COVID-19: Protecting Employees and Ensuring Business Continuity in Indonesia
Due to the rapid spread of the Coronavirus (“COVID-19”) in Indonesia, on 17 March 2020 the Ministry of Manpower issued Circular Letter No. M/3/HK.04/III/2020 in relation to employee’s protection and business continuity in the middle of the prevention and control of the COVID-19 outbreak (“Circular Letter”).
This Circular Letter is addressed to all governors in Indonesia implement this letter locally through the local regents and mayors requiring companies within their jurisdiction to comply with this Circular Letter. The requirements stipulated in the Circular Letter is as follows:
To conduct all means to prevent and minimise disease contamination within the workplace
In order to minimise the outbreak risk within the workplace, every company is required to provide guidance and supervision relating to the implementation of Occupational Safety and Health (Keselamatan dan Kesehatan Kerja). The guidance shall include an effort in preventing COVID-19 in the workplace by promoting healthy and clean behavior, empower the advisory committee and to optimise all of work healthcare service.
Further, any case or suspected cases of COVID-19 in the workplace must be listed and reported to the relevant agencies and every suspected employee or employees who are experiencing illness due to COVID-19 must be treated in accordance with policies issued by the Ministry of Health.
Salary policies due to COVID-19 outbreak
Every company must still pay the employee’s salary in full for any employees who are infected by, suspected to have, isolated or under monitoring of COVID-19, which cause them not be able to work. This must be based on a doctor’s letter.
Ensuring business continuity to adjust employee’s salary
In the event a company has to limit its business operations due to government policies for the prevention and control of COVID-19 in their respective business regions, the company is allowed to adjust or reduce the employee’s salary and change the salary payment method based on the work agreement between the employer and employee or company regulation.
If you have any questions or require any additional information, please contact Agnesya Narang and Sianti Candra of Roosdiono & Partners (a member of ZICO Law).
This alert is for general information only and is not a substitute for legal advice.