OMNIBUS LAW 2020: A New Age in Employment: Part 1

As discussed in our initial client update, the Omnibus Law (Law No. 11 of 2020) gave the employment sector a significant overhaul. But the large-scale change also created gaps. Now, the government seeks to fill in these gaps by enacting four implementing regulations for this sector. These regulations are:

1. Government Regulation No. 35 of 2021 on Fixed-Term Employment Agreement, Outsourcing, Working Hours and Time-off, and Termination of Employment (“Regulation 35“);
2. Government Regulation No. 34 of 2021 on Manpower Utilisation;
3. Government Regulation No. 36 of 2021 on Wages; and
4. Government Regulation No. 37 of 2021 on the Administration of Loss of Employment Security Program.

Our focus in this alert will be on Regulation 35, which addresses areas of the Labour Law (Law No. 13 of 2003) that required further clarification after the Omnibus Law’s issuance. These areas are fixed-term employment agreement, termination of employment, termination payment, and outsourcing.