Article 150 of Law No. 13 of 2003 on Labor (Labor Law) states that the provisions regarding termination of employment  under the Labor Law apply to the termination of employment that occurred in a business entity that possesses or does not possess legal standing, whether it is owned by an individual, a group of individuals, or a legal entity owned by private or the state, as well as other social enterprises and other businesses that have a management and have employed people and compensating them with returns [e.g. money]. Thus, layoffs that occur in a law firm or a lawyer's office are also covered by the provisions of this Law.

Article 1 (25) of the Labor Law states that termination of employment is a termination of a employment because of a particular issue that resulted in termination of rights and obligations between workers and employers. Article 151 (2) of the Labor Law explains that if the layoffs were inevitable, an agreement shall be negotiated by the employer and the relevant union(s) or the employees themselves if they are not a member of a labor union. When the outcome of these negotiations do not produce an agreement, the employer can only terminate the services of employees after succeeding by way of an industrial relations dispute settlement hearing (Article 151 (3) of the Labor Law). Furthermore, Article 155 (1) of the Labor Law states that a dismissal without first obtaining the decision of the dispute settlement hearing, as referred to in Article 151 (3), is null and void. Thus, your sister’s termination should be regarded as null and void.

This explanation is the extent of our knowledge on this issue. We hope it proves useful to you.  

Shanti Rachmadsyah