Differences in the content of the Labor Law and the Omnibus Law on Job Creation



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Jakarta, CNN Indonesia –

Day laborers continue to reject the ratification of the Legal Plan all the law Create job (Ciptaker) by DPR.

This is because the employment group provisions in the job creation bill are considered to have significantly undermined labor rights in Law No. 13 of 2003 on Labor.

So what is the difference between the Labor Law and the Ciptaker Omnibus Law that causes workers to protest?


Free time and go

1) Weekly rest

Article 79 subsection 2) letter b of the Labor Law establishes: “Weekly rest 1 (one) day for 6 (six) working days in 1 (one) week or 2 (two) days for 5 (five) days working in 1 (one week. “

While in the Labor Copyright Bill, article 79 paragraph (2) of letter b has undergone a change in which the rule of 5 business days is eliminated, so it says: 1 day of weekly rest for 6 business days in 1 week.

2) Long pauses

In article 79 subsection 2 letter d of the Labor Law, it is established that workers have the right to a prolonged break of at least 2 months and this is done in the seventh and eighth year of one month each if they have worked for 6 years without interruption in the same company.

The provisions: the worker / day laborer is no longer entitled to his annual rest in the current 2 years and, thereafter, it applies to each multiple of the 6-year work period. However, in the Draft Law for the Creation of Employment, the regulations related to the rights of extended leave are not regulated, but rather submit the rules to the company or are regulated through an agreed cooperation agreement.

SALARY

1) Unit salary and time

The Labor Law does not regulate unit wages or time. Meanwhile, in the Ciptaker Act, unit performance and time wages are regulated in Article 88 B. In paragraph (2) of Article 88 B, it is also explained that the additional provisions on unit performance and time wages are regulated in government regulations (pp).

2) Sectoral minimum wages and district / city minimum wages

In the Labor Law, the minimum wage is set at the provincial, regency / municipal and sector levels, which is regulated through article 89 and aims to achieve the dignity of life.

In this article, the provincial minimum salary is determined by the Governor taking into account the recommendations of the Provincial Salary Council and / or the Regent / Mayor. Meanwhile, the calculation of the components and the implementation of the stages to achieve the need for a decent life will be regulated by Ministerial Decree.

However, the Ciptaker Omnibus Law abolished this article and replaced it with article 88 C. In the replacement article, sectoral wages were abolished while the provincial minimum wage was set and determined by the governor based on economic and labor conditions. with certain conditions.

The economic and working conditions stipulated in article 88 C are based on data from the authorized institution in the field of statistics. Meanwhile, the specified conditions include regional economic growth and inflation in the regency / city in question.

Other provisions relating to the procedure for determining the minimum wage are regulated in government regulations. What has not changed is that the district / city minimum wage must still be higher than the provincial minimum wage.

In addition, the Ciptaker Omnibus Law also includes a new article, namely, article 90 B, which excludes minimum wage provisions for MSMEs. The wages of UMKM workers are regulated based on an agreement between workers and the provision of work, while additional procedures to set workers’ wages for MSMEs are further regulated through the PP

REPLACEMENT MONEY

In the Labor Law, compensation for rights is regulated in paragraph 4 of article 156. In the Ciptaker Bill, the provisions on compensation for rights that employers must pay as compensation for dismissal are reduced.

In the Labor Law, the compensation money consists of compensation for annual leave that has not been taken and has not been canceled; compensation for expenses or costs of returning workers / day laborers and their families to the place where they are accepted to work; and compensation for housing, as well as for medicines and care, which is established at 15 percent of the severance pay and / or payment for service for those who meet the requirements.

However, in paragraph 4 of article 156 of the Employment section of the Employment Omnibus Law, there are only two types of compensation for the rights that are required of employers, namely compensation for annual leave that has not been taken and have not been paid and costs or fees to return home for workers / workers and their families to the place where they are accepted to work.

Apart from that, compensation for the rights to be granted to workers falls into the category of “other matters stipulated in labor agreements, company regulations or collective bargaining agreements”.

SOCIAL GUARANTEE

1) Pension security

Paragraph 5 of article 167 of the Labor Law states that employers who do not include workers laid off due to retirement age in the pension program must provide severance pay of 2 times, a reward for working a time and compensation for rights. If this is not done, the entrepreneur will be subject to criminal penalties.

However, the Ciptaker bill eliminates the provisions on criminal penalties for these companies, namely, article 184 of the Labor Law which establishes that “Whoever violates the provisions referred to in article 167, paragraph 5) , will be punished with a prison sentence of a minimum of 1 (one) year and a maximum of 5 (five).) year. “

2) Guarantee for loss of employment

In the Ciptaker Omnibus Act, the government added a new social security program, namely Job Loss Guarantee, which is administered by BPJS Ketenagakerjaan on the basis of social insurance principles. This is established in article 82 of the draft law on job creation.

TERMINATION OF WORK RELATIONSHIP (PHK)

In the Labor Law, companies can layoffs for 9 reasons including: company goes bankrupt, company closes due to a loss, changes in company status, workers violate labor agreements, workers make serious mistakes , workers enter retirement age, workers resign, workers die, and workers absent.

In the Ciptaker Omnibus Law, the government adds points to the reasons why companies can layoffs in article 154 A.

Some of these reasons include: the company is making efficiency; the companies carry out a merger, consolidation, acquisition or separation; and the company is in a state of deferment of debt payment obligations (PKPU).

Then, the company commits an act that harms the workers; workers suffer a prolonged illness or disability due to work-related accidents and cannot perform their work after exceeding the 12-month limit; workers entering retirement age; and the workers died.

EMPLOYMENT SITUATION

Article 56 of the Manpower Law regulates a fixed-time employment contract (PKWT) for a maximum of 2 years, then it can be extended again within 1 year. Meanwhile, in the Ciptaker Omnibus Law, the provisions of article 59 were eliminated.

With the removal of this article, there are no restrictions on the rules of hiring a worker. As a result, these workers could become workers
lifetime contract.

WORKING HOURS

In the Labor Law, the maximum overtime work is only 3 hours a day and 14 hours a week. While in the Cipta Kerja Omnibus Law, overtime is extended to a maximum of 4 hours per day and 18 hours per week.

FOREIGN WORKERS

Articles 81, points 4 to 11 of the Ciptaker Law modify and repeal a series of regulations regarding foreign workers in Law Number 13 of 2003 on Labor.

For example, in the Ciptaker Act, the government eliminates the requirement of written permits for employers who wish to employ foreign workers. Instead, employers should only have a plan to use foreign workers.

[Gambas:Video CNN]

(hrf / sfr)



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