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Collective Work Agreement

Background

In the world of work, before the employment relation is occurred between Employer and Worker, an agreement is made which will act as the basis to meet the right and obligation of each party (Employer and Worker). The Law Number 13 of 2003 on Labor ("Labor Law") sets out the work agreement, and also regulating on collective work agreement. Under the Article 1 number 21 of Labor Law, the collective work agreement is an agreement as a result of negotiation between worker union/laborer union or several worker union/laborer unions which are registered in a government agency that is responsible in the employment with employer, or several employers or the association of employer which specifies the work requirements, rights and obligations of both parties.

Definition of Worker Union/Laborer Union

Based on the definition above, collective work agreement regulates the agreement between worker union/several worker unions and the employer/several employers/employers association. The definition of worker union/laborer union is in the Article 1 number 17 of Labor Law is an organization which is established from, by, and for the worker/laborer either in the company or out of the company, which is free, open, independent, democratic, and responsible to fight for, defend and protect the right and the interest of worker/ laborer and to improve the welfare of worker/laborer and their family.

Worker union/ laborer union or several worker unions/ laborer unions shall be recorded and have been registered in the responsible agency for employment, namely the Ministry of Manpower and Transmigration of Republic of Indonesia.

The Requirements and Procedures of Collective Work Agreement’s Drafting

In 1 (one) company, it may only be created 1 (one) collective work agreement that is valid for all of workers/ laborers in the company. The creation of collective work agreement shall be based on a good faith between the employer and worker, which means there must be honesty and transparency of the parties and voluntary/ awareness without any pressure from one party to another party.

If in the deliberation, the arrangement of collective work agreement does not reach an agreement, its settlement is performed through the procedure of industrial relation dispute settlement. The settlement which is through the procedure of industrial relation dispute settlement may be performed through the institution of industrial relation dispute settlement.

The collective work agreement shall be made with Latin alphabet and use Indonesian Language. In the matter of collective work agreement that is not created in Indonesian Language, then the collective work agreement shall be translated into Indonesian Language by a sworn translator. If the collective work agreement is made in Indonesian Language, and translated into other languages and inflicts the different interpretation, then the applicable collective work agreement is which is made in Indonesian Language.

Alsha Alexandra Kartika

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