Today’s Legal Enlightenment (Thursday, 11 August 2022) – THE BOARD OF DIRECTORS ARE NOT LABORERS OR EMPLOYEES AND THEREFORE ARE NOT ENTITLED TO SEVERANCE PAY
According to the Supreme Court, the Plaintiff as a Director is not a laborer or worker as referred to in Article 1 point 3 of Law No. 13 of 2013. The legal relationship between the Board of Directors and the Company is a legal relationship of trust (fiduciary duty) which does not contain the element of “order” as is the case in an employment relationship referred to in Article 1 point 15 of Law No. 13 of 2003.
→ Supreme Court Decision No. 990 K/Pdt.Sus/2010, 10 January 2011
Regards,
Fredrik J. Pinakunary