Compensation Payment on the Change of Employment Agreement in Indonesia
The implementation of the Job Creation Law (“Omnibus Law”), which was enacted in 2020, has made a significant change to the law and regulation in Indonesia, including the Company Law, Investment Law in Indonesia, and the Indonesian Labor Law. The Job Creation Law makes it easier to attract foreign investment to Indonesia. Following to the Job Creation Law, the Government of the Republic of Indonesia has enacted Government Regulation No. 35 of 2021 on Fixed Term Employment, Outsourcing, Working Hours and Rest Times and Termination (“GR 35/2021”).