Human Resource Compliance in Global (Indonesia) – Every business entity or company must ensure that they have complied with and followed the laws and regulations and standards set by the government in a country.

There are many misconceptions about HR in every country. They think that human resources all over the world are the same. While there are similarities from country to country, there are a number of cultural differences to consider and to be aware of.

Seeing cultural differences requires research and experience in doing business internationally. Experienced HR managers can see the difference. Those who know these differences regulate and play an important role in bridging the cultural gaps found to be different through international expansion.

Let’s take a look at some of the most common HR compliance that we should know about globally.

What is global human resource compliance?

Global Human Resources Compliance are the rules and policies that ensure employees in a multinational company or business are treated fairly and legally, no matter where they are located. By ensuring the correct policies and procedures in terms of employment are carried out in accordance with applicable laws and regulations.


Onboarding foreign employees requires specialist, in-depth and most importantly local knowledge. Having HR and legal experts on your side is very important, because all employee rights must be considered, and every recruitment carried out must follow a smooth and efficient process.


>  Overview of labor rights.
>  Employer duty compliance check.
>  Collective bargaining requirements HR policies or internal regulations.
>  Letter of offer and employment contract Acceptance of new employees.

Determining employee relationship status

The employment relationship consists of the parties as the subject (employer and worker/labourer), work agreement, employment, wages, and orders.

Below are the common elements of an employment relationship:

>  Elements of work
>  The element of wages
>  The element of the command
>  Certain time elements

Regarding the existence of an employment relationship without an employment agreement, that is not true.

Special in Indonesia

Based on the Manpower Law no. 13 of 2003. In its implementation, the Employment Agreement must be made in writing in the Indonesian language and using Latin letters, and at least contains:

  • Name, company address, & type of business;
  • Name, gender, age, & address of the worker/labourer;
  • Position or type of work;
  • Place of work;
  • Amount of wages & method of payment;
  • Working conditions that contain the rights & obligations of employers and workers/laborers;
  • Commencement and validity period of the Employment Agreement;
  • Place and date the Employment Agreement is made;
  • Signatures of the parties in the Employment Agreement.

In the Republic of Indonesia itself, legally, the Employment Agreement is divided into two types of agreements, namely an Indefinite Time Work Agreement (PKWTT) or commonly referred to as a permanent worker agreement and a Specific Time Work Agreement (PKWT) which is commonly referred to as a contract employee agreement.

Immigration Law

This is a regulation regarding the period/term of time foreign employees are allowed to stay and carry out work/business activities in the host country.

For foreign employees who will stay and stay for a short or long time in the host country, they must have permission from the relevant authority sponsored by the employer. The permits that must be taken care of. Like:

>  Working permits
>  And residence visa/Limited Stay Visa

which is filed in accordance with applicable labor and immigration laws.

Collecting compliance and tax documentation

Tax compliance services will assist in fulfilling employee tax administration compliance in accordance with the applicable and latest regulations.

>  Tax compliance for monthly withholding.
>  Annual Income Tax Compliance.
>  Arrange tax payment on time.
>  Prepare monthly tax returns.
>  Submit all tax documents to the tax office as well as filing tax documents.

HR technology compliance

The increasing use of HR technology makes it all possible and also provides much faster results. A good HR technology method must comply with a number of regulations, such as employee data rights etc.


Human resource compliance can change at any time. Rapid change can pose challenges for all organizations/companies around the world. 

Need HR outsourcing services?

Indoservice is a modern employment agency and payroll company, offering a variety of HR consulting and outsourcing, for companies that want support in HR compliance, especially in Indonesia. Indoservice offers Employer of Record (EOR) services etc.

Contact us at email and Telp./Whatsapp +62818-1881-1887 for more information and special offers.


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    Human Resource Compliance in Global (Indonesia)
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    Human Resource Compliance in Global (Indonesia)
    Human resource compliance can change at any time, rapid change can pose challenges for all companies around the world. Need HR outsourcing?
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