor agreement, which if these groups and positions are not regulated within them, the company is still obliged to pay overtime work wages.[6] In addition, mengenai kewajiban memberi makan dan minum sebagaimana yang dimaksud di atas, tidak dapat digantikan dalam bentuk uang atau dalam bentuk lainnya.[7]

Sanction

Companies that violate the provisions of working time, overtime work, or do not perform their obligations arising therefrom may be subject to sanctions in the form of administrative sanctions and criminal sanctions.

1. Administrative Sanction
   Based on Article 61 (1) of GR 35/2021 in the event that the company violates the working time limit or does not carry out obligations towards workers employed during overtime work time as described above, administrative sanctions are imposed in the form of:[8]
   1. Written reprimand;
   2. Limitation of business activities;
   3. Temporary suspension of part or all of the production equipment;
   4. Suspension of business activities;

The implementation of these sanctions will be carried out in stages.

2. Criminal Sanctions

Based on Article 188 of the Manpower Law, companies that violate the provisions referred to in Article 78 (1) of the Manpower Law related to overtime work are subject to criminal sanctions of a minimum fine of IDR 5,000,0000 and a maximum of IDR 50,000,000.[9] However, it should be underlined that the fine sanction does not eliminate the company's obligation to pay rights and/or compensation to the workers themselves.[10]