Garment: Annual Leave & Weekly Rest Day

ANNUAL LEAVE AND PAID LEAVE IN THE GARMENT SECTOR

1. What is an annual leave?
2. Are workers in the garment sector entitled to the annual leave?
3. When will the garment workers can take their annual leave?
4. What is a joint holiday?
5. Is the joint holiday also included in the annual leave?
6. Can the company employ its workers during the joint holiday?
7. Does the company have to pay for the overtime pay when the workers work on a day designated as a joint holiday?
8. Can garment workers take the annual leave suddenly?
9. Is the company required to provide compensation if the workers do not take the annual leave entirely?
10. Do the workers receive compensation in lieu of the annual leave entitlement in the event of termination of employment?
11. Does a garment worker to be married receive paid leave? How long is the paid leave to be taken?

PUBLIC HOLIDAY AND WEEKLY REST DAYS IN THE GARMENT SECTOR 

1. How many public holidays can a garment worker obtain?
2. Do weekly rest days always fall on Saturday and/or Sunday? Can the garment company designate the weekly rest day on any other day?
3. What can the workers do if the employer infringes the leave entitlement?

ANNUAL LEAVE

WHAT IS AN ANNUAL LEAVE?

Annual leave is a rest/leave period during which the workers still receive pay that the workers may use for any purpose according to their desire and requirement. 

ARE WORKERS IN THE GARMENT SECTOR ENTITLED TO THE ANNUAL LEAVE?

Yes. Article 79 paragraph (1) letter b and paragraph (3) of the Law No. 13 of 2003 concerning Manpower (Law No. 13/2003) in conjunction with Law No. 11 of 2020 concerning Job Creation (Law No. 11/2020) specifies: employers must grant leave. The leave must be granted to the worker/laborer, i.e. annual leave, at least 12 (twelve) business days after the relevant worker/laborer has been working for 12 (twelve) consecutive months and the implementation of such annual leave shall be set forth in the Employment Agreement, the Company Regulation or the Collective Bargaining Agreement. 

WHEN WILL THE GARMENT WORKERS CAN TAKE THEIR ANNUAL LEAVE?

The annual leave entitlement may be taken after the worker has been working for 12 consecutive months. Or meaning that the new worker may enjoy his/her annual leave on the 13th month following the commencement of employment. The Company may also regulate the implementation of annual leave in the Employment Agreement, the Company Regulation or the Collective Bargaining Agreement, insofar as it does not infringe the annual leave entitlement of the workers (no less than 12 business days in 1 year).

WHAT IS A JOINT HOLIDAY?

A joint holiday is the taking of annual leave performed jointly on the advice or instruction of the Government due to the existence of a Public holiday. This joint holiday shall be designated as an official holiday by the Government.

IS THE JOINT HOLIDAY ALSO INCLUDED IN THE ANNUAL LEAVE?

Yes. The regulation is set forth in the Circular of the Minister of Manpower No. B.70/M.NAKER/PHIJSK-SES/V/2018 concerning Implementation of Joint Holiday at Companies. The Circular asserts that the joint holiday is part of the annual leave.

CAN THE COMPANY EMPLOY ITS WORKERS DURING THE JOINT HOLIDAY?

Yes, it can. For workers working on any joint holiday, pursuant to the Joint Decree of 3 Ministers concerning Public Holiday and Joint Holiday,their annual leave entitlement shall not be reduced and they shall receive the overtime pay due to working on an official holiday (article 85 paragraph (3) of the Law No. 13/2003). On the contrary, if the workers take the joint holiday, then their annual leave entitlement shall be reduced.

DOES THE COMPANY HAVE TO PAY FOR THE OVERTIME PAY WHEN THE WORKERS WORK ON A DAY DESIGNATED AS A JOINT HOLIDAY?

In addition to not cutting the salary and the leave entitlement of the workers, the laws and regulations also assert that the workers are not required to work on any such day. Therefore, for workers working on the weekly rest day, public holiday, or official holiday declared as a joint holiday, the employer shall be required to pay for the overtime pay (article 85 paragraph (3) of the Law No. 13/2003).

Furthermore, the calculation of overtime pay on the weekly rest day and the public holiday shall be set forth in article 31 paragraphs (2) and (3) of the Government Regulation No. 35 of 2021 concerning Fixed Term Employment Agreement, Outsourcing, Working Time and Break Time, and Termination of Employment (Government Regulation No. 35/2021).

CAN GARMENT WORKERS TAKE THE ANNUAL LEAVE SUDDENLY?

Article 79 paragraph (4) of the Law No. 13/2003 in conjunction with the Law No. 11/2020 stating that the implementation of annual leave shall be set forth in the employment agreement, the company regulation, or the collective bargaining agreement (CBA). This means that the regulation concerning whether or not the annual leave may be taken suddenly shall depend on the employment agreement, the company regulation, or the CBA of the workplace of the worker concerned.

For companies having many workers, probably the production activities may still run properly if there is any working taking leave suddenly. However, if the number of workers is limited, the company should arrange for the production process to be uninterrupted and keep running. Thus, the leave arrangement shall depend on the circumstance of each garment company.

IS THE COMPANY REQUIRED TO PROVIDE COMPENSATION IF THE WORKERS DO NOT TAKE THE ANNUAL LEAVE ENTIRELY?

There is no provision in the Manpower Law governing the existence of compensation (in monetary form) in lieu of the annual leave not taken by the workers (in part or in whole). It means that if the workers have been given the opportunity for leave and there is no agreement on monetary compensation, then if not taken, the leave entitlement of the worker concerned shall be automatically forfeited.

DO THE WORKERS RECEIVE COMPENSATION IN LIEU OF THE ANNUAL LEAVE ENTITLEMENT IN THE EVENT OF TERMINATION OF EMPLOYMENT?

Yes. Article 156 paragraph (4) letter a of the Law No. 13/2003 governing the compensation for Termination of Employment, recognizing the existence of compensation pay in the form of annual leave not taken and not forfeited. Or the annual leave compensation (in monetary form) for workers with terminated employment.

DOES A GARMENT WORKER TO BE MARRIED RECEIVE PAID LEAVE? HOW LONG IS THE PAID LEAVE TO BE TAKEN?

Yes. In article 93 paragraph (4) of the Law No. 13/2003, it is stated that the workers shall be entitled to the leave of absence for an important reason and shall be paid in full. The important reason/purpose shall include: 

1. Marriage of the worker, shall be entitled to paid leave for 3 (three) days
2. Marriage of his/her child, entitled to paid leave for 2 (two) days
3. Circumcision of his/her child, entitled to paid leave for 2 (two) days
4. Baptism of his/her child, entitled to paid leave for 2 (two) days
5. Childbirth/miscarriage of spouse, entitled to paid leave for 2 (two) days
6. Death of spouse, parent/parent-in-law, child or child-in-law, entitled to paid leave for 2 (two) days
7. Death of a family member in the same house, entitled to paid leave for 1 (one) day.

PUBLIC HOLIDAY AND WEEKLY REST DAYS IN THE GARMENT SECTOR

HOW MANY PUBLIC HOLIDAYS CAN A GARMENT WORKER OBTAIN?

On March 29, 2023, the government officially declared changes to the national holidays and collective leave days for the year 2023. This determination is outlined in the Joint Decree (SKB) of the Minister of Religious Affairs, the Minister of Manpower, and the Minister of Administrative and Bureaucratic Reform Number 327 of 2023, Number 1 of 2023, Number 1 of 2023 concerning Amendments to the Joint Decree of the Minister of Religious Affairs, the Minister of Manpower, and the Minister of Administrative and Bureaucratic Reform Number 1066 of 2022, Number 3 of 2022, Number 3 of 2022 regarding National Holidays and Collective Leave Days in 2023. The Joint Decision by the three ministers specifies that in 2023, there will be a total of 16 national holidays and 9 collective leave days.

Agreed upon National Holidays for 2023:

Agreed Collective Leave Days for 2023:

DO WEEKLY REST DAYS ALWAYS FALL ON SATURDAY AND/OR SUNDAY? CAN THE GARMENT COMPANY DESIGNATE THE WEEKLY REST DAY ON ANY OTHER DAY?

Yes, it can. Basically, the company shall be required to provide weekly rest days to its employees, 1 (one) day for 6 (six) business days in 1 (one) week or 2 (two) days for 5 (five) business days in 1 (one) week. The Manpower Law does not specify on which day the weekly rest day should fall.

WHAT CAN THE WORKERS DO IF THE EMPLOYER INFRINGES THE LEAVE ENTITLEMENT?

If a garment company infringes the leave entitlement, then the workers may take the following steps:

1. The workers may discuss the issue with the company.
2. Failing which, the workers may escalate it to the mediation level by involving a mediator from the local manpower department.
3. Or the workers/union may immediately report such infringement to the Manpower Supervision section existing at the local Provincial/Municipal/Regency Department.