Avoid Disputes and Sanctions with XPND’s HR Administration System

In Indonesia, human resources matters often appear simple on the surface. Employment contracts are merely extended, overtime is simply paid, and leave is easily approved. However, since the regulatory changes following the Job Creation Law (UU Cipta Kerja) and the enactment of the Mother and Child Welfare Law (UU Kesejahteraan Ibu dan Anak/UU KIA), the margin for administrative error has become extremely narrow.

Details that were previously considered minor can now trigger serious consequences, ranging from delayed contract compensation obligations, potential spikes in tax deductions in December, to administrative sanctions that restrict access to public services and licensing.

At this point, HR administration has evolved in function. It is no longer limited to paperwork. HR administration has become a critical component of corporate compliance that ensures business operations remain stable and protected.

XPND is here to take over administrative burdens and ensure every employment related process is carried out within the applicable legal framework, properly documented, and ready in the event of audits, inspections, or disputes.

Why HR Administration Requires a Higher Standard in 2025 to 2026

Indonesia’s employment law framework has undergone major reconstruction. Legacy regulations such as the Manpower Law 2003 (UU Ketenagakerjaan 2003) are no longer sufficient as operational references.

Following the ratification of the Job Creation Regulation in Lieu of Law (Perppu Cipta Kerja) into law, companies must understand the practical implications of implementing regulations such as Government Regulation 35 Year 2021 (PP 35 Tahun 2021), Government Regulation 36 Year 2021 (PP 36 Tahun 2021), and the latest regulatory shifts in maternity leave under UU KIA.

This means that companies seeking operational stability must ensure two elements run in parallel: Uninterrupted operations and strict administrative compliance. Regulation based HR administration services now provide tangible value, not only by handling documents, but by closing compliance gaps before they become legal risks.

Contract Management and Database Administration Securing PKWT

One of the most significant changes in employment administration is contract management, particularly PKWT. Under Government Regulation 35 Year 2021, PKWT (Perjanjian Kerja Waktu Tertentu) can now extend up to a cumulative period of five years. While this offers business flexibility, it simultaneously requires more disciplined HR administration because contracts may be extended multiple times within that five year limit.

The challenge is that long term contracts often lead to negligence. Companies forget expiration dates, fail to prepare renewal documents, or delay termination documentation. In practice, such administrative gaps frequently trigger disputes.

XPND handles full HR administration for employment contract lifecycles, covering PKWT and PKWTT (Perjanjian Kerja Waktu Tidak Tertentu). We also implement an alert system before contract expiration so management can decide whether to extend or terminate the contract in advance.

When contracts are terminated, XPND prepares employment clearance letters (Paklaring) and compensation receipts promptly and in compliance with regulations.

Mandatory Contract Compensation PKWT

Under Government Regulation 35 Year 2021, PKWT compensation becomes a mandatory employer obligation upon contract completion, whether due to expiration or job completion, and applies to employees with at least one month of continuous service.

A frequently overlooked detail is the payment timing. If PKWT is extended, compensation for the first contract period must be paid before the renewal begins. This is critical because failure to manage it properly can create financial disputes and compliance exposure.

XPND helps companies control these obligations through disciplined contract recording and HR administration monitoring systems.

Personnel Administration and Leave Management under Mother and Child Welfare Law (UU KIA)

UU KIA introduces major changes in maternity leave. Public discussions often mention six months of leave, but legally the structure is clear. The base entitlement is three months, while an extension up to six months is conditional upon medical certification.

The challenge for companies lies in administrative verification. Medical letters must be valid, conditions must qualify, and documentation must be accurate to prevent disputes or audit findings.

XPND acts as an administrative filter. Our HR administration team verifies the authenticity of medical certificates before approving conditional maternity leave, ensuring compliance without disrupting company operations.

Overtime Monitoring under Government Regulation 35 Year 2021

The overtime threshold has been expanded to four hours per day and eighteen hours per week. While this supports operational flexibility, violations in overtime management carry risks of criminal sanctions and penalties.

XPND monitors attendance records and overtime data to ensure employees do not exceed legal limits. We provide compliance flagging reports to help management intervene early.

Speak with XPND’s HR administration specialists to review your overtime compliance risks and prevent regulatory sanctions.

Industrial Relations Support Securing Termination Documentation

Termination is the most sensitive stage in industrial relations. Companies often lose disputes due to weak documentation. Under the current framework, termination reasons directly affect severance multipliers.

XPND prepares procedural disciplinary warnings (Surat Peringatan 1, 2, 3) and ensures all PHK supporting documents comply with Government Regulation 35 Year 2021 to minimize legal risks.

Government Compliance and Reporting through Structured HR Administration

In the digital era, administrative compliance is no longer a formality. It directly determines whether companies can access public services, licensing, and government related processes.

Manpower Reporting Obligation

WLKP (Wajib Lapor Ketenagakerjaan Perusahaan) must be submitted annually and often becomes a requirement for licensing and employment administration. XPND manages WLKP reporting consistently.

Social Security Administration (BPJS Kesehatan and BPJS Ketenagakerjaan)

BPJS compliance is mandatory. Failure to register employees may lead to administrative sanctions affecting business operations. XPND manages employee registration and updates in real time.

Contact XPND to ensure your WLKP and BPJS administration is fully compliant and protected from government sanctions.

HR Administration that Reduces Internal Operational Burden

Many companies have capable HR teams. However, increasing administrative complexity limits their ability to focus on strategic workforce management.

With XPND, high risk HR administration tasks are handled systematically so internal teams can focus on productivity and business growth.

Key Outcomes Delivered by XPND HR Administration Services

Companies working with XPND gain:

• Structured employment contract management
• Controlled PKWT compensation compliance
• Verified maternity leave documentation
• Overtime compliance monitoring
• Legally robust PHK documentation
• Timely WLKP and BPJS reporting

Turn Compliance into Business Protection

Companies growing rapidly are the most vulnerable to administrative HR risks. Small compliance gaps can escalate into disputes and sanctions.

XPND is ready to become your strategic HR administration partner to ensure compliance, documentation accuracy, and operational protection.

Schedule a consultation with XPND to assess your HR administration risks and build a compliant workforce management framework for your company in Indonesia.