Fixed-term Employment Agreement (PKWT) is one type of employment contract that is often used in the world of work in Indonesia.
For those of you who are planning to hire employees with PKWT status, it is important to understand how to make this agreement legal.
Although seemingly simple, drafting a non-permanent contract requires attention to detail and an in-depth understanding of the applicable laws and regulations.
In this article, you will learn the essential steps to drafting a valid PKWT and some tips to ensure that the agreement is not at risk of violating the law.
What is it Fixed-Term Employment Agreement (PKWT)?
Before we get into the technicalities of making PKWT, let’s first understand what is meant by a Fixed-Term Employment Agreement.
A fixed-term employment contract is a work agreement between an employee and an employer that has a specific period of time.
This means that this agreement is temporary and will end after an agreed period of time or after the completion of certain work. Non-permanent contracts are usually used for temporary work, such as certain projects, seasonal work, or work that is only needed for a certain period of time.
However, there are terms and conditions that must be met in order for PKWT to be legally valid.
Legal basis of non-permanent contracts
Fixed-Term Employment Agreements have been stipulated in Law No. 13 of 2003 concerning Manpower, as well as Government Regulation No. 35 of 2021 concerning Fixed-Term Employment Agreements, Outsourcing, Working Time and Rest Time, and Termination of Employment.
It is important for you to understand these regulations so that you don’t make any missteps in drafting PKWT. According to PP No. 35 of 2021, there are several important things that must be considered regarding non-permanent contracts:
- Maximum Duration: Non-permanent contracts may be held for a maximum period of five years, including extensions.
- Job Type: Non-permanent contracts can only be made for certain temporary jobs or jobs that can be completed within a certain time.
- Renewal and Renewal: Non-permanent contracts can be extended or renewed, but there are certain restrictions that must be adhered to.
Important Components of Non-permanent Contracts
To make a valid PKWT, there are several components that must be present in the agreement, namely:
1. Identity of the Parties
PKWT must include the complete identity of both parties, namely the employer and the worker.
This includes full names, addresses, and identity numbers (such as ID cards for workers).
This is important to ensure that both parties involved have clarity and there is no ambiguity regarding who is bound by this agreement.
2. Type and nature of work
Non-permanent contracts must explain in detail the type of work to be performed by the worker.
You must ensure that the work complies with the provisions in the applicable laws and regulations regarding non-permanent contracts.
For example, the work must be temporary or only required for a certain period of time.
3. Term of Agreement
One of the main characteristics of non-permanent contracts is a clear time limit.
The term of the agreement must be clearly specified in the PKWT, including the start and end dates of the agreement.
You also need to pay attention to the provisions regarding the extension or renewal of the agreement if needed.
4. Rights and Obligations of Parties
Non-permanent contracts must include the rights and obligations of each party involved.
This includes the worker’s right to receive wages and leave, as well as the worker’s obligation to carry out their work in accordance with the agreement.
On the other hand, the employer also has an obligation to pay wages on time and provide a decent working environment.
5. Wages and Benefits
This component is very important and must be clearly stipulated in the PKWT.
You need to determine the amount of wages that will be received by workers, as well as other benefits that may be provided.
Make sure that the amount of wages is in accordance with the minimum wage provisions that apply in the region.
6. Provisions for Termination of Employment
PKWT must regulate the provisions for termination of employment (PHK).
This agreement must include the reasons that can lead to termination, as well as the rights of workers in the event of termination.
Keep in mind that although PKWT is temporary, there are still legal provisions that must be followed in terms of termination of employment.
Steps to Make a Legal PKWT
After understanding the important components of a non-permanent contract, here are the steps you can follow to create a valid non-permanent contract:
1. Consultation with Legal Experts
The recommended first step is to consult with a legal expert or service that is experienced in the field of employment.
This way, you can ensure that the agreement made is in accordance with applicable regulations and does not contain clauses that can harm either party. If you need help in making PKWT, you can use the services of making a Specific Time Work Agreement available.
With such professional assistance, it will help you in drafting PKWT that complies with legal provisions and protects your interests as an employer.
2. Draft Draft PKWT
After consultation, the next step is to develop draft PKWT. Draft This should include all the important components discussed earlier.
Ensure that each clause is clearly written and does not raise any red flags. multiinterpretation.
Sebaiknya, draft This is also reviewed by a legal expert before being approved by both parties.
3. Agreement Signing
After draft approved, the next step is the signing of the agreement by both parties.
This signing must be done on a stamp duty to give legal force to the agreement.
Also ensure that all parties involved keep a copy of the agreement as documentation.
4. Registration with the Manpower Office
The signed PKWT should be registered with the local Manpower Office.
Although it is not mandatory, this registration will provide additional protection and make it easier in the event of a dispute in the future.
Common Mistakes in Making PKWT
Although making a non-permanent contract seems simple, there are some common mistakes that you should avoid, such as:
- Not in accordance with the type of work: Non-permanent contracts are often made for types of work that do not actually qualify for non-permanent contracts, such as permanent jobs.
This can cause the agreement to become null and void. - Inappropriate Duration: Making non-permanent contracts with a duration that exceeds the maximum allowed is also a common mistake.
Note that non-permanent contracts can only be extended or renewed within a certain time limit. - Unclear Clauses: Clauses in PKWT must be written clearly and not cause ambiguity.
Vagueness in the agreement may lead to disputes in the future.
Why Use PKWT Making Services?
Making a PKWT that is legal and in accordance with the laws and regulations does require a deep understanding of labor law.
Therefore, using the services of making a Specific Time Work Agreement can be the right solution for those of you who want to ensure that the agreement made is in accordance with the applicable provisions. This service not only assists in the drafting of documents, but also provides the necessary legal consultation to avoid mistakes in making PKWT.
By using services such as those provided Contract LawAt PKWT, you will get help from experienced experts in drafting a legal PKWT that suits your business needs.
In addition, you can also get better legal protection and avoid the risk of disputes in the future.
So, never hesitate to consult with us so that the agreement you make is in accordance with applicable regulations and can provide optimal legal protection.
