- The amending of Law No. 13 of 2003 on Manpower (“Manpower Law”) has long been recommended and is presently in the spotlight once again as a number of businesses have complained that the current Manpower Law is too burdensome for them, particularly provisions which relate to severance pay, wages and the flexibility of employment relationships.
- The current Manpower Law has also been criticized by trade unions, including the Indonesian Trade Unions Alliance Congress (“KASBI”). KASBI Chairperson, Nining Elitos, has argued that many normative rights have been neglected by businesses in the wake of the issuance of the current Manpower Law, including minimum wage payments, severance pay and outsourcing.
- Dian Septi from the Indonesian Labor Union Confederation (“KPBI”) has proposed that the following matters be considered in relation to any possible revision of the Manpower Law: 1) The extension of outsourcing contracts from three years to five years; 2) The termination of flexible employment agreements which may lead to work terminations; and 3) The enforcement of severance payments, particularly as they relate to the minimum severance pay that must be paid by businesses.
- For more on this story, see: “Alasan Kalangan Buruh Tolak Revisi UU Ketenagakerjaan”.
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