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Observers say the omnibus law provides two additional benefits for workers

ILLUSTRATION. Crowds from the KSPI rallied at Jalan Medan Merdeka Barat, Jakarta, Monday (12/10/2020). The action was to reject the passage of the Job Creation Law.

Reporter: Abdul Basith Bardan | Editor: Noverius Laoli

KONTAN.CO.ID – JAKARTA. Labor observer, Payaman Simanjuntak, said the Job Creation Act or the so-called omnibus law provides two additional benefits for workers.

This was conveyed by Payaman when compared to the previous Law Number 13 of 2003 concerning Manpower. The two additions are related to the rules of the Fixed Time Work Agreement (PKWT) and social security.

“The additional two benefits, of course, will increase the welfare of workers,” said Payaman when contacted by Kontan.co.id, Thursday (15/10).

Payaman said that the PKWT rules in the World Sweep Law provide protection for workers. This is in accordance with the decision of the Constitutional Court (MK).

Also Read: This is Apindo’s response to tax reform in the Job Creation Law

“If they terminate their employment (PHK), they receive severance pay,” explained Payaman.

There is also a Job Loss Guarantee (JKP) which is an additional benefit in the Employment Social Security Administration (BP Jamsostek). Employers and workers do not need to increase contributions for that.

Workers who are laid off will get JKP benefits. It is cash, training programs and job vacancies to choose from.

Based on the Job Creation Law, these benefits are obtained for a maximum of 6 months apart from severance pay. Even so if you look at the amount of severance pay in the Job Creation Law even though there is an additional JKP, it is lower than the previous Law 13/2003.

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