Employment and Labor Law

Changes in the Employment Regulations Regime: Temporary Employee, Outsourcing, Termination of Employment, Minimum Wage and Social Security Program

The employment sector is one of the clusters that has received the most attention since the issuance of the Omnibus Law. Following our previous newsletter [click here to read], there were uncertain matters that have not been regulated under the Omnibus Law considering those matters that will be further regulated under the government regulations. Finally, the government of Indonesia issued several regulations in the employment cluster to accommodate the implementation of particular provisions in the Omnibus Law. The Ministry of Manpower also unveiled a regulation to support the implementation of the relevant government regulation.

The implementation regulations comprise of the following:

1) Government Regulation No. 35 of 2021 on the Temporary Employment Agreement, Outsourcing, Working Hours and Breaks and Termination of Employment Relationships (“GR No. 35/2021”), which came into force on 2 February 2021;

2) Government Regulation No. 36 of 2021 on the Wages (“GR No. 36/2021”), which came into force on 2 February 2021;

3) Government Regulation No. 37 of 2021 on the Job Loss Security Program (“GR No. 37/2021”), which came into force on 2 February 2021; and

4) Ministry of Manpower Regulation No. 7 of 2021 concerning the Procedure of Participant’s Registration and Recomposition’s Implementation of Internal Contributions on the Job Loss Security Program, which came into force on 1 April 2021 (“MoM Regulation No. 7/2021”).

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