ARMA Update

Omnibus Law (Vol 3): Employment


On 5 October 2020, the House of Representative passed the Job Creation Law (known as “Omnibus Law”). The Omnibus Law is expected to enhance the ease of investment in Indonesia through some amendments on various laws.

In this ARMA Update Volume 3, we discuss further related to laws concerning Employment which one of the crucial substances in the Omnibus Law. In the Employment cluster, Omnibus Law amended 3 (three) laws, namely (i) Law No. 13 of 2003 on Employment, (ii) Law No. 40 of 2004 on National Social Security System, (iii) Law No. 24 of 2011 on Social Security Institution; and (iv) Law No. 18 of 2017 on Protection of Indonesian Migrant Workers.

Some of those amendments that we discuss among others, use of foreign workers, employment agreements, outsourcing companies, working hours and leave, wages, termination of employment or layoffs, and the imposition of sanctions.

ARMA Law provides this update regarding this topic both in English (here) and Bahasa Indonesia (here).

In the meantime, our team has been continuously monitoring the Omnibus Law and its implementing regulations. Until the date of the publication of this ARMA Update, the Omnibus Law has not come into effect, as the President of Indonesia has not yet signed the law. Thus, the entire analysis herein is based on the publicly available final draft.


Omnibus Law (Vol. 3):


Pada tanggal 5 Oktober 2020, Dewan Perwakilan Rakyat telah mengesahkan Undang Undang Cipta Kerja (atau yang dikenal dengan “Omnibus Law”). Dengan adanya Omnibus Law diharapkan dapat memberikan kemudahan berinvestasi di Indonesia melalui perubahan berbagai macam undang-undang.

Dalam ARMA Update Vol 3 ini, kami membahas lebih lanjut perubahan undang-undang terkait dengan Ketenagakerjaan yang merupakan salah satu substansi yang krusial dalam Omnibus Law. Dalam klaster Ketenagakerjaan, Omnibus Law mengubah 3 (tiga) undang-undang yaitu (i) Undang-Undang No. 13 Tahun 2003 tentang Ketenagakerjaan; (ii) Undang-Undang No. 40 Tahun 2004 tentang Sistem Jaminan Sosial Nasional; (iii) Undang-Undang No. 24 Tahun 2011 tentang Badan Penyelenggara Jaminan Sosial;.dan (iv) Undang-Undang No 18 Tahun 2017 tentang Perlindungan Pekerja Migran Indonesia.

Perubahan-perubahan yang kami bahas antara lain mengenai penggunaan tenaga kerja asing, perjanjian kerja, perusahaan alih daya (outsourcing), waktu kerja dan cuti, pengumpahan, pemutusan hubungan kerja, dan pengenaan sanksi.

ARMA menyediakan update terkait bahasan ini dalam bahasa Inggris (di sini) dan bahasa Indonesia (di sini).

Saat ini tim kami di ARMA Law terus memantau perkembangan Omnibus Law dan peraturan pelaksananya. Hingga tanggal penerbitan ARMA Update ini, Omnibus Law belum berlaku secara sah dikarenakan belum ditandatangani oleh Presiden Indonesia. Sehingga, seluruh analisis ini didasarkan pada naskah Omnibus Law yang tersedia dalam berbagai sumber.

This client update is the property of ARMA Law and intended for providing general information and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. ARMA Law has no intention to provide a specific legal advice with regard to this client update.

October 21, 2020

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