Draft of Job Creation Law as Omnibus Law

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Draft of Job Creation Law as Omnibus Law

In order to embody the country’s objective to build a prosperous, equal, and wealthy society, the government has issued various regulations as a basis for the activities implementation so the activities may remain limited thus security and public order may remain intact. Omnibus Law is a method to create a regulation accommodating various stipulations from other regulations into one statutory regulation to produce a comprehensive regulation for solving various problems. In 2020, the Indonesian government drafted the Omnibus Law, which also known as the Draft of Job Creation Law (“DoJC Law”). On 05 October 2020, DoJC Law has been ratified by the People’s Representative Council (“PRC”). The latest draft which published is 812 pages long. The DoJC Law which has been ratified and published has not been promulgated by the President of Indonesia. Therefore, DoJC Law is not yet in effect, because based on Article 186 of DoJC Law, this regulation will only take effect on the date of its promulgation.

Job creation is a regulation which formed for the purpose of creating the widest possible employment opportunities for Indonesian people evenly, and to fulfill the right to a decent living for people. Based on Article 1 paragraph 1 DoJC Law explains that the efforts of creating jobs through convenience effort, protection, and empowerment of Cooperative and Small, Micro, and Medium Enterprises, investment ecosystem increation and simplicity in business, also Central Government investment and acceleration of national strategic projects.

DoJC Law is formed to create and to increase the employment, to guarantee that the Indonesian citizens could afford a paid job with fair treatment, adjustment in aspects in connection to alignments, affirmation, and protection for the Cooperative, Small, Micro, and Medium Enterprises along with national industry, and adjustment for the aspects in relation to investment ecosystem creation, also simplicity and acceleration of national strategic projects which oriented to national interest. DoJC Law regulate the following matters, which are:

  1. Investment ecosystem and business activitie increasement;
  2. Manpower;
  3. Simplicity, protection, and empowerment of Cooperative and Small, Micro, and Medium enterprises;
  4. Business simplification;
  5. Research supporting and innovation;
  6. Land acquisition;
  7. Economy area;
  8. Central Government investment and acceleration of national strategic projects;
  9. Government administrative implementation;
  10. Penalty.

DoJC Law accommodated various changes, addition, or removing some rules which previously regulated on various regulations. DoJC Law is not entirely changing or removing the whole rules which regulated in various regulations. For example, there are various changes in Law Number 13 of 2003 concerning Manpower (“Law 13/2003”) in DoJC Law, which are:

No.

Subject

 Law No. 13 of 2003

Draft of Job Creation Law

1.

Period of Definite Working Time

Regulated on Article 59 paragraph (1) letter b, which explains:

“Jobs expected to complete not too long and 3 (three) years at the maximum.”

This rule is changed to Article 59 paragraph (1) letter b to not too long period of time.
2.

Outsourcing workers may be employed as definite working period or indefinite working period.

This rule is regulated on Article 66.

Article 66 Law 13/2003 is deleted / not regulated under DoJC Law.

3.

To perform worship, rest time for female workers/labours in the menstruation period, and rest time for giving birth.

The rules are regulated on Article 80, 81, and 82.

This rule is not regulated on DoJC Law. But DoJC Law is not removing the previous rule which regulated on Law 13/2003.

4.

Severance pay due to the discontinuation of work relation.

It is regulated on Article 156 which minimum calculation.

Severance pay is still regulated on Article 156 on DoJC Law.

 

If DoJC changes or deletes the rules which previously regulated on prevailing regulation, therefore the prevailing rules are the rule which regulated on DoJC Law, or known as lex posterior derogat legi priori, which is a law interpretation that explains the new law will put aside the previous law. But, if DoJC Law does not delete or change the rules which regulated on the previous regulation, therefore the previous regulation is the prevailing regulation. The changes rules on DoJC Law is also affected the technical regulations, which must be adjust to the rules in DoJC Law in maximum to 3 (three) months as mentioned on Article 185 DoJC Law. Furthermore, if there are Parties have objection after DoJC Law is promulgated, then the Parties may file for Judicial Review to Constitution Supreme. Judicial Revie is a method to examine material parts in the regulation which considered bring damages to people. Therefore, Judicial Review due to objection towards DoJC Law may file to Constitution Supreme as the authorized institution to examine the statutory regulation.

In conclusion, DoJC Law is not deleting or changing rules in connection to job creation completely. DoJC Law is formed as an Omnibus Law to complement the previous regulations with adjustment to society changes. DoJC Law is not yet take effects because it has not been promulgated by the President of Indonesia. If there is a rule which considered contradict to the public interest. Therefore, to convey the objection, the Parties may file Judicial Review to Constitution Supreme to examine the material parts of DoJC Law/Judicial Review.

 

This Article is generally made for the purpose of ANR Law Firm publication only and should not be treated as legal advice for your legal problem. Shall you have any further questions regarding this topic, you may contact the Advocates who authored this article at anrlawfirm@anr-lawfirm.com.

Authors: Seruni Firdaus, S.H., Anita Khoirunisa, S.H., Nabawi, S.H.

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