Selasa, September 29, 2020

DPR Announces Minor Changes to Employment Cluster in Draft Bill on Job Creation

Firman Soebagyo, a member of the Legislation Agency at the House of Representatives (Dewan Perwakilan Rakyat – “DPR”), has issued a recent statement affirming that the DPR and the Indonesian Government have now reached agreement on a number of points relating to the employment cluster, as addressed under the Draft Omnibus Law on Job Creation (“Draft Bill”), specifically the issues of severance pay, the minimum wage and unemployment insurance.
In his statement, Mr. Soebagyo revealed that one of the points that has now been agreed concerns severance pay, which is to be set at 32 times the relevant salary. Employers will be responsible for 23 times the relevant salary payments, while the remaining nine salary payments are to be borne by the government.
In a separate statement, Supratman Andi Agtas, Chairman of the DPR Legislation Agency, guaranteed that minimum wages at the district and city levels will be determined through a consideration of inflation and will not be grouped by sector.
Unemployment insurance, old-age insurance and work-accident insurance will also be addressed under the Draft Bill. Meanwhile, unemployment insurance will be subsidized through wages and will involve the use of data provided by the Social Security Administrator for Employment (Badan Penyelenggara Jaminan Sosial Ketenagakerjaan/BP Jamsostek).
Mr. Agtas added that fixed-term employment contract workers (Pekerja Kontrak Waktu Tertentu/PKWT) are to be afforded a set level of protection and certainty, including in relation to outsourced workers. The unemployment-insurance scheme and relevant payments are to be further regulated by the government, although it is expected that the current provisions will not be amended too heavily. _(ANT)

......

Subscribe to read more legal analysis.

Hukumonline Pro Intelligence

Platform AI hukum terpercaya sebagai solusi komprehensif riset Anda

Professional Solutions

University Solutions

Pro

Rp 5.000.000 /bulan

Jadwalkan Demo

Lihat Detail

Pro AI

Terfavorit

Rp 8.200.000 /bulan

Jadwalkan Demo

Lihat Detail

Pro Compliance

New

Rp 12.500.000 /bulan

Jadwalkan Demo

Lihat Detail

*Syarat dan ketentuan berlaku

Firman Soebagyo, a member of the Legislation Agency at the House of Representatives (Dewan Perwakilan Rakyat – “DPR”), has issued a recent statement affirming that the DPR and the Indonesian Government have now reached agreement on a number of points relating to the employment cluster, as addressed under the Draft Omnibus Law on Job Creation (“Draft Bill”), specifically the issues of severance pay, the minimum wage and unemployment insurance.
In his statement, Mr. Soebagyo revealed that one of the points that has now been agreed concerns severance pay, which is to be set at 32 times the relevant salary. Employers will be responsible for 23 times the relevant salary payments, while the remaining nine salary payments are to be borne by the government.
In a separate statement, Supratman Andi Agtas, Chairman of the DPR Legislation Agency, guaranteed that minimum wages at the district and city levels will be determined through a consideration of inflation and will not be grouped by sector.
Unemployment insurance, old-age insurance and work-accident insurance will also be addressed under the Draft Bill. Meanwhile, unemployment insurance will be subsidized through wages and will involve the use of data provided by the Social Security Administrator for Employment (Badan Penyelenggara Jaminan Sosial Ketenagakerjaan/BP Jamsostek).
Mr. Agtas added that fixed-term employment contract workers (Pekerja Kontrak Waktu Tertentu/PKWT) are to be afforded a set level of protection and certainty, including in relation to outsourced workers. The unemployment-insurance scheme and relevant payments are to be further regulated by the government, although it is expected that the current provisions will not be amended too heavily. _(ANT)

......