KSP: There Are No Contract Employees For Life In The Job Creation Law

JAKARTA - The Presidential Staff Office emphasizes that there is no application of 'Lifetime Contract Employees' in Law No.11 of 2020 concerning the Job Creation Act (Ciptaker Law).

Deputy Chief Expert III at the Presidential Staff Office, Fajar Dwi Wisnuwardhani, said that in the Ciptaker Law that was signed by the President of the Republic of Indonesia Joko Widodo, the Specific Time Work Agreement (PKWT) was still timed.

He emphasized that this is stated in Article 56 paragraph 4 of the Job Creation Law, in which the article explains further provisions regarding a certain period of time work agreement based on the period of time or the completion of a certain job is regulated in a Government Regulation (PP).

"Who said that PKWT is for life? PKWT is still timed and will be determined through PP," Fajar said in a press release in Jakarta, reported by Antara, Wednesday, November 4.

Fajar said, in terms of the cancellation of the PKWT due to a probationary period, apart from being canceled by law, the Ciptaker Law also legalizes the calculation of the working period that has been carried out.

This explanation can be seen in Article 58 paragraph 2 which reads, "In the event that a probationary period of work is required as referred to in paragraph (1), the required probationary period is null and void and the work period is still counted".

On the other hand, the Government also asked the public not to worry about severance pay. The Ciptaker Law also continues to apply the severance pay system for workers affected by Termination of Employment (PHK).

Fajar said that Article 61A of the Ciptaker Law explains that PKWT workers can get compensation, which is calculated similar to severance pay.

As regulated in Article 61A paragraph 1, which reads "In the event that the work agreement for a certain period of time ends as referred to in Article 61 paragraph (1) letter b and letter c, the entrepreneur is obliged to provide compensation money to the worker / laborer".

This is also reaffirmed in Article 61A paragraph 2 which reads "Compensation money as referred to in paragraph (1) is given to workers / laborers according to the work period of the workers / labor in the company concerned". In addition, Article 61A paragraph 3 explains how the compensation money will be regulated again in a Government Regulation.

The Ciptaker Law is also a legal umbrella for imposing sanctions on employers who do not pay their workers' severance pay. Article 185 of the Ciptaker Law explains that there will be penalties for not paying severance pay.

In fact, he said, workers can ask for dismissal with severance pay if there are problems with violations of work norms by employers as stipulated in Article 154A paragraph g.

In addition, Fajar stated, the Ciptaker Law guarantees that people who lose their jobs can immediately enter the world of work again.

"This is done through training and counseling, and of course cash benefits whose value is calculated based on the last wage," he said.

According to Fajar, the structure and scale of wages are mandatory in the Ciptaker Law. So that it can increase productivity and healthy competition among workers in accordance with Article 92 of the Ciptaker Law.