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mall business owners often unknowingly overlook important employee rights guaranteed by law. Understanding these rights not only protects employees but also shields your business from legal risks.

What Employee Rights Are Commonly Overlooked?

Here are several employee rights commonly overlooked by small business owners:

1. Minimum Wage

Every employee is entitled to receive wages at least equal to the regional minimum wage.

2. Working Hours and Overtime

Maximum daily working hours are 8 hours or 40 hours per week. Overtime hours must be compensated accordingly.

3. Leave Entitlements

Employees are entitled to at least 12 working days of annual leave after working for 12 consecutive months.

4. Social Security

Employees must be enrolled in the BPJS Health and BPJS Employment programs.

5. Right to Written Employment Contract

Employees have the right to receive a written employment contract as a clear legal basis.

Legal Risks for Employers Ignoring Employee Rights

Ignoring employee rights can lead to legal risks, including fines, lawsuits, and damage to your business reputation.

Tips to Ensure Employee Rights Are Fulfilled

  • Understand and consistently apply the latest employment regulations.

  • Draft clear written employment contracts that comply with legal requirements.

  • Always be transparent about employee rights and responsibilities within your company.

Conclusion

Knowing and fulfilling employee rights is not just a legal obligation but also helps create a healthy and productive work environment, essential for the sustainability of your small business.

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