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Jakarta –
The government and RI Legislative Body of DPR hurriedly continue to discuss the Job Creation Bill. One of the focuses of discussion is the modification of various points of the Labor Law, which is regulated in Law No. 33 of 2003.
The discussions took place from the settlement of severance pay up to the minimum wage. Here are 3 facts about the new labor regulations in the Job Creation Bill.
1. Severance pay will be removed 32 times
The government proposed eliminating severance pay. The expert staff in Regulation, Law Enforcement and Economic Resilience, Coordinating Ministry of the Economy, Elen Setiadi said that until now, severance pay, which is set at a maximum of 32 times the salary, is onerous for business actors.
It is also said to make investors less comfortable investing.
“We describe the severance pay layoffs, which give 32 times wages to onerous businesses and reduce investors’ interest in investing,” Elen said during a working meeting with the Legislative Body last Saturday, quoted on Facebook by the Legislative Body of Indonesian Parliament, Monday (9/28/2020).
Elen said that so far, severance pay is fraught with uncertainty. The proof is that, based on data from the Ministry of Manpower, most companies do not comply with the rules for payment of compensation according to Law 13 of 2013.
“Here is an existing payment madeRecord With the Ministry of Manpower, 66% do not comply with what is established by law. So 27% partially comply, employees receive severance pay, but not according to their rights. Only 7% complied, “Elen said.
“With an arrangement like this, the implementation is not the same, so we believe there is uncertainty about this compensation,” he continued.
Then, at a meeting that was held the day after, or rather on Sundays. The government and Baleg agreed not to eliminate the method of calculating severance pay.
It’s just that the calculations will be changed. The 32 times severance pay formula still applies, the details are covered 23 times by the employer or company, and 9 times will be covered by the Job Loss Guarantee (JKP).
2. The government proposes a job loss guarantee
Elen said the government proposed a Job Loss Guarantee (JKP). It is claimed that this program can protect the rights of employees who have been laid off, from cash assistance benefits, training and employment information.
“We propose that there be a new program, Job Loss Guarantee. This should be implemented quickly. Why is it necessary? This program provides benefits to those who have been laid off with 3 benefits. Cash benefits such as salary or salary each month It can be how many months according to the agreement in here, “said Elen.
“Then professional training, skills update according to the labor market. Then job access placement, “he continued.
Meanwhile, for JKP program beneficiaries, Elen said employees will continue to receive other social security. Starting from work accident insurance (JKK), old-age security (JHT), pension security (JP), death insurance (JKM) and National Health Insurance (JKN).
3. Clear minimum wage
The government and Legislative Body of DPR RI agreed not to include labor-intensive minimum wages in the Job Creation Bill. The minimum wage that is maintained is only the provincial and district / city minimum wage.
DPR RI President Baleg Supratman Andi Agtas said that this decision was made according to the results of a tripartite meeting between employers, workers and the government.
“Based on the tripartite decision, agreeing that the labor-intensive minimum wage be excluded from the Job Creation Bill, I want to emphasize that this is good news and hope for workers and unions,” Supratman said .
On the other hand, the Expert Personnel in Regulation, Law Enforcement and Resilience of the Coordinating Ministry of the Economy, Elen Setiadi, said that the commitment to the tripartite meeting should be assumed. Therefore, the government agreed to eliminate the labor-intensive minimum wage.
“We are still committed to the tripartite, so it will be eliminated,” Elen said.
Supratman explained that the article on criminal penalties in the Ciptaker labor cluster bill will continue to use current law.
This also applies to the district’s minimum wage. The provisions in the article relating to the district’s minimum wage will continue to use existing law and remain unchanged.
(ara / ara)
