Government Regulation No. 35 of 2021 on Fixed-Term Employment Agreements, Outsourcing, Working Hours and Rest Periods, and Termination of Employment
IzinBeres Regulations Library · status data from JDIH BPK · updated 23 September 2026
- Status
- In force
- Type
- Government Regulation (PP) 35/2021
- Enacted
- 2 February 2021
- Promulgated
- 2 February 2021
- Effective
- 2 February 2021
- Official gazette
- LN.2021/No.45, TLN No.6647, jdih.setkab.go.id : 42 hlm.
- Category
- Employment
Summary
PP 35/2021 governs fixed-term employment agreements (PKWT), outsourcing, working hours and rest periods, and termination of employment. It details the types of work that may use a PKWT, its duration and extension, compensation pay for PKWT workers, protection of outsourced workers, overtime, long leave, termination procedures, and severance pay.
The regulation implements the employment cluster of the Job Creation framework. For employers, including a PT PMA hiring staff in Indonesia, it is the rule used to draft employment contracts and to calculate workers' entitlements when employment ends. Outsourcing arrangements are also subject to its licensing and worker-protection rules. Contract types, compensation pay and severance should therefore be planned with this regulation in mind from the first hire.
Key points for investors
- Basis for drafting PKWT contracts and compensation pay.
- Regulates licensing and worker protection in outsourcing.
- Reference for calculating severance pay.
Status & related regulations
JDIH BPK records no amending or revoking regulations.
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Summaries are written by IzinBeres for readability and are not legal advice. Dates, status and related regulations come from the JDIH BPK database (peraturan.bpk.go.id) as of 23 September 2026. The binding text is the official Indonesian text.