Workplace & Employment

OMNIBUS LAW 2020: Finding a New Equilibrium in Indonesia's Employment Law?

This is the second edition of the "Omnibus Law 2020: Overview Series", which highlights changes in the employment sector.

In Indonesia, as in many other countries, employment law is often a sensitive issue, and past governments have shied away from resolving issues surrounding employment. With the enactment of the Omnibus Law, various provisions of the current Labour Law (Law No. 13 of 2003) that are deemed to be "too restrictive" or "too difficult" are either removed entirely or updated.

The provisions that are being updated by the Omnibus Law include provisions on termination of employment, compensation for termination of employment, minimum wage, outsourcing, fixed-term employment, work permit for expatriates, and the establishment of a new social security program called the loss of employment security program.