Thursday, July 17, 2025
Legal Implications for Absentee Workers in the Oil and Gas Industry Under Indonesian Labor Law
Legal Implications for Absentee Workers in the Oil and Gas Industry Under Indonesian Labor Law
Author: Usman Arifin M, SH. MH.
Labor Law Consultant, Industrial Relations Practitioner, Founder of USALawfirm
Alumnus of the Master of Law Program, Faculty of Law, University of Indonesia (Labor Law Concentration)
ABSTRACT
The oil and gas industry is characterized by high-risk working conditions and unique employment systems such as rotational shifts and remote site assignments. Unauthorized absenteeism in this sector not only impacts productivity but may also compromise team safety. This article analyzes the legal consequences faced by workers in the oil and gas sector who are absent without leave, based on Law No. 13 of 2003 on Manpower and its amendment through Law No. 11 of 2020 (Job Creation Law), as well as Government Regulation No. 35 of 2021. A normative legal approach is employed to evaluate the roles and legal responsibilities of both employers and workers in absenteeism cases, including the lawful and fair procedures for employment termination.
Keywords: absenteeism, oil and gas industry, termination of employment, employment relationship, labor law
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CHAPTER I – INTRODUCTION
Background, As a vital national sector, the oil and gas industry operates under stringent systems in terms of safety, working hours, and operational responsibility. Employees in this sector often follow specific work patterns such as 14/14 or 28/14 day rotations at remote sites, typically located in designated oil and gas working areas far from residential settlements. In such conditions, unauthorized absence or absenteeism can disrupt operational schedules, delay production, and pose safety risks to the team.
Absenteeism is not merely a disciplinary violation; it may incur legal sanctions, including employment termination. Therefore, it is essential for both employers and workers in the oil and gas industry to understand the legal grounds and procedures for handling unauthorized absences.
Problem Formulation
• What are the legal provisions concerning absenteeism in the oil and gas industry?
• What are the legal implications and responsibilities of companies in addressing absenteeism?
• How is lawful employment termination implemented in the oil and gas sector?
Research Objectives
• To analyze the legal basis of worker absenteeism in the oil and gas industry
• To explain the procedures for lawful summons and termination
• To assess the legal responsibilities of both parties in absenteeism cases
CHAPTER II – LEGAL FRAMEWORK AND THEORETICAL BASIS
Definition of Absenteeism in the Oil and Gas Context, Absenteeism in the oil and gas industry may include failure to appear for scheduled rotation, failure to return to the site after an off-period, or absence from work without prior notice. Given the strictly regulated nature of work (e.g., shift work involving critical equipment), absenteeism can lead to workforce imbalances and endanger operations.
Legal Basis
• Article 168 of Law No. 13/2003 in conjunction with Law No. 11/2020: Workers who are absent for 5 consecutive days without valid explanation are considered to have resigned voluntarily.
• Government Regulation No. 35/2021: If a worker is deemed to have resigned due to absenteeism, the employer is not obliged to pay severance compensation.
• Special Regulations in the Oil and Gas Industry: Provisions within PSCs (Production Sharing Contracts) and site-based employment agreements.
Contractual Responsibility and Industrial Relations Theory, Under the theory of employment agreements, attendance is an essential obligation of the worker. Absence without a valid reason may be classified as a breach of contract (default). In the oil and gas sector, the operational risk theory further justifies the employer's swift response to disciplinary violations.
CHAPTER III – DISCUSSION
Absenteeism Handling Procedures in the Oil and Gas Industry
Legal measures available to oil and gas companies include:
1. Attendance verification by HR Site & Operations Supervisors
2. Issuance of two formal summons (via email and hard copy if possible)
3. Documentation (Logbook, e-attendance system)
4. Evaluation of potential force majeure (serious illness, accidents, site access issues)
5. If no response is received, employment termination on grounds of voluntary resignation may proceed
Case Study Example
Case Study 1 – PT ABC Migas (2023)
A technician was absent for a full 14-day rotation without explanation. The company issued two formal summons delivered via courier with proof of receipt, requesting the employee to clarify the absence. The worker ignored the summons and did not return. As a result, the company terminated the worker’s employment without severance, only compensating for unused leave. The worker filed a lawsuit with the Industrial Relations Court (PHI) via the local District Court, but the claim was rejected, as the termination procedure was deemed lawful.
Legal Protection for Workers
Although employers have the right to terminate employment, workers retain the right to:
• Prove the absence was due to an emergency
• Argue that the summons was not properly delivered
• Present a valid reason for the absence (e.g., force majeure)
A lawsuit may be filed with the Industrial Relations Court under Article 151 of Law No. 13/2003 if the worker believes the termination was unlawful.
CHAPTER IV – CONCLUSION
Conclusion, In the oil and gas industry, absenteeism is a serious violation that can disrupt operations and compromise safety. Consequently, the law permits employers to terminate workers following proper procedures in accordance with Article 168 of the Manpower Law. However, workers’ rights must still be respected, including their right to defend themselves if there is a valid reason for the absence.
Recommendations
• Employers in the oil and gas sector must include absenteeism provisions in company regulations and employment contracts
• Internal Standard Operating Procedures (SOPs) should outline the steps for summons and termination
• Regular socialization is necessary to educate oil and gas workers about the legal consequences of absenteeism, especially in safety-critical operations
REFERENCES
1. Law No. 13 of 2003 on Manpower
2. Law No. 11 of 2020 on Job Creation
3. Government Regulation No. 35 of 2021 on Fixed-Term Employment, Working Time, and Termination
4. PT Chevron Pacific Indonesia Company Regulation, SKK Migas Guidelines
5. Oki Wahju Budijanto, Labor Law and Termination of Employment, De Jure Journal, 2018
6. Jakarta Industrial Relations Court Decision No. 125/PHI.G/2022/PN JKT.PST
7. BP Indonesia HR Guide – Field Operational Handbook (2022).
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