“Tricks” for Preserving Contract Status for Employees

In general, making employees in the status of permanent or permanent employees is still felt as a burden for some companies, many things make the company feel more comfortable having employees in “contract” status.

However, on the other hand the company also understands the legal risks by hiring unlimited “contract” employees or applying them to work relationships that are supposed to be “permanent”. In its development, this kind of “awareness” gave birth to some “trick” practices to anticipate the above mentioned laws and conditions.

1. Periodically Replace The Employees They Employ.

The company will only employ employees for less than two years in one period of employee recruitment, instead it can occur in less than one year after the employee has been replaced. This practice is applied to simple job positions and low skills, so technically if replaced with a new employee there will be no difficulty in “transferring knowledge” about how work is carried out.

2. Playing the Tenure in One Contract Period.

This type of fold playing is played with the aim, the first is to get the shortest possible contract period if an employee who can be rated “reject”. So the company does not need to break the contract in the middle of the road but just wait for the contract period to expire. However, if the same employee is considered productive and not adventurous, the contract period can be optimized without being trapped by the maximum frequency of contract extension determined by law.

For example, when a new employee signs the first “contract”, the agreed contract period is 6 months, from 1 January to 30 June. But by the company the written contract was not submitted to employees for administrative reasons. When the employee contract period expires, the company may not renew the contract if the employee is deemed “reject”. But, if the employee is judged otherwise, then the employee will be asked to sign a follow-up contract whose contract period is counted back from the first contract period up to the next 6 months, ie from January 1 to December 31, 2009, and automatically the advanced contract that should include the contract secondly by the means they will still be recorded as the first contract.

An advantage for the company, because then the employee contract can still be extended once again by the company without having to go through a contract renewal process which is a bit more troublesome for the company.

3. Obeying the Maximum Provisions for the Allowable Contract Period

When companies have to employ highly skilled employees and more complex workloads, it will become a problem if the frequency of employee replacements in these positions is too fast and frequent. The problem is usually in the process of “knowledge transfer”, it will require an intensive and troublesome training program to polish so many new employees to have the same abilities as the old employees. Not to mention if there is a problem that disturbs the health of employees. Of course, there are a number of conditions that qualify for long-term disability. Meanwhile, if old employees are retained with the pattern of “plain” contracts, then it will be bumped with the maximum provisions of the allowed contract period, whereas if the old employees who have been tested are longer employed, the company will have more time in anticipating the employee replacement process without disrupting the company’s operations or the quality of the human resources to be employed.