Category: Human Resource Services
Written by Samuel Sri Kurnia on 20/07/2022
The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.
Human Resource (HR) consultants play a critical role in reviewing the overall management of an organization. HR consultants aim to advise clients on creating more efficient and effective business and HR policies. HR consultants offer services such as professional consulting, education, training, and HR solutions for business clients. These services are done through diverse tasks from business research, analysis, planning, and management counseling. Compared with full-time HR executives, in terms of budget constraints, teaming up with an HR consultant is profitable.
With this service, we can give advice and assist you with the preparation and registration of company policy. We will also ensure that they comply with the regulation.
HR consultants are expected to be talented problem solvers. Thus, companies count on them to create advice on management, hiring procedures, and other urgent issues related to human resources. They develop solutions through different methods, ranging from providing employees with training and support to creating an efficient payroll system. HR consultants also solicit enterprises on creating effective human resource capabilities for long-term vision. It’s often done through designing extensive programs or collecting data to investigate a specific issue. This job description makes them different than an HR specialist, who usually focuses on hiring resources or administrative roles. HR consultants need to possess the ability to switch and implement solutions within different HR sub-departments.
Some of the most common HR consultant responsibilities are:
Different from an HR director or an HR manager who is hired for internal use, an HR consultant is often hired externally on a contractual basis. This allows them to act as an external agent and be more open to opportunities and clients. In exchange, they have to constantly hunt for job opportunities for polishing their skills and career path.
A primary incentive for businesses to hire an HR consultant is the financial effectiveness of the arrangement. An organization spends fewer resources hiring an HR consultant than offering full-time employment to an HR specialist or manager. As a result, the consultant has fewer commitments with the company and simultaneously counsels other companies as well.
By engaging with specialist HR consultants, companies can benefit from budget efficiency to getting insights into HR best practices, industry benchmarking, and advances in technology that improves productivity and employee experience. The details of the benefits are as follows:
As HR Consultants revolve around choosing the best candidates to support the company, both parties should first understand employment and labor laws in Indonesia. Employment and labor laws in Indonesia are originally governed by Law No. 13/2003 concerning Manpower. It’s also recently revised by Law No. 11/2020 concerning Job Creation Law). The Labor Law (Law No 13/ 2003) regulates all employment in Indonesia. The revision, Job Creation Law (Law No 11/2020, the Omnibus law) has also made changes to fixed-term contracts in order to organize the labor pool in Indonesia.
Employers must provide the following rights for the hired employees in Indonesia:
Specifically for foreign workers, the hiring process is regulated through Indonesia’s Ministry of Manpower’s (MoM) Regulation No. 8 Year 2021 concerning Employment of Foreign Workers. MoM Reg 8/2021 is a stipulation to Government Regulation 34/2021 and provides the requirements for businesses in detail for hiring foreign workers. For a local company to employ a foreign worker, they must prepare a Foreign Worker Utilization Plan (Rencana Penggunaan Tenaga Kerja Asing/RPTKA). This document details the specific work, position, and length of employment the foreign employee will undertake in Indonesia. The RPTKA now also serves as the basis for the MOM to grant visas and stay permits.
The permitted position for expatriates in Indonesia is elaborated further in Indonesia’s Ministry of Labor issued Regulation No. 228 of 2019 (Reg 228, 2019). The new regulation widens the number of positions open to expatriate workers, consolidates the list of positions into one, and simplifies the approval process for foreigners and their employers. Other changes have also been made to the immigration laws under the new Omnibus Law.
According to Article 1 number 14 of Law No. 13 of 2003 concerning Manpower (Manpower Act), an Employment Contract is an agreement between workers/laborers and employers or employers that contains the terms of work, rights, and obligations of the parties. An employment relationship between employers and workers/laborers who have elements of work, wages, and orders arises through this employment contract.
Employment contracts in Indonesia are classified into a fixed or indefinite terms.
In Indonesia, the employee’s rights are governed through different laws and regulations such as follows:
The process of hiring employees in Indonesia is as follows:
Indonesian Labor Law regulates the maximum working hours, minimum pay, leave allowance and termination requirements of any employment. The complex employment regulation may make it difficult for newly established businesses to adhere to the regulation when making a human resource policy, company policy, and other employment agreements.
We advise and assist our clients with the preparation and registration of company policy. We also ensure that they comply with the regulation. Foreign companies who have yet to establish a presence in Indonesia but require a local employee to perform remote work such as programming or market research may use our service that allows our clients to be more cost-efficient, especially during the preliminary market research stage before the client decides whether to invest in Indonesia.
Contracts must be in writing and in the Indonesian language or in a bilingual format. Given new legislation governing the use of Indonesian language in contracts generally, it is recommended that both fixed term (PKWT) and permanent (PKWTT) employment agreements be executed in Indonesian or in a bilingual Indonesian and English format. It is prudent to assume that in the event of a conflict or inconsistency, the Indonesian-language version shall prevail.
Although it’s not mandatory, permanent members of staff should ideally have a written contract. Understanding Manpower Regulations are a key aspect of operating a successful business in Indonesia. This will ensure your employees are fairly treated, and reduce your risks of labor lawsuits.
Workers may need to apply for an Indonesia business visa if they need to travel to Indonesia for business. Indonesia offers both single-entry and multiple-entry business visas, provided to foreigners who wish to attend meetings or conferences, sign a contract, or engage in any other business-related activity in Indonesia. These visas, however, do not entitle you to work for an Indonesian employer. There are a variety of visas foreign visitors can apply for depending on their purpose of visit.
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