KnowledgeEmployee Work Agreement

“I have a factory which now employs nearly a thousand people. From there, there began to be many requests from trade unions to pay above the minimum wage and other benefits. How to handle it?”

Indeed, the Manpower Law has a political background that makes it impossible to implement it anywhere. It is arguably more impossible to obey labor regulations than tax laws. Contracts or annual work agreements (PKWT) that are often used by factories cannot be separated from the law.

However, this can be maneuvered by making a partnership agreement with most of the core employees whose loyalty has been proven. This partnership agreement contains investment in shares which is a reward for their hard work. Apart from eliminating the employment element and minimizing the risk of “going bankrupt because of paying salaries”, this agreement also gives employees a sense of ownership, thereby enhancing their performance.

This was common among overseas companies such as Tesla and Amazon when they were just starting out. But once again, pay attention to the elements of the agreement so that it does not contain provisions which for the sake of law automatically change back into a work agreement. Make sure your employee employment agreement is what you want or discuss it with a legal consultant you trust to avoid unwanted mistakes.

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