Highlighting the Lawsuit on the Job Creation Law: The Formation of a New Labor Law

Kapanlagi.com - The Constitutional Court (MK) has just taken a bold step that will change the landscape of labor law in Indonesia! On Thursday, October 31, 2024, the MK issued a monumental decision regarding Law Number 6 of 2023 on Job Creation.

In its ruling, part of the judicial review petition submitted by the Labor Party and several labor union federations was granted, providing new hope for workers across the country.

This decision did not come easily; there was a fierce struggle from labor groups who filed the lawsuit as a form of protest against the injustices enshrined in the norms of the Job Creation Law.

Several crucial points in the MK's ruling bring fresh air by improving regulations related to employment agreements, outsourcing systems, and other workers' rights.

The impact of this decision is far greater than just a revision of regulations; the MK has transformed the employment relationship mechanism in Indonesia to be fairer and more in favor of workers' interests. So, curious about the important points of the lawsuit? Stay tuned for more details!

1. Separation of the Labor Law from the Job Creation Law

The Constitutional Court (MK) has issued an important instruction: The Labor Law must be drafted separately from the Job Creation Law. This step is taken to ensure that labor norms are clearer and not confusing.

MK Judge, Enny Nurbaningsih, emphasized, "By regulating it in a separate law, the Labor Law will be easier to understand." Not only that, but MK also provided a two-year deadline for the House of Representatives and the government to complete the draft of the new Labor Law, with an emphasis on the importance of active participation from labor unions to ensure that workers' rights are well accommodated in the substance of the law.

2. Regulation on Maximum Duration of Work Contracts of Five Years

The Constitutional Court (MK) has taken a bold step by approving a time limit for Fixed-Term Employment Agreements (PKWT), stating that work contracts must not exceed five years, including extensions.

This step is taken to protect workers from injustices that often occur due to a weak bargaining position. The Chief Justice of MK, Suhartoyo, emphasized that this regulation aims to provide clarity in employment relationships, so that workers' rights can be better protected.

3. Limits for Outsourcing Work

The Constitutional Court (MK) has reaffirmed the limits on the use of outsourced labor, stating that jobs that can be outsourced only include non-core sectors such as cleaning and security services.

This step is taken to protect workers' rights from detrimental and ambiguous outsourcing practices. With this decision, regulations for outsourced workers are further strengthened, providing clearer rules and reducing the potential for legal disputes, thus creating a fairer and safer work environment for all.

4. Changes to Wage Regulations

The Constitutional Court (MK) has revived the role of the wage council that was previously abolished in the Job Creation Law, giving new life to wage policies at the regional level.

By involving labor union elements in decision-making, this council is expected to create justice and welfare for workers. Moreover, the sectoral minimum wage (UMS) that was previously abolished has now been reinstated, ensuring that workers in specific sectors continue to receive adequate and proper protection.

5. The Termination Process Must Go Through a Final Decision

The Constitutional Court (MK) has asserted that termination of employment (PHK) cannot be done arbitrarily, but must go through a bipartite negotiation process and wait for a final decision from the industrial relations dispute resolution agency.

This step is taken to protect workers' rights from unilateral terminations that often harm them. "With this regulation, we hope that greater justice can be realized for workers when facing termination issues," said Enny Nurbaningsih in her legal considerations.

(kpl/rmt)