Full explanation from the House of Representatives on the Employment Creation Act, from the rules for leave to severance pay

Liputan6.com, Jakarta – DPR RI received much criticism and protests following the inauguration of the Omnibus Law Craft Law (UU) Law Plan (RUU) on Monday, October 5, 2020 yesterday.

Several unified workers / unions reject the publication of the Job Creation Act for various reasons. Starting with the elimination of the Regency / City Minimum Wage (UMK), the elimination of the right to leave and the right to salary during leave, to become an entry point for foreign workers (TKA) to come to Indonesia mass.

Responding to the rejection row, DPR attempted to provide a summary of responses to Liputan6.com, Tuesday (10/6/2020). The House of Representatives tries to answer all the details of the workers’ objections to the enactment of the Copyright Act.

First, the issue of UMK and District / City Sector Minimum Wages (UMSK) that will be eliminated. According to the explanation of the DPR, the minimum wage is determined taking into account the viability of life of the worker / day laborer taking into account the aspects of regional economic growth or regional inflation.

“The Provincial Minimum Wage (UMP) MUST be determined by the Governor. The Regency / City Minimum Wage (UMK) REMAINS THERE,” wrote DPR.

Meanwhile, for UMSK, after the Labor Copyright Act is passed, the sectoral minimum wage will continue to apply for the district that has established it. So for employees who have received UMSK higher than UMK it cannot be lowered.

Second, related to the reduction of severance pay from 32 to 25 times. DPR said the government continues to ensure that severance pay is truly a right and can be accepted by workers / workers.

In this case, the Employment Creation Law gave rise to a Job Loss Security scheme (JKP) that did not reduce the benefits of other social security benefits, such as Occupational Accident Security (JKK), Security for Death (JKM), Old Age Security (JHT) and Pension Security.

“JKP does not increase the burden on workers / needy. The KKP program in addition to providing cash benefits also provides other benefits, namely increasing skills and experience through training and access to employment information,” said the DPR.

Other than that, DPR also outlined the requirements for termination of employment (PHK), which still adhere to the provisions of the Manpower Act.