MUC Attorney at Law-Suryacipta, In Collaboration to Hold Webinar on The Government Regulation in Lieu of Law on Job Creation

JAKARTA. MUC Attorney at Law collaborated with PT Suryacipta Swadaya to hold a webinar with the theme "Understanding the Labour Cluster in Government Regulation in Lieu of Law (Perppu) No. 2 of 2022 on Job Creation.

The hybrid webinar took place on Wednesday (8/2) with speakers Senior Associate of MUC Attorney at Law Kiki Amaruly and Mawla Robby.

The theme of the Perppu on Job Creation was raised because many parties are still questioning the existence of this regulation, which replaces Law Number 11 of 2020 on Job Creation. Especially related to the labor cluster.

In her presentation, Kiki explained that Perppu is a regulation at the level of legislation issued by the President of the Republic of Indonesia, due to a compelling urgency.

The position of Perppu is equivalent to a law. However, to be able to replace a law, it must meet the stipulated conditions, namely, it must be approved by the House of Representatives (DPR) through an a plenary meeting.

"Until now the Government Regulation in Lieu of Law on Job Creation has not become a law, and the Job Creation Law has not been revoked," said Kiki.

There are several clusters or sections regulated in this Government Regulation in Lieu of Law on Job Creation, including: 

• Improving the investment ecosystem and business activities
• Employment
• Ease, protection, and empowerment of cooperatives and MSMEs
• Ease of doing business
• Research and innovation support
• Land acquisition
• Economic zones
• Central government investment and acceleration of national strategic projects
• Implementation of government administration
• Imposition of sanctions

Related to the labor cluster, several provisions are regulated such as specific time work agreements (PKWT), outsourcing, working time, overtime, rest time, and leave, regarding wages, termination of employment, and use of foreign workers.

Of the several provisions regarding labor, there are several that Kiki highlighted in her presentation. First, regarding outsourcing.

Regarding this matter, this Government Regulation in Lieu of Law on Job Creation re-regulates the restrictions on outsourcing activities by companies, which were originally regulated in Law Number 13 of 2003 and then deleted in the Job Creation Law. However, it is now re-regulated through the Government Regulation in Lieu of Law on Job Creation. "This regulation seems to answer the needs regarding outsourcing provisions in Law 13," said Kiki.

Some other provisions that Kiki highlighted regarding the Government Regulation in Lieu of Law on Job Creation are the determination of minimum wages and the application of the wage scale structure policy.

The Job Creation Law regarding wages is regulated in Government Regulation Number 36 of 2021, which removes provisions regarding sectoral minimum wages. 

Related to this, the Government Regulation in Lieu of Law on Job Creation does not change the provisions regarding sectoral wages. However, there is an affirmation regarding the conditions for determining the Regency / City Minimum Wage (UMK), which can be determined if the calculation result is higher than the provincial minimum wage.

Other things that are highlighted are the obligation to set long breaks while still paying wages and the terminology of persons with disabilities. (ASP/KEN)