When a financial services company in Jakarta faced a situation where one of its senior analysts had to take extended leave due to a serious illness, HR was challenged to balance compassion with compliance. While the company wanted to support the employee, it also needed to ensure that the business operations and legal requirements were handled correctly.

Legal Framework

Sick leave and absenteeism in Indonesia are regulated under:

• Law No. 13 of 2003 on Manpower (as amended by Law No. 11 of 2020 – Job Creation Law),
• Government Regulation No. 35 of 2021,
• Law No. 3 of 1992 on Jamsostek, now integrated into BPJS Ketenagakerjaan and BPJS Kesehatan.

Employees who are unable to work due to illness, as proven by a medical certificate, are entitled to paid sick leave. For long-term illnesses, employers must follow the graduated wage payment scheme:

• First 4 months: 100% salary,
• Next 4 months: 75% salary,
• Next 4 months: 50% salary,
• Thereafter: 25% salary until termination or recovery.

Real Case Example

In 2021, an employee at a manufacturing company in Bandung filed a complaint after being dismissed during cancer treatment. The Industrial Relations Court ruled that the dismissal was unlawful, since the company failed to honor the mandatory wage payment schedule. The employer was ordered to reinstate the employee and pay compensation.

Best Practices for Foreign Employers

• Require Medical Documentation: Always request a valid doctor’s certificate for sick leave.
• Apply the Wage Payment Scheme: Ensure compliance with the statutory reduction percentages.
• Coordinate with BPJS: Employers must support claims for health coverage and work accident insurance.
• Maintain Communication: Stay in touch with long-term absent employees to support reintegration.
• Consider Flexible Work Options: Where possible, offer part-time or remote work for employees returning from illness.

Conclusion

Managing sick leave and long-term absenteeism in Indonesia requires strict adherence to statutory rules while maintaining a humane approach. Employers that document leave properly, comply with payment obligations, and support reintegration not only avoid legal risks but also strengthen employee loyalty and organizational resilience.

References

1. Law No. 13 of 2003 on Manpower (as amended by Law No. 11 of 2020).
2. Government Regulation No. 35 of 2021.
3. Law No. 3 of 1992 on Jamsostek.
4. BPJS Ketenagakerjaan & BPJS Kesehatan official sites – https://www.bpjsketenagakerjaan.go.id, https://www.bpjs-kesehatan.go.id.
5. ILO Jakarta – Indonesia: Employment Practices and Social Security.