Can probation be extended? Indonesian Labor Legal Guidelines

The probation period is a crucial period for employees and companies. For employees, this is an opportunity to show abilities and adapt to the new work environment. For companies, this is the time to assess employee suitability with the company’s position and culture. However, what if at the end of the probation period, the company feels that it takes more time to evaluate? Can probation be extended? Let us dive more into labor law guidelines in Indonesia.

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What is a probation time?

The probation period is the initial period of the work of an employee in a company that aims to provide opportunities for both parties, both employees and entrepreneurs, to evaluate the suitability of work. During this period, employees will be evaluated their performance, attitudes, and abilities adapt to the duties and work environment. On the other hand, employees can also assess whether the work and the company are suitable for them.

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The deadline for the probation period according to the Manpower Law

It is important to understand that employment law in Indonesia explicitly regulates the duration of the probation period. Based on Article 60 paragraph (1) of Law Number 13 of 2003 concerning Manpower (Manpower Law), the probation period can only be required for a maximum of 3 (three) months. This provision applies to an indefinite time work agreement (PKWTT) or permanent employee.

How to work agreement for a certain time (PKWT)? It is important to know that there is no probation or probation period for contract employees. This provision is regulated in Article 81 number 14 of Law Number 6 of 2023 concerning the Establishment of Government Regulation in lieu of Law Number 2 of 2022 concerning Work Copyright to Law, which changed Article 58 of the Manpower Law.

In this article it is regulated that, PKWT cannot require a work trial period. If in practice there are requirements for the work trial period in PKWT, then the work trial period required is null and void by law and the period of work is calculated.

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Can probation be extended?

Based on very clear provisions in Article 60 paragraph (1) of the Manpower Law, the probation period must not be extended. If the probation period exceeds 3 months, then automatically by law, employees are considered to have been permanent employees since the end of the 3 -month period.

Companies that extend the probation period after 3 months will be considered to violate the provisions of the law, and the extended probation work agreement becomes null and void.

Legislation regarding employment in Indonesia does not regulate sanctions for companies if they apply the probation period of more than 3 months. However, both workers and entrepreneurs are required to comply with the Manpower Law and their changes, in this case complying with the probation period of a maximum of 3 months.

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Employee rights during the probation period

Although in probation, employees have rights protected by law. These rights include:

1. Wages are appropriate. Employees have the right to receive wages in accordance with the agreement and cannot be lower than the minimum wage.
2. Working time. Employees have the right to work time in accordance with statutory regulations or work agreements.
3. Social Security. Although not yet a permanent employee, the company still has an obligation to register employees in the social security program, such as BPJS Employment, in accordance with applicable regulations.
4. Fair treatment. Employees are entitled to the same treatment and not discriminatory.

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Legal implications if the probation period is extended

Companies that are determined to extend the probation period exceeding the time limit of 3 months will face serious legal implications. These implications include:

1. Employee status becomes permanent. As mentioned earlier, if the probation period is extended, employees are automatically considered as permanent employees since the first day of work or no later than 3 months of the initial probation ends.
2. Lawsuits. Employees can submit lawsuits to the Department of Manpower or Industrial Relations Court if their rights are violated due to an unauthorized extension of the probation period.
3. Company reputation. Violations of employment regulations can damage the company’s reputation and reduce the confidence of prospective employees and the community.

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(This article has been edited by the perqara editorial team)

Legal basis

1. Law Number 13 of 2003 concerning Manpower;
2. Law Number 6 of 2023 concerning the Establishment of Government Regulations in lieu of Law Number 2 of 2022 concerning Work Copyright into Law.