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    HCM Assignment Week 6 Febri and Bayu Putra

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    Bayu Putra Kusuma
    The document discusses opinions on the Omnibus Law on Job Creation in Indonesia and the previous Labor Law. There are concerns that the Omnibus Law may decrease job security and workers' rights by shifting responsibilities to outsourcing companies. However, it also aims to streamline regulations to attract investment and increase flexibility for employers. The Labor Law provided protections but was criticized for a lack of enforcement and exemptions for small businesses. It established some provisions for wages, leave, and termination but was ambiguous in some areas.

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    HCM Assignment Week 6 Febri and Bayu Putra

    Uploaded by

    Bayu Putra Kusuma
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    The document discusses opinions on the Omnibus Law on Job Creation in Indonesia and the previous Labor Law. There are concerns that the Omnibus Law may decrease job security and workers' rights by shifting responsibilities to outsourcing companies. However, it also aims to streamline regulations to attract investment and increase flexibility for employers. The Labor Law provided protections but was criticized for a lack of enforcement and exemptions for small businesses. It established some provisions for wages, leave, and termination but was ambiguous in some areas.

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    HCM ASSIGNMENT WEEK 6 FEBRI AND BAYU PUTRA (1)

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    The document discusses opinions on the Omnibus Law on Job Creation in Indonesia and the previous Labor Law. There are concerns that the Omnibus Law may decrease job security and workers' rights by shifting responsibilities to outsourcing companies. However, it also aims to streamline regulations to attract investment and increase flexibility for employers. The Labor Law provided protections but was criticized for a lack of enforcement and exemptions for small businesses. It established some provisions for wages, leave, and termination but was ambiguous in some areas.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    13 views2 pages

    HCM Assignment Week 6 Febri and Bayu Putra

    Uploaded by

    Bayu Putra Kusuma
    The document discusses opinions on the Omnibus Law on Job Creation in Indonesia and the previous Labor Law. There are concerns that the Omnibus Law may decrease job security and workers' rights by shifting responsibilities to outsourcing companies. However, it also aims to streamline regulations to attract investment and increase flexibility for employers. The Labor Law provided protections but was criticized for a lack of enforcement and exemptions for small businesses. It established some provisions for wages, leave, and termination but was ambiguous in some areas.

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    of 2

    ASSIGNMENT HCM

    OPINION ON THE OMNIBUS LAW AND THE PREVIOUS LAW

    BY : M febri setiawan ( 14202300062 )


    Bayu Saputra Kusuma ( 14202300126 )

    Negative Opinion - Omnibus Law:

    The Omnibus Law on Job Creation in Indonesia has faced criticism for its potential negative
    impact on workers' rights and job security. One major concern is the shift in responsibility for
    the protection of outsourced workers, wages, and employment requirements to the
    outsourcing company, relieving employers of their liability [3]. This change may lead to a
    decrease in job security and the rights of outsourced workers, potentially exacerbating
    income inequality and exploitation.

    Furthermore, the removal of certain provisions related to working hours, rest time, and
    leave raises concerns about work-life balance and employee well-being [4]. The elimination
    of the provision for two days off for five working days and the lack of a mandate for long
    leave after six years of consecutive work may negatively impact the physical and mental
    health of workers.

    Positive Opinion - Omnibus Law:

    The Omnibus Law on Job Creation in Indonesia presents potential benefits for the country's
    economy. The law aims to streamline and simplify the regulatory framework, making it more
    conducive for businesses and investment [1]. This can attract both domestic and foreign
    investment, leading to increased job opportunities and economic growth.

    Additionally, the law introduces changes to employment contracts, such as the renewal of
    fixed-term contracts, providing more flexibility for employers in managing their workforce
    [1]. This flexibility can contribute to increased job creation and allow businesses to adapt to
    changing market conditions more effectively.

    Citations:
    [1] Sectors 47. Law No. 25 of 2007 on Investment; Starting from Article 76. Page 527
    onwards.
    [3] Industrial relation dispute mechanism. KPMG Confidential.
    [4] Changes in outsourcing and employment rights. KPMG Confidential.

    Negative Opinion - Labor Law:


    The Labor Law in Indonesia, while aiming to protect workers' rights, has faced criticism for
    its enforcement and effectiveness. One major concern is the lack of effective enforcement
    mechanisms, which can lead to widespread violations of labor rights without proper
    consequences for employers [1]. This undermines the intended protections and leaves
    workers vulnerable to exploitation and unfair treatment.

    Additionally, the exemption of Micro and Small Businesses from minimum wage provisions
    raises concerns about income inequality and the potential for these businesses to exploit
    their employees [2]. Without clear regulations and enforcement, there is a risk that these
    businesses may not provide adequate wages and benefits to their workers, further
    exacerbating income disparities.

    Furthermore, the lack of clear regulations regarding long leave and the reliance on
    employment agreements, company regulations, or collective employment agreements for its
    implementation can lead to inconsistencies and unequal treatment among workers [3]. This
    ambiguity leaves room for employers to manipulate leave entitlements and potentially deny
    workers their rightful time off.

    Positive Opinion – Labor law

    The Labor Law in Indonesia provides essential protection for workers' rights and ensures fair
    treatment in the workplace. It establishes minimum wage provisions, which help to
    safeguard workers from exploitation and ensure they receive fair compensation for their
    labor [2]. This provision helps to promote income equality and improve the standard of
    living for workers.

    Additionally, the Labor Law includes provisions for leave entitlements, such as annual leave
    and maternity leave, which contribute to work-life balance and the well-being of employees
    [4]. These provisions recognize the importance of rest and time off for workers' physical and
    mental health.

    Furthermore, the Labor Law sets regulations for the termination of employment, protecting
    workers from arbitrary dismissal and providing them with legal recourse in case of unfair
    treatment [1]. This helps to ensure job security and stability for workers.

    Citations:
    [1] Labor Law Number 13 of 2003.
    [2] Minimum wage provisions. KPMG Confidential.
    [3] Ambiguity in long leave regulations. KPMG Confidential.
    [4] Leave entitlements. KPMG Confidential.

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