The Minister Of Manpower Calls A Job Creation Perpu Protects Labor, There Is A Guarantee On Outsourcing To A Minimum Wage

Minister of Manpower, Ida Fauziyah (Photo of ministry page)

JAKARTA - Perpu Number 2/2022 concerning Job Creation has been issued. This Perpu is the government's commitment to providing labor protection and business continuity to answer the challenges of developing employment dynamics.

The Minister of Manpower, Ida Fauziyah, said that the substance of employment regulated in the Perpu is basically a refinement of the previous regulation, namely Law 11 of 2020 concerning Job Creation.

"The improvement in the substance of employment contained in Perpu 2/2022 is actually an effort by the government in providing adaptive protection for workers/laborers in facing increasingly dynamic employment challenges," said the Minister of Manpower through a press release from the Public Relations Bureau of the Ministry of Manpower, Wednesday, January 4.

The substance of employment that is perfected in this Perpu includes, among others, the first, the terms of outsourcing. The Job Creation Law does not regulate restrictions on the types of work that can be transferred, while in this Perpu, the types of outsourcing work are limited.

"With this arrangement, not all types of work can be submitted to outsourced companies. Later, the types or forms of work that can be transferred will be regulated through Government Regulations," said the Minister of Manpower.

Second, the improvement and adjustment of the minimum wage calculation. The minimum wage is calculated taking into account the economic growth, inflation, and certain indexes. The minimum wage calculation formula including certain indexes will be regulated in the PP.

At this Perppu, it is emphasized that the governor is obliged to set the Provincial Minimum Wage. The governor can also determine the UMK if the results of the calculation of the UMK are higher than the UMP.

"The word 'can' referred to in the Perpu must be interpreted that the governor has the authority to determine the UMK if the calculation result value is higher than the UMP," said the Minister of Manpower.

Third, affirming the obligation to implement a wage structure and scale by employers for workers/laborers who have a working period of 1 year or more.

Fourth, related to the use of terminology of disability which is adjusted to Law 8/2016 concerning Persons with Disabilities.

Fifth, improvement of referrals in articles that regulate the use of the right to rest time whose wages are still paid in full, and related to the benefits of the Job Loss Guarantee program.

The Minister of Manpower explained that the changes related to the substance of employment referred to the results of the aspirations of the Job Creation Law carried out by the Government in several regions, including Manado, Medan, Batam, Makassar, Yogyakarta, Semarang, Balikpapan and Jakarta. At the same time, studies have been carried out by various independent institutions.

"Based on these matters, the Government then discussed the substance that needs to be changed. The main considerations are job creation and improvement, protection of workers/laborers and also business continuity," said the Minister of Manpower.