• Stricter Regulation of Employer Compliance Checks Implemented
  • August 18, 2015
  • Law Firm: Fragomen Del Rey Bernsen Loewy LLP - New York Office
  • Local Ministry of Manpower (MOM) officers who conduct worksite compliance inspections are now required to abide by stricter standards, according to a new Circular Letter issued by the MOM. Officers are now obligated to conduct routine inspections at companies that employ foreign workers and must check for new corporate and immigration documentation.

    The MOM has indicated that employers must maintain the following documents at the workplace:
    • Foreign Manpower Utilization Plan (RPTKA);
    • Valid Work Permits (IMTA) (the job title must match the foreign worker’s job description and must indicate the foreign worker’s work location);
    • Indonesian co-laborer appointment letters;
    • DPKK (Skills and Development Fund) payment receipts;
    • Foreign workers’ passports and KITAS (Limited Stay Permit) cards;
    • Foreign workers’ educational or competency certificates and work experience record (which must match the foreign workers’ job titles as indicated in work permits);
    • The education and training syllabus relating to the knowledge and technology transfer the foreign employee provides to their Indonesian co-laborer; and
    • A report on the Indonesian co-laborer’s education and training program (submitted to the local MOM office).
    Penalties for Noncompliant Employers and Foreign Workers

    Following the compliance inspection, the MOM officer must complete a report containing information collected from foreign employees. The officer may also collect information from company managers, other company representatives and Indonesian co-laborers.

    The investigating office must provide the employer with a report of their investigation notes, which include their findings, any offenses discovered, the actions that the company must undertake to rectify any offenses and the deadlines for rectifying the offense.

    Work permit applications of foreign employees working for noncompliant employers may be temporarily suspended while the investigation is pending. Additionally, noncompliant employees may face revocation of their work permit and other sanctions or penalties. If the company continues to disregard the actions in the investigation notes and where the offence results in criminal sanctions, the investigating office may take additional action against the company.

    What This Means for Employers

    Employers should expect an increased frequency of compliance audits, and should therefore ensure that immigration records of all foreign employees are complete and that job descriptions and work locations match those indicated in work permits.

    Due to the MOM’s recent emphasis on protecting the local workforce, employers should maintain the education and training syllabus for Indonesian co-laborers in case of inspection. It is not expected that the syllabus will be required in support of work permit applications.