Provisions for the Granting of Work Facilities on Employees

PERTANYAAN

Are contract employees have the right to obtain allowances on work facilities?

INTISARI JAWABAN

The granting of work facilities or allowances on work facilities as you inquired, principally, is the authority of the company. The provision of work facilities shall be further regulated in work agreements, company regulations, or collective work agreements. Then, do contract employees have the right to obtain work facilities or allowances on work facilities?

Please read the review below for a further explanation.

ULASAN LENGKAP

This article is an English translation of Aturan Pemberian Fasilitas Kerja bagi Karyawan which was written by Haris Satiadi, S.H., and was published on Wednesday, 8 February 2023.

This article below is an update of the article entitled Contract Employee Allowances (Tunjangan Karyawan Kontrak), which was written by Si Pokrol and was first published on Friday, 9 December 2005.

All legal informations which are available through Klinik hukumonline.com have been prepared for educational purposes only and are general in nature (read the complete Disclaimer). In order to obtain legal advice specific to your case, please consult with Justika Partner Consultant.

Previously, it should be noted that although the Law 11/2020 a.k.a Job Creation Law has been revoked and declared invalid by the Perppu 2/2022,[1] all of the implementing regulations of the Job Creation Law, as well as the Laws that have been amended by Perppu 2/2022, remain valid as long as they do not conflict to Perppu 2/2022.[2]

Granting of Work Facilities

Companies may provide work facilities for workers/laborers in certain positions or occupations or for all workers/laborers.[3] The provision of work facilities shall be further regulated in work agreements, company regulations, or collective work agreements.[4]

In the event that the facilities for workers/laborers are unavailable or insufficient, companies may provide compensation for work facilities[5] which are regulated in work agreements, company regulations, or collective work agreements.[6]

"Work facilities" are facilities or equipment provided by companies for certain positions or occupations or for all workers/laborers to support the implementation of the work. What are the work facilities? For example, vehicle facilities, transportation for workers/laborers, and/or communication devices.[7]

Meanwhile, "certain positions or occupations" are the positions or activities that require certain facilities to support the smooth implementation of the duties determined by the companies as the recipients of work facilities.[8]

Work Facilities for Contract Employees

In relation to your question, are contract employees or Fixed Time Employment Agreement (Perjanjian Kerja Waktu Tertentu/ “PKWT”) employees have the right to obtain allowances on work facilities? There are basically no provisions that differentiate between working facilities provided by companies for Indefinite Time Employment Agreement (Perjanjian Kerja Waktu Tidak Tertentu/ “PKWTT”) or PKWT. Therefore, according to our opinion, the granting of work facilities or allowances on work facilities is the authority of employers.

If you, as a contract employee, are expecting allowances on work facilities, we recommend that you should first check the provisions set out in the employment agreements, company regulations, or collective work agreements for where you are working.

This is because the provisions for the granting of work facilities to employees shall be further regulated in work agreements, company regulations, or collective work agreements. If there are provisions, then you as a contract employee or PKWT have the right to obtain work facilities or allowances on work facilities. Conversely, if not regulated, you do not have the right to obtain work facilities or allowances on work facilities.

These are the answers we can provide, we hope you will find them useful.

Legal Basis:

1. Regulation of the Government in Lieu of Law Number 2 of 2022 on Job Creation;
2. Regulation of the Government Number 36 of 2021 on Wages.

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[1] Article 185 Regulation of the Government in Lieu of Law Number 2 of 2022 on Job Creation (“Perppu 2/2022”).

[2] Article 184 Perppu 2/2022.

[3] Article 12 section (1) Regulation of the Government Number 36 of 2021 on Wages (“Government Regulation 36/2021”).

[4] Article 12 section (3) Government Regulation 36/2021.

[5] Article 12 section (2) jo. Article 8 section (2) letter c Government Regulation 36/2021.

[6] Article 12 section (3) Government Regulation 36/2021.

[7] Elucidation of Article 12 section (1) Government Regulation 36/2021.

[8] Elucidation of Article 12 section (1) letter a Government Regulation 36/2021.