The Government of Indonesia, through the Ministry of Manpower, has reaffirmed its commitment to protecting workers rights by issuing Minister of Manpower Circular No. M/5/HK.04.00/V/2025 concerning the Prohibition of Withholding Diplomas and/or Personal Documents Belonging to Workers/Laborers by Employers.

This circular was issued in response to a recurring practice in the workforce, where employers withhold personal documents such as diplomas, passports, and competency certificates as a form of guarantee during employment. This practice is considered to be in conflict with the principles of human rights and labor standards, which guarantee workers the freedom to obtain decent work and legal protection over their personal property.

The circular outlines several key points:

1. Employers are prohibited from requiring and/or withholding diplomas and/or personal documents of workers as a guarantee for employment. Personal documents referred to include original documents such as competency certificates, passports, birth certificates, marriage certificates, and vehicle ownership documents.
2. Employers are prohibited from obstructing or hindering workers from seeking and obtaining better employment opportunities.
3. Prospective and current workers are encouraged to carefully review and understand the contents of employment agreements, particularly if there are clauses requiring the submission of diplomas and/or personal documents as a condition for employment.
4. In cases where there is an urgent and legally justified need for requiring the submission of diplomas and/or competency certificates by the employer, it can only be done under the following conditions:
   a. The diploma or competency certificate was obtained through education or training funded by the employer under a written employment agreement.
   b. The employer must guarantee the security of the diploma and/or certificate, and compensate the worker in the event that the documents are damaged or lost.

This Circular is addressed to Governors across Indonesia, who are expected to relay it to Regents/Mayors and other relevant stakeholders to ensure its implementation on the ground. This measure is expected to promote a more humane and fair enforcement of labor norms. The practice of withholding personal documents as a means of pressure or control over workers must be ended, as it contradicts fundamental principles of human rights and worker protection.

With the issuance of Minister of Manpower Circular No. M/5/HK.04.00/V/2025, the government firmly asserts that the withholding of workers personal documents by employers is a prohibited practice, except under specific circumstances legally regulated. This circular represents a significant milestone in fostering a healthy, equitable industrial relations climate that respects workers rights.

If you, a prospective client, have further inquiries about the topic discussed above, Schinder Law Firm is one of the leading corporate law firms in Indonesia, with extensive experience handling similar matters. Our team of professional corporate and civil lawyers makes us one of the top consulting firms in Indonesia. Feel free to contact us at info@schinderlawfirm.com for further consultation.

Author:
Dewi Susanti