The positive impact for non-permanent workers after Omnibus Bill Job Creation

The enactment omnibus bill job creation had drawn a lot of pros and cons among the public. Not only among the general public, even academics and legal practitioners are not in line in their attitude towards omnibus bill job creation, there are those who are pro and of course there are those who are contra. The pros and cons of this new regulation are justified, because certain articles are not spelled out in detail. The detailed description regarding the implementation of this regulation will be submitted to the Implementing Regulation.

Apart from the pros and cons of omnibus bill job creation, there are actually some changes that benefit workers, in this case contract workers who are bound by a Fixed-Time Work Agreement. According on  Law Number 13 of 2003 on Manpower, regarding contract workers, there is nothing that regulates compensation for non-permanent workers.

Omnibus bill job creation added in Article 61A that companies should provide compensation to non-permanent workers whose contracts have expired. The compensation is given based on years of service. It is necessary to underline that this compensation is only valid for non-permanent contracts that expire due to a certain period of time and completion of a certain job. If the worker dies, the employer is not obliged to provide compensation.

Although the Implementing Regulation  of non-permanent workers compensation doesn’t exist yet, at least in omnibus bill job creation, there is already a basis for providing compensation to contract workers. Implementing regulations is the key for the execution of non-permanent workers compensation, at least the implementing regulation will arrange the amount of compensation along with the procedures related to the provision of compensation.

The question that arises when the work period related to compensation is being calculated. To answer this question, the answer is from the enactment of the omnibus law. For example, a non-permanent worker signs a contract for 1 year, and the contract is signed 2 months before the enactment of the omnibus law, then the calculation of the working period related to compensation is calculated after this new regulation comes into effect. It can be concluded that the worker at the end of his tenure will be compensated based on a ten month service period. 2 months working period is not counted because it was implemented before the enactment of the omnibus law.

Another question then arises, whether prior to the enactment of the implementing regulation for non-permanent workers is entitled to compensation. Workers ‘rights and employers’ obligations regarding compensation emerged after the enactment of the omnibus law. Even though a non-permanent worker ends before the enactment of the implementing regulation, the worker still gets compensation, it’s just that the implementation of the award should be postponed by the employer until the implementing regulation is in place. Why is it postponed, because it is feared that if the compensation will be less than the minimum limit of the regulations, there will be many demands on entrepreneurs.

Regarding rights and obligations regarding compensation, employers should provide an explanation to workers, especially for non-permanent workers ended after the omnibus law but before the enactment of the implementing regulation, this is so that there is no misunderstanding between employers and workers. Delay in giving does not mean that the entrepreneur does not carry out good faith, on the contrary, the delay is intended to prevent errors in providing compensation because the implementing regulation for omnibus law haven’t existed yet.

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