New Research: Labour Law Reform in Indonesia
In this Mondiaal FNV publication, WageIndicator Foundation has made a comparison of the new legislation with both International Labour Standards and the previous labour legislation in Indonesia.
In October 2020, the Indonesian Parliament passed the Omnibus Law (Law No 11/2020 on Job Creation), introducing significant changes in the country’s legislative regime on employment, investment, immigration, environmental standards, business licensing and building permits.
The comparison in this publication looks at the topics of wages, overtime and working hours, outsourcing, employment termination and others. Part of the conclusion reads that ‘Reform in outsourcing practices now allows outsourcing of all activities, whether core or non-core, which can lead to precarious employment and has the potential to erode workers’ rights in the country. Similarly, the exemption of micro and small enterprises from payment of minimum wages seemingly deprives millions of workers of their right to decent wages and decent working conditions. These two areas, outsourcing and exemptions of micro and small enterprises from minimum wage payment, need to be explored further in cooperation with local organizations.’
