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Jakarta –
all the law DPR approved the Job Creation Bill on Monday (10/5/2020). The ratification took place in the seventh plenary session of the 2020-2021 trial period. The meeting was attended by 318 DPR members, both in the parliament complex, Senayan, Jakarta, and virtually.
The job creation bill is one of four all the law proposed by the government to the DPR. Three all the law Other bills are on taxes, the new capital and pharmacy. All these proposals are included in the National Legislation Program 2020 (Prolegnas).
Drought all the law The Employment Creation Law was formulated by the Legislative Body (Baleg) of the DPR RI together with the DPD RI and the government. These institutions then agreed to carry out all the law The Job Creation Bill was taken to the Plenary of the House of Representatives on Monday (10/5/2020) for approval.
all the law It is claimed that it aims to overcome economic and business problems, especially with regard to job creation in Indonesia. However, after its passage, this bill became a hot topic of discussion, especially its impact on Indonesian society.
Although all the law The Employment Creation Law was approved, the wave of resistance from labor worker groups has not abated. Although office workers are also affected, there has been no reaction from office workers.
Here are some points all the law The Employment Creation Law that has been rejected, especially by labor groups:
1. Cut the holidays
The right of workers to have two days off the previous week, which was regulated in the Manpower Law, was cut. Article 79, paragraph 2, letter b), regulates that workers are obliged to have a weekly rest period of one day for six working days in a week.
Article 79 also eliminates the obligation of the company to provide two months of rest to workers who have worked for six consecutive years and applies every multiple of the six-year work period.
Article 79, paragraph 3, only provides for the granting of annual leave of at least 12 working days after the worker or day laborer for 12 continuous months.
Article 79, section 4, establishes that the implementation of annual holidays is regulated in labor agreements, company regulations or collective bargaining agreements. Then, article 79, paragraph (5), establishes that certain companies can offer prolonged breaks that are regulated in labor agreements, company regulations or collective bargaining agreements.
2. Employment contract
The Omnibus law removes the rules on the period of a fixed-term employment contract (PKWT) or contract workers.
In paragraph 4 of article 59 of the Employment Creation Law, additional provisions on the type and nature or activity of work, the period and the time limit for the extension of the employment contract for a certain period of time They are regulated by a government regulation.
Previously, the Manpower Law stipulated that PKWT could be maintained for a maximum of two years and could only be extended once for a maximum period of one year. This new provision has the potential to affect the power and discretion of employers to maintain the status of contract workers indefinitely.
3. Penalties for companies that do not pay wages in accordance with the provisions are eliminated
Article 91 paragraph (1) of the Employment Law provides that the stipulation of employment under the agreement between the employer and the employee shall not be less than the provisions of the stipulation provided by the applicable legislation.
Article 91 paragraph (2) establishes, if the agreement referred to in paragraph (1) is minor or contradicts legal regulations, the agreement is null and void, and the employer is obliged to pay the salary of the worker / worker in accordance with the laws and regulations in force.
And article 91 also explains in article 90 of the Manpower Law the norms regarding the prohibition of paying the amount of wages under the provisions. However, in the Employment Creation Law, the provisions of the two articles of the Labor Law are completely abolished.
4. Article related to severance pay
What is also under discussion in the Ciptaker Act is severance pay (PHK), which is reduced from 32 times the salary to 25 times the salary, with details of 19 times the salaries paid by the employer and 6 times the salaries covered. through the Job Loss Guarantee (JKP) program.
The Secretary General of the Indonesian Workers’ Organization (OPSI), Timboel Siregar, said that the severance pay was only for workers with a working day of more than 24 years and for certain reasons. Therefore, not all workers have so far enjoyed the severance pay amount.
“32.2 times the salary is the highest severance pay and is obtained for workers who have a working age of 24 years or more. The reasons for their dismissals are also true, one for death, two for retirement, three for layoffs for efficiency, four because the merged companies cannot join new companies, so not all layoffs (get 32.2 times the salary), “said Timboel
5. Article on protection and management of the environment
One of the articles of the Ciptaker Act revises the Environmental Protection and Management Act (PPLH), including the powerful article that traps forest burners.
Based on the cited draft of the Employment Creation Law Project detikcomOn Monday (05/10/2020), one of the articles that was revised was article 88 of the Environmental Protection and Management Law, known as the Absolute Responsibility Article.
In its entirety, this is the official Employment Creation Law of the Coordinating Ministry of Economic Affairs that can beto download here.
Workers fluctuate after the job creation law is passed:
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