Documents Required to be Shown in a Manpower Labor Audit

Below we describe the documents which are generally required to be shown to the manpower officials on labor audits. The document requirements may slightly vary depending on the location and the business type of the foreign investment company.

Documents related to the legality of the company

Investment licenses, such as the principle permit (Izin Prinsip), business license (Izin Usaha)
The deed of establishment of the company, including its amendments of the articles of association. Usually the latest amendment of the articles of association is sufficient. However we advise clients to prepare all amendments
The organization structure of the company
The manpower report, better known as wajib lapor ketenagakerjaan
The company regulations or collective labor agreement, whichever is applicable in the company
The labor inspection certificate book (if any)

Documents related to work time and rest time

An overview of absence of the employees
An overview of annual leave of the employees
An overview of leave take due to pregnancy, birth and miscarriage

Documents related to employment of employees and subcontractors

Employment agreements of all employees of the company, including
Employment agreements for permanent employees
Employment agreements for fixed term employees
Work contracts with subcontractors
Outsourcing agreements related to the services which are outsourced to third parties

Documents related to wages

An overview of the wages of all employees
An overview of the overtime orders from the company to the employees
An overview of the calculation of overtime wages for the overtime hours worked by employees

Documents related to security of manpower

Proof of membership and payment of BPJS (social security) of all employees
Proof of membership and payment of JSHK (social security outside working hours) of all employees

Documents related to the use of foreign workers

The original RPTKA for each foreign worker
The original IMTA for each foreign worker
Proof of payment of the DPKK for each foreign worker
Appointment letter(s) of Indonesian labor companion (TKI pendamping) for each foreign worker and proof of implementation of training and education of the local labor companion
Existence report of the foreign workers
Education certificates of the foreign workers
The original KITAS of each foreign worker
A copy of passport of each foreign worker
Report on the use of foreign workers

Besides the above requirements, manpower officials often request in labor audits documents related to the occupational health and safety. These documents generally need to be supplied by the owner/ management of the building where the PT PMA holds its office.

Consequences of Non-Compliance

In case companies are not able to show the above documents to labor inspectors it may have severe consequences. Sanctions, depending on the type of violation, can include:

1. Deportation and deterrence of foreign workers;
2. Restrictions on companies, such as a restriction to hire foreign workers for a certain period of time; and
3. Criminal sanctions, with penalties ranging between IDR 10.000.000 and IDR 500.000.000 and possible imprisonment of up to 5 years.

Because of the severity of the sanctions in case of non-compliance by companies, legal assistance before and during the labor audits process is highly recommended.

This column is provided by PNB Immigration Law Firm Indonesia