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The Omnibus Law is currently being debated. Since it was ratified on October 5, 2020, through the plenary session of the DPR, objections have arisen from various parties, especially from workers. Various information is disseminated. Among the scattered information, let’s try to find a clarification:
1. Is it true that severance payments will be eliminated?
Fact: severance pay is still there
CHAPTER IV: WORK – Article 89
Regarding the modifications of article 156
Paragraph 1 of Law 13 of 2003:
In the event of termination of relationships
work, the entrepreneur is obliged to pay money
severance pay and / or severance pay per period
job.
2. Is it true that UMP, UMK, UMSP were removed?
The facts: regional minimum wages (UMR) still exist
CHAPTER IV: WORK – Article 89
Regarding changes to article 88C of Law 13 of 2003:
(Verse 1) The governor sets wages
minimum as a safety net.
(Verse 2) Minimum wage as
mentioned in paragraph (1) is the provincial minimum wage.
3. Is it true that workers’ wages are calculated by the hour?
Fact: Nothing has changed with the current system. Salaries can be calculated based on time or based on results.
CHAPTER IV: WORK – Article 89
About changes to article 88B of the law
13 of 2003:
Salaries are determined based on:
to. unit of time; me
second. return unit.
4. Is it true that all leave rights (sick leave, marriage leave, circumcision leave, baptism leave, death leave, maternity leave) are lost and there is no compensation?
Fact: The right to leave remains.
CHAPTER IV: WORK – – Article 89
On changes to article 79 of the Law
13 of 2003:
(Verse 1) Entrepreneurs must give:
to. free time and
second. party.
(Verse 3) Let it be given to
workers / day laborers, i.e. annual leave, most
at least 12 (twelve) business days after
workers / workers interested in the job
for 12 (twelve) months continuously
continually.
(Paragraph 5) Other than rest and leave periods
as mentioned in the previous paragraph,
companies can provide sabbaticals
established in the employment contract,
company regulations or labor agreements
together.
5. Is it true that outsourcing is replaced by a lifetime contract?
Fact: Outsourcing to outsourcing companies is still a possibility. The workers become employees of outsourcing companies.
CHAPTER IV: WORK – – Article 89
About the changes to the article 66 paragraph
1 UU 13 Tahun 2003:
Labor relationship between subcontracting companies
with the workers / day laborers they employ
based on the working time contract
fixed-term or void work agreement
true.
6. Is it true that you will not have been a permanent employee?
The fact: employee status still exists
CHAPTER IV: WORK – Article 89
On changes to article 56 of the Law
13 of 2003:
(1) An employment contract is made for a specified or unspecified time.
7. Can the company be unilaterally fired at any time?
The fact: companies can’t make unilateral layoffs.
CHAPTER IV: WORK – Article 90
On changes to article 151 of the Law
13 of 2003:
(Verse 1) Termination of employment relationship
implemented based on an agreement
between employers and workers / day laborers.
(Paragraph 2) In terms of agreement
as mentioned in paragraph (1) no
achieved, liquidation of relationship separation
work performed by procedures
relationship dispute resolution
industrial in accordance with the provisions
legislation.
8. Is it true that social security and other social benefits are lost?
The fact: social security still exists.
CHAPTER IV: WORK – Article 89
On changes to article 18 of the law
40 of 2004:
The types of social security programs include:
to. health insurance;
second. Accident insurance;
C. old-age guarantee;
re. pension guarantee;
me. death penalty;
F. job loss guarantee.
9. Is it true that all employees are daily workers?
The fact: employee status still exists
CHAPTER IV: WORK – Article 89
About changes to paragraph of article 56
1 UU 13 Tahun 2003:
The employment contract is for a specified time.
or indefinitely.
10. Is it true that foreign labor can enter freely?
The fact: Foreign workers are not free to enter, they must comply with requirements and regulations.
CHAPTER IV: WORK – Article 89
About the changes to the article 42 paragraph
1UU 13 of 2003:
Any employer that is hiring
foreign workers must have
confirmation of energy use plan
foreign work of the Central Government.
11. Is it true that workers are prohibited from protesting, the threat of dismissal?
Fact: There are no restrictions.
12. Is it true that the holidays are only on the red date and there is no additional license?
The fact: For a long time, adding holidays beyond the red date was not regulated by law but by government policy.
