JakartaPost-Nov 1
The Constitutional Court has ordered lawmakers to draft a new manpower law in a ruling that concludes a review of the omnibus 2023 Job Creation Law requested by labor groups. In its decision announced on Thursday evening, the court struck down 21 articles from the jobs law, including those related to contract terms and layoff procedures, requiring significant revisions to bring the legal norms into line with the Constitution. The government and the House of Representatives have vowed to comply with the ruling but noted that working out the specific next steps required more discussions. Several petitions filed against the omnibus law by unions and the Labor Party focused on provisions in the manpower cluster within the 2023 law, including the hiring of foreign workers, contract work (PKWT) agreements, outsourcing, layoff procedures, as well as salaries and benefits. The regulations include how long people can be employed on limited contracts rather than as permanent staff, which the Court has capped at five years including extensions, rather than leaving it up to employment agreements. The court also nullified the rule stipulating a single day off per week, mandating that the law provide an option for a two-day weekly rest period. A chapter allowing foreign workers in specific positions has been amended to prioritize the hiring of locals. The ruling also clarifies dismissal procedures, stipulating that layoffs in contested cases may only proceed after a verdict from an industrial relations court. The court noted that, while the Job Creation Law was supposed to replace the 2003 Manpower Law, it failed to address some of the old law’s substance. Read more at:
