Contract employees are workers hired by a company for a specific period of time, based on a written agreement known as a Fixed Term Employment Agreement (PKWT).
They work for the duration specified in the contract, usually to handle temporary, project-based, seasonal, or experimental work. Contract workers do not have permanent employee status, and their employment period is limited, with a maximum duration of three years according to government regulations.
These regulations are outlined in Law No. 13 of 2003 on Labor, which has been updated by the Job Creation Law No. 11 of 2020 and Government Regulation No. 35 of 2021.
These regulations ensure that contract employees receive fair protection and rights during their employment period and also outline the obligations they must fulfill.
Contract Employee Rights
Contract employees have several basic rights that must be fulfilled by the company as the employer. These rights are important to maintain welfare and job security during the contract period.
One of the main rights is income or wages that must be paid on time and in accordance with regulations, including ensuring that wages are not less than the Regional Minimum Wage.
Additionally, contract employees are entitled to social security coverage, including health allowance. They also receive annual leave and sick leave in accordance with applicable regulations.
Equally important, contract employees are entitled to a safe and healthy work environment and receive the holiday allowance if they meet specific employment tenure requirements.
Also read: How to Create SOPs for Employees: Don't Miss This!
Contract Employee Obligations
Just as important as their rights, contract employees also have obligations that must be fulfilled during their employment period to ensure that the working relationship runs smoothly and professionally.
The primary obligations of contract employees include performing all work in accordance with the employment contract and task agreements. They are also required to comply with all company regulations, including ethical standards and work discipline.
Even as contract employees, they must maintain the confidentiality of company information. Loyalty and professionalism are also expected from employees to contribute positively to the company.
Employee Attendance Management Made Easy with iPresens
Managing contract employees requires an effective system to monitor attendance and other administrative tasks. iPresens, an online attendance application, is here to help companies manage these tasks in a practical and modern way.
iPresens offers various premium features, such as GPS-based attendance tracking, to ensure valid attendance from the workplace location. Additionally, the automatic attendance summary system simplifies HR tasks in tracking attendance, tardiness, leave, and permissions.
Employees can also submit leave requests and overtime directly through the app, and payroll is processed automatically based on attendance data and employee submissions. The app also includes features for submitting expense claims and reimbursement requests, simplifying employee financial administration.
With iPresens, managing contract employees becomes easier! Contact us now to experience the app demo!
