Any good and of course legal advice?

[kroshka]

We are about to hire a couple of new people. At least of one the positions requires training and also training abroad at the mother company. This is an investment, and quite expensive.

I have now been going through more than 100 CV's for one position, and the picture clearly shows that a majority of the applicants often stay in a job for less than a year, and only a few more than 2 years.

We would like to (and also have to) employ local staff. Expect for paying the employee over the op salary (so it becomes hard for him to find a 500,000 IDR better paid job next door) can you share other advice how to make sure that the employee dont give notice after a short time of employment?

Appreciating your input

 

[Minuteman]

Had a similar situation in the company I worked for here for 15 years. Their company policy was this: If an employee received training in Indonesia, they could resign at any time after. If they received training abroad then they would sign a commitment, say 5 years, before they could move on.

I don't know what the labor law is now, but this has been the norm before. Look into that.

 

[centurion]

You can have a temporary contract with a penalty clause in the employment contract. Besides the usual obligation of the employee to pay out the remaining salaries that he will not work in case of resignation to the employer, you can put additional penalties in case of unilateral termination of the contract:

-repayment of all cost invested in the employee,
-an additional penalty in money terms (it is not unusual in Indonesia).

Have on mind that if the employer terminates the contract early it owns the remaining salaries to the employee, so it would be wise that the employee waives these rights in advance rights when he/she signs the contract except for some amount that you agree in advance. Waiver of rights has limitations if it is not in good faith or against public policy or public order.

Less legal ways (not recommendable but to point for the usual practice) in Indonesia are not giving the employee`s copy of the contract at all so he doesn't know actually what he signed, signing blank resignation in advance etc.

 

[R Cameron]

I have no direct experience, but I can guess that it would be difficult to recoup money from an employee who has left, even with a great contract and a court saying they must pay. Rather than a penalty system, consider a reward system. Pay them slightly above the competition, but have established substantial bonuses for reaching 5 years, 10 years, etc. If slightly better wages or a change of scenery appeal to them in 2 years, they will already feel invested in obtaining that 5 year bonus and be much more likely to stick it out.

Although, whether a bonus is annually or every 5 years, right after receiving it will be the most likely time for them to quit. If it was annually, that's too frequently that they will consider the other options. 5 years may be good, but be prepared to offer further enticement. Perhaps a 5 year bonus and no mention of any other. As 4.5 years arrives, tell them about the even bigger 10 year bonus.

 

[kroshka]

Thank you very much for your inputs. Yes I also think it is hard to get the employee to pay for breaking a contract, but maybe such clause will make them think twice before they just leave.