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. This had led to the coexistence of two manpower-related laws that were not “in an intact shape”. 
This comes after the court fully or partially granted more than a dozen petitions concerning both laws. The court stated that this had created the possibility of inconsistencies between the two laws and made it difficult for the general public, particularly workers, to understand which regulations were currently applicable. 

“If those issues are not immediately resolved, manpower governance and legislation can easily fall into disrepair and be trapped in the threat of legal uncertainty and prolonged injustice,” said Constitutional Court justice Enny Nurbaningsih while reading out the ruling.

The court therefore ordered lawmakers to draft a new manpower law within two years, incorporating the provisions of the 2003 Manpower Law and the 2023 Job Creation Law, relevant Constitutional Court rulings and input from labor unions. 
In response to the ruling, Labor Party chairman Said Iqbal urged President Prabowo Subianto to immediately draft a government regulation in lieu of law (Perppu) that includes provisions based on the court’s decision and declare the manpower cluster in the 2023 Job Creation Law void.

He also called on the government to comply with the order to create a new manpower law. Said further demanded the government halt ongoing discussions on minimum wage hikes based on Government Regulation No. 51/2023 as this was based on articles in the Job Creation Law. 

He argued that, since these chapters had been deemed unconstitutional, any implementing regulations should be considered void.
 “We demand [the government] sit together with us [to] discuss new provisions for wage hikes. There should be no more upper or lower limits. 
A certain index between 0.1 and 0.3 [to be used in the calculation] is invalid. We need to discuss it again together,” Said stated late on Thursday. Supratman Andi Agtas, Law Minister in Prabowo’s new Red and White Cabinet, stated that the government would comply with the court’s ruling as it was final and binding. 
He added that he would coordinate with Economic Coordinating Minister Airlangga Hartarto and the House to determine the next steps. 
“Even before the ruling, we had considered revising the Manpower Law. The ruling provides momentum for us to do the revision,” he said on Friday, as quoted by Kompas. According to Supratman, the revision is necessary because of the introduction of a new Migrant Workers Protection Agency under Prabowo’s presidency. Daniel Johan, a member of the House’s Legislation Body (Baleg), also stated that lawmakers would comply with the ruling.
 “However, we need to examine the details of the ruling and discuss them with other factions and [within] Baleg,” he told The Jakarta Post on Friday. 

The Job Creation Law was enacted in 2020 by then-president Joko “Jokowi” Widodo to cement rules on investment and jobs in Indonesia. The omnibus law, which revises more than 70 other laws, has been praised by foreign investors for streamlining business rules but criticized by labor and environmental groups for being overly pro-business. 

In 2021, the Constitutional Court ruled that the passage of the law was flawed due to inadequate public consultation and ordered a renewed legislative debate within two years. The following year, Jokowi resuscitated the law by signing a Perppu, which the House passed into law in 2023, effectively making it permanent legislation.

This article was published in thejakartapost.com with the title "". Click to read: https://www.thejakartapost.com/business/2024/11/01/court-orders-lawmaker....

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