For some large companies, the terms Company Regulation (PP) and Collective Labor Agreement (PKB) are familiar. Both documents regulate the order or determination of rights and obligations for the company and its employees. However, did you know that there are some differences between these documents? The differences between these two documents must be understood so that the business runs smoothly and safely. Let’s find out the differences between PP and PKB on this page. Please refer to the bottom.
Definition
Based on Article 1 Point 20 of Law Number 13 of 2003 concerning Manpower (Manpower Law), it is stated that PP is a regulation made in writing by employers that contains working conditions and company rules. Meanwhile, a CLA is an agreement that is the result of negotiations between labor unions or several labor unions that are registered with the agency responsible for the field of manpower and employers, or several employers or associations of employers that contain working conditions, rights and obligations of both parties.
Creation or Compilation Initiative
Article 109 of the Labor Law PP is prepared by and is the responsibility of the employer concerned. Meanwhile, CLAs are prepared by trade unions/labor unions or several trade unions/labor unions that have been registered with the agency responsible for manpower with employers or several employers. The CLA is prepared in a deliberative manner and must be made using the Indonesian language in writing (Article 116 of the Manpower Law). So, PP is only drafted by employers but PKB must be drafted by employers and labor unions.
Agreement between Employers and Workers
In the preparation of PP, employers do not need an agreement with workers but must pay attention to suggestions and considerations from workers/labor representatives in the company concerned in accordance with Article 110 of the Manpower Law. This is regulated differently in the preparation of a PKB where there must be mutual agreement through a negotiation process carried out in a deliberative manner.
Disputes
Suggestions and considerations submitted by labor unions in the preparation of PP are not coercive, which means they do not have to be fulfilled. Therefore, the drafting of the PP cannot be disputed. Meanwhile, in the making of the PKB, employers and workers must find common ground in order to reach an agreement. If no agreement is reached, then the settlement is carried out through the industrial relations dispute resolution procedure (Article 117 of the Labor Law).
Expiration and Extension or Renewal
The PP at least contains the rights and obligations of employers, the rights and obligations of workers/laborers, working conditions, company rules, and the period of validity of the PP. The validity period of the PP is a maximum of 2 years and must be renewed after its expiration in accordance with Article 111 Paragraph 3 of the Manpower Law. During the validity period of the PP, if the labor union in the company wants to carry out negotiations to make a PKB, the employer is obliged to serve. Meanwhile, the PKB at least contains the rights and obligations of employers, the rights and obligations of trade unions/labor unions and workers/laborers, the period and effective date of the PKB, and the signatures of the parties making the PKB. The validity period of the PKB is also a maximum of 2 years. The PKB can then be extended for a maximum period of 1 year based on a written agreement between the employer and the labor union.
KH Contact
The above matters must be considered by entrepreneurs in running their business. Fulfillment of these documents is a form of employer compliance with applicable regulations. Does your company have PP and PKB? Still confused? Immediately consult your company and labor law issues to Kontrak Hukum, we will provide the best solution for you. Visit and contact:
