Company's Immigration and Employment Compliance
One of the most important aspects of Indonesian companies which employ foreign nationals in Indonesia is its compliance with Indonesian immigration and employment law.
With the stringent Indonesian immigration and employment laws, it is essential for companies to ensure that they are fully compliant and up-to-date with all applicable immigration and employment laws.
In principle, these laws are in place to regulate the employment condition of foreign nationals in Indonesia and protect the rights of the local workers.
In this article, we will discuss what is "Immigration and Employment Compliance", the potential consequences of non-compliance to immigration and employment regulations, and the benefits of having the company’s compliance checked regularly.
What is “Immigration and Employment Compliance”?
“Immigration and Employment Compliance” is when an Indonesian employer (or a company) complies with all the applicable immigration and manpower laws and regulations in respect of employing foreign nationals in Indonesia. These regulations can encompass large requirements, including, but not limited to, visa procedures, employment conditions, and reporting obligations.
This can involve:
Employees’ Verification: Indonesian employers are required to verify the employment eligibility and identity of all foreign employees and to complete all the required documentation.
Visa Compliance: For foreign nationals, specific visa types - such as work visas - are necessary for legal employment. Employers must ensure that all necessary visas are obtained and maintained correctly and that all the administrative mandatory payments are paid.
Fair Employment Practices: Fair employment practices do not only apply to domestic employees but also to foreign nationals employee. This means companies cannot discriminate against employees based on their national origin or citizenship status.
Record Keeping: Companies must maintain accurate records of their employee's immigration status and must be prepared to produce these records should they be audited by the Indonesian immigration or manpower authorities.
Keeping up-to-date with the Law Changes: Indonesian immigration and employment laws are dynamic and can change rapidly, so employers must stay updated with any changes in the law to maintain compliance.
What are the consequences of non-compliance to immigration and employment laws for Indonesia companies?
Non-compliance with immigration and employment laws can lead to some serious consequences for companies in Indonesia, including:
Legal penalties: non-compliance with immigration and employment law by companies might subject the companies to penalties, imprisonment, and in some extreme cases even revocation of business licenses.
Damage the company’s reputation: having a history of non-compliance to immigration and employment law may impact the company’s capability to attract both customers and employees candidates.
Disruptions in business operations: non-compliance with immigration law for companies may lead to disruptions in business operations if the non-compliance results in the deportation of key employees or make the company subjected to unexpected immigration audits.
Therefore, immigration compliance is not only a legal requirement for an Indonesian company that employs foreign nationals but also a form of risk management and business sustainability strategies.
What are the Benefits of an Immigration and Employment Compliance Check for Your Company?
Having an immigration and employment compliance check brings numerous advantages to an Indonesian company, especially those who are employing foreign nationals or even only having a plan to do so.
The following are the key benefits:
Risk Mitigation: Immigration and employment compliance checks help identify potential areas of risk before they become legal problems. Companies can avoid costly penalties and business disruptions resulting from non-compliance by staying ahead of such issues.
Maintaining the Company’s Positive Reputation: By consistently complying with immigration and employment laws maintain a company’s credibility and ethical standing. This can boost the company’s image among customers, business partners, and potential employees, which can provide a competitive edge in the marketplace.
Ensuring Business Continuity: Immigration or employment-related issues can lead to significant operational disruptions, such as losing critical foreign employees to deportation, or being involved in a costly and time-consuming employment dispute process. Routine compliance checks help prevent such disruptions and ensure the continuity of the business.
Supporting Growth and Expansion: Understanding immigration and employment law is important, particularly for companies who wish to expand its team internationally. A compliance check can provide valuable insights into the legal landscape, helping the company to navigate expansion efficiently and lawfully.
Empowering Employees: By maintaining compliance with immigration and employment law, companies send a message to their employees about the importance of legal and ethical behavior. This can promote a compliance culture within the company.
Staying Ready Against the Legal Developments: Indonesian immigration and manpower laws can change rapidly. Regular compliance checks ensure that the company is always up-to-date with the latest changes, helping the business to be prepared against any law developments.
At Tampubolon Legal Solutions, our team is ready to assist you in conducting thorough immigration compliance checks, we will help your company to comprehensively comply with the Indonesian immigration and employment laws.
How can Tampubolon Legal Solutions
At Tampubolon Legal Solutions, our team of experienced immigration and employment lawyers will provide you with various services to ensure your compliance to Indonesian immigration and employment law, including but not limited to:
Compliance assessment: We offer our clients to assess their current immigration and employment practices to ensure that it is in line with the Indonesian relevant laws and regulations. This includes: reviewing employment contracts, visa applications, work permits, and many other employment practices for potential issues.
Policy development: We help our clients to develop and implement immigration policies and procedures that comply with Indonesian law. This include: creating standard procedures for hiring foreign nationals employee (TKA), visa application processes, and compliance monitoring systems.
Strategic planning: We advise our clients who are looking to expand their team with foreign nationals employees or open operations in Indonesia, by providing strategic planning. This include: types of visas available, the application process, and how to navigate the immigration system efficiently.
Training: We also offer our clients online training sessions and workshops for HR teams, to equip them with the necessary knowledge to ensure immigration and employment compliance, which can reduce the risk of non-compliance and its consequences.
Representation: In the event of an immigration or employment audit or dispute, our team of Indonesian lawyers can also provide the necessary representation and advice, minimizing potential disruption to our clients’ business operations.
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