Omnibus Law Effected Work Fields

Omnibus Law Effected Work Fields On this occasion we will provide several articles relating to the discussion of Omnibus Law Impacting Employment. Some articles that we will present to you this time, can be very helpful if you want to find information related to the Omnibus Law Impacts on the Job Field And on this occasion we will provide several articles that discuss and review the Omnibus Law Impacts on the Job Field

1. Problems in the labor sector
In the discussion, Deniey mentioned a number of labor issues. Starting from the wage system, social security, severance pay, outsourcing, trade unions and setting minimum wages.

“Not to mention the various labor issues that until now do not have a clear legal umbrella. With its equality with the law, the Omnibus Law structure designed by the government by combining investment climate and employment needs to be reconsidered, “he said.

2. Miss and match the world of work with the world of education
In addition to the various problems above, Deniey also criticized the problem of employment mismatch between the competencies generated by the world of education and the competencies needed by the industry both vertically and horizontally.

He said vertical mismatch occurs when workers work in jobs below or above their educational qualifications. While horizontal mismatch occurs when workers work in jobs outside their field or educational competence.

Data from the International Labor Organization (ILO) estimates that from 2006 to 2016, total vertical employment mismatches are in the range of 37 percent annually.

Furthermore, with the same basic data (Sakernas 2016) and specializing in tertiary education graduates, the SDGs Center of Padjajaran University revealed in his study that the level of employment mismatch among young workers, especially millennials, was quite high and even higher than generations. previous.

“In the study, it was revealed that about 45.58 percent of millennials work in jobs that are lower qualified than their background (over education) and around 16.85 percent of millennials work in jobs that are not related to their educational background or competency owned (unrelated employment), “said Deniey.

3. Impact of employment mismatch
One effect of this employment mismatch is the low level of wages. Deniey said, based on the INDEF study, related to wage disparitation showed that the higher the education level of the workforce, the higher the wage disparity.

“For example, between young and adult age groups, the disparity in wages for elementary school graduates is around 11.22 percent, while for college graduates it is around 54.99 percent,” he said.

In addition to wage disparity between age groups, wage disparity between genders is also a crucial issue in the Indonesian labor market. “Our study also indicates that there is still a high disparity in gender wages leading to discrimination,” he said.

Jokowi said the government would invite the House of Representatives to issue the Employment Copyright Law and combine a number of related laws in one law, aka the Omnibus Law. The former Governor of DKI Jakarta at that time said Omnibus Law would simplify the rules or regulations that are complicated so that it impedes investment. However, the Draft Omnibus Law reaps polemic, what are the controversies?

1. Minister of Home Affairs can fire regional heads
The authority to impose sanctions for reprimand and dismissal of regional heads by the Minister of Home Affairs is listed in Article 520. In paragraph 1 of that article, regional heads who do not carry out the national strategic program as referred to in Article 67 letter f are subjected to administrative sanctions in the form of written warnings by the Minister of Home Affairs.

In paragraph (2), the Minister of Home Affairs has the authority to dismiss for three months the regional head who does not heed the written warning. Then in paragraph (3), the Minister of Home Affairs is given full power to dismiss regional heads who are still not compliant.

Meanwhile, Mendari Tito Karnavian ensured that there was no such article in the draft omnibus law. If there is such an article, Tito will take it down from the draft omnibus law.

“First, I want a correction in the employment law omnibus bill, I have checked that there is no article regarding the dismissal of the regional head by the Minister of Home Affairs or the President. Even if there were, we would not … I as the Minister of Home Affairs requested that they be dropped (dropped), “said Tito at the DPR RI Complex, Tuesday (1/22)

Tito argued that the dismissal of the governor or regional head had been discussed in Law 23 of 2014 concerning Regional Heads. In the Act, the process of dismissing the regional head is regulated.

“Why? Because there is already a law, Law Number 23 of 2014 concerning Regional Heads, read articles 67, 68, 69, 76, to 89. It contains information that the regional head is dismissed by the President, one if he dies, two if he resigns “The third one was dismissed,” said Tito.

“One of the reasons for being dismissed is because of not implementing a national strategic program, the second is for example leaving consecutive places without permission for 7 days or not being consecutive for one month, the first warning, the second warning, it can be temporarily dismissed for three months,” he continued.

2. Severance pay will be removed
In the draft Omnibus Law Cipta Karya Kerja, there are 11 clusters, among others; simplification of licensing, investment requirements, employment, ease of empowerment and protection of MSMEs, ease of doing business, research & innovation support, government administration, imposition of sanctions, land acquisition, investment and government projects and economic zones.

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One that is also in the public spotlight is related to rumors about the draft Omnibus Law Copyright Employment Cluster, especially related to the elimination of severance pay.

The Minister of Manpower, Ida Fauziyah, denied the government would eliminate severance in the Omnibus Law. According to him, the contents of the Omnibus Law will be delivered by the Coordinating Ministry for Economic Affairs.

“Nope. It’s not true severance pay is eliminated, “Ida said in Jakarta, Tuesday (1/14).

Meanwhile, in the draft related to the Omnibus Law draft of the employment cluster concerning Termination of Employment (PHK), it was written if the laid-off employee continued to receive layoff compensation.

The following complete contents of these rules:

Main Policies related to termination of employment (FLE):

– Continue to provide protection for workers affected by layoffs
– Workers affected by layoffs still receive layoff compensation.

a. The government added the Job Loss Guarantee (JKP) for the protection of workers who were laid off.
b. JKP provides benefits in the form of: 1) Cash Benefit, 2) Vocational Training, 3) Job Placement Access.
c. Adding JKP benefits does not add to the burden of contributions for workers and companies.
d. Workers who get JKP, will still get other social security in the form of: 1) Work Accident Insurance (JKK), 2) Old Age Insurance (JHT), 3) Pension Insurance (JP), 4) Death Insurance (JKm).
e. To provide protection for contract workers, treatment is given in the form of compensation for termination of employment.

3. The labor wage scheme is changed to hourly
The Omnibus Law also changed the rules for wage schemes per month to hourly, creating constitutional conflict. Both the 1945 Constitution and Law No. 13 of 2003 concerning Employment wage article.

The change in hourly wage schemes, according to many observers, will make the existence of UMP eroded and will slowly disappear. It is feared that the company will behave arbitrarily over the wages given to workers. Then it will have an impact on the poor.

Social security which is imposed on the existence of UMP standards, will certainly be abolished. This happens because employers feel they no longer have the responsibility for paying social security anymore.

Meanwhile, Coordinating Minister for the Economy Airlangga Hartarto said the hourly salary scheme did not apply to all workers and the state apparatus. The scheme is aimed at the service sector such as consultants and part-time workers.

“If the factory workers keep a monthly salary,” said the Coordinating Minister for Airlangga in Central Jakarta, Friday (12/27/19).

The Coordinating Minister for Airlangga explained, workers who had received monthly salaries would not be affected by this discourse. They will still be paid according to the minimum wage set.

4. Remove the minimum wage
The Chairperson of the Confederation of Indonesian Trade Unions (KSPI) Said Iqbal said there were six reasons why workers or workers rejected the Omnibus of Employment Copyright created by the government. One of them refused to abolish the minimum wage system.

“The Omnibus Law suggests that it will abolish the minimum wage system,” he said during a rally in front of the MPR, DPR and DPD RI Building in Jakarta, Monday (21/1).

He said the application of hourly wages would result in minimum wages being degraded or even lost. “Obviously it is detrimental to the workers and workers in the country,” he said.

5. The government continues to look for a balanced point Omnibus Law copyright employment
The government continues to look for a balanced point between the interests of workers and the interests of employers in the employment omnibus law.

“Looking for this balance point through joint efforts, there cannot be one party, but both parties have the same passion,” Presidential Chief of Staff Moeldoko was quoted as saying by Antara news agency on Saturday (1/25).

According to Moeldoko, the omnibus law was submitted to the Indonesian Parliament with the aim of creating jobs and structuring taxes. Omnibus law is also expected to provide certainty and comfort for workers.

Moeldoko assessed the substance of the omnibus law needs to be known in depth by the workers. He explained that understanding the substance needs to be done by sitting together explaining the direction of the omnibus law.

“It is precisely the substance circulating whose contents are incorrect. Pregnant leave is said to be eliminated, even though Mr Airlangga said no. Then more importantly there will be a meeting that can accommodate all parties, who can listen. The substance is not to be confused, “said Moeldoko.

He has held discussions with several trade unions who expressed dissatisfaction with the omnibus law creation process in employment law. Moeldoko added that President Jokowi had given instructions for the omnibus law design to listen to the aspirations of the people.