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JAKARTA Projected the population of Indonesia in 2022 according to data from the Central Statistics Agency to reach 275.77 million people, 143.72 million of whom are workforces. No wonder, when the Government Regulation in Lieu of the Law of the Republic of Indonesia Number 2 of 2022 concerning Job Creation (Perppu Cipta Kerja) was published on September 30, 2022, it was the labor chapter that received a lot of attention.

Perppu Cipta Kerja mengubah, menghapus, atau menetapkan peraturan baru beberapa ketentuan dalam UU sebelumnya, satu di antaranya UU Nomor 13 Tahun 2003. Seperti yang terdapat dalam pasal 80, sekadar untuk penguatan perlindungan, peningkatan peran, dan kesejahteraan para tenaga kerja dalam mendukung ekosistem investasi.

VOI noted several changes to the employment rules, namely:

The Job Creation Perppu amends Article 64 of Law Number 13 of 2003 which reads, Companies can hand over some of the work implementation to other companies through work chartering agreements or the provision of worker/labor services made in writing.

Becoming:

Perppu Cipta Kerja juga menghapus Pasal 65 dalam UU Nomor 13 Tahun 2003 yang mendiri tata seperti pemberian pekerjaan kepada perusahaan berlihan daya. Serta mengubah beberapa ayat dalam Pasal 66, seperti halas 1.

There are no more provisions, Workers/laborers from workers/laborers service providers should not be used by employers to carry out basic activities or activities that are directly related to the production process, except for supporting service activities or activities that are not directly related to the production process.

Article 66 paragraph 1 in the Job Creation Perppu is changed to, The relationship between a power transfer company and the workers/Labourers it employs is based on a written Work Agreement, both a certain time work agreement and an indefinite time work agreement.

Perppu Cipta Kerja removes the provisions in Article 156 paragraph 4 point C of Law Number 13 of 2003 concerning rights replacement money in the form of Replacement of housing and treatment as well as treatment and treatment is set at 15% (fifteen percent of the severance pay and/or service award money for those who meet the requirements.

Thus, the rights replacement money received by workers who have been laid off only includes:

In Article 156 paragraph 2 concerning the amount of severance according to the working period, the Job Creation Perppu no longer uses the least phrase, but changes it to, The severance pay as referred to in paragraph (1) is given with the following conditions...

The calculation of the amount of severance pay according to the working period in the paragraph is still the same. Likewise, the calculation of the term of service award money.

In Law Number 13 of 2003 Article 153, employers are prohibited from layoffing workers/laborers who have blood ties and/or marriage ties with other workers/laborers within one company, unless it has been regulated in work agreements, company regulations, or collective work agreements.

The Job Creation Perppu removes the exception, so it only reads, Entrepreneurs are prohibited from layoffing Workers/Labourers on the grounds of having blood ties and/or marriage ties with other workers/laborers in one company.

Coordinating Minister for the Economy Airlangga Hartarto, Coordinating Minister for Political, Legal and Security Affairs Mahfud MD, and Deputy Minister of Law and Human Rights Edward Omar Sharif Hiariej conveyed a press statement regarding the issuance of Perppu Number 2 of 2022 concerning Job Creation at the Presidential Office, Jakarta, Friday, December 30, 2022. (Indonesian Cabinet Secretariat)

The Job Creation Perppu changes article 79 paragraph 2 point D stated in Law Number 13 of 2003, The length of rest is at least 2 (two) months and is carried out in the seventh and eighth years, each 1 (one) month for workers/laborers who have worked for 6 (six) years on a continuous basis at the same company as the terms of workers/laborers are no longer entitled to their annual break in 2 (two) years and then apply to each work period multiple of 6 (six) years.

Changes are contained in Article 79 paragraph 5 of the Job Creation Perppu, In addition to rest time and leave, certain companies can provide long breaks stipulated in work agreements, company regulations, or collective work agreements.

Perppu Cipta Kerja removes several verses in Article 59. There is no longer any explanation regarding the mechanism of a certain time work agreement, as stated in Article 59 paragraph 4-7 of Law Number 13 of 2003, namely:

Paragraph (4), A certain time work agreement based on a certain period of time can be held for a maximum of 2 (two) years and can only be extended 1 (one) time for a maximum period of 1 (one) year.

Paragraph (5), Entrepreneurs who intend to extend the work agreement for a certain time, no later than 7 (seven) days before a certain time agreement ends, have notified the intended person in writing to the worker/labor concerned.

Paragraph (6), A renewal of a certain time work agreement can only be held after exceeding the grace period of 30 (twenty) days of terminating a long period of work agreement, this renewal of a certain time work agreement can only be done 1 (one) time and a maximum of 2 (two) years.

Paragraph (7), Work agreements for a certain time that do not meet the provisions as referred to in paragraph (1), paragraph (2), paragraph (4), paragraph (5), and paragraph (6) then by law become a work agreement of indefinite time.

The four paragraphs in the Job Creation Perppu are simplified to, Further provisions regarding the type and nature or nature of work activities, period of time, and time limit for extending certain work agreements are regulated in Government Regulations.


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