APINDO: The Job Creation Law Require Employers To Pay Compensation For Contract Employees

JAKARTA - The Omnibus Law on Cipta Kerja continues to receive rejection from the public, including labor unions, after being passed some time ago. The broom-sweep law is considered to be tormenting the people and actually benefiting entrepreneurs.

Chairman of the Committee on Labor and Social Security for Wages, the Indonesian Employers' Association (APINDO), Aloysius Budi Santoso, spoke up on the issue. He said that it was not true that the Omnibus Law on Job Creation only concerned the interests of entrepreneurs.

Budi said, the Work Creation Omnibus Law was made by taking into account all input from both employers and trade or labor unions. In the deliberation process, the government even records any input that does not reach an agreement to be discussed at the House of Representatives (DPR).

"Basically, we first gave input to the government. Then the labor union gave input, the government answered and if they did not meet, it was recorded. That was what the government brought in discussions with the parliament. That's the real mechanism that happened in the negotiation process," he said in the discussion virtual, Friday, October 9.

According to Budi, the Omnibus Law on Employment Creation actually contains new regulations specifically for entrepreneurs related to the welfare of contract employees, which were not previously included in Law Number 13 of 2003 concerning Manpower.

"In the Job Creation Law the government even said that if we employ contract workers, once the worker is finished we have to provide compensation. So in the old law there was no compensation. Now we as employers must provide compensation," he said.

Budi said, for a certain time work agreement (PKWT), it is not much different from Law Number 13 of 2003. However, there are some changes in the Job Creation Law.

Previously, Law Number 13 of 2003 concerning Manpower stipulated that PKWT was limited, first a maximum of 2 years and a maximum extension of 1 year or a maximum extension of 2 years after a 30-day gap. Meanwhile in the Job Creation Law, this has not been regulated.

"But if there is information in the public that we entrepreneurs can make contracts for life, that's not right. So this PKWT cannot be implemented if the derivative regulations have not been formulated and signed by the president. So there must be a derivative PP," he explained.

Budi also emphasized that both Law Number 13 of 2003 and the PKWT Job Creation Law are still made for certain jobs, which according to the type and nature or activity of the work will be completed within a certain time.

"Contracts are not made for all of them. For certain matters, we hope that the timeframe can be longer and indefinitely like now. But frankly, there is still a PP that must be fought for," he said.