Manpower is a substantial part of a developing country like Indonesia. The labor law in Indonesia covers various issues, specifically related to workers and their rights. The law includes the policy for minimum wage, work agreement, workers’ leave, health and safety insurance, non-discrimination in the workplace, strike, foreign workers, overtime, and other issues. Three of the main legislation that is used as the protection for the employees is Law No. 13 of 2003 on Manpower (Labor Law), Act 21 of 2001 about Law of Union Worker, and Act 2 of 2004 about Industrial Relation Disputes.
Law No. 13 of 2003 on Manpower which became the basis of employment in Indonesia has combined public and civil law. This resulted in a unique law because it is outside the classification of traditional law. The International Covenant on Civil and Political Rights (ICCPR) of United Nations and conventions by International Labor Organization are also played an essential role in the development of the labor law in Indonesia. Beside the international laws that deal with labor and employment, some of the most critical sources of labor law in Indonesia are:
a) International agreements which have been ratified by the Indonesian government
b) The 1945 Constitution of Republic Indonesia
c) Legislations for specific cases
d) Ministry decrees
The manpower law is mainly based on some articles on the 1945 Constitution, specifically Article 27 (2) which states, “Every citizen shall have the right to work and to earn a humane livelihood.” The other articles on the Constitution which became the basis of the labor law are Article 5 (1), Article 20 (2), Article 28, and Article 33 (1).
In the past, labor law in Indonesia wasn’t needed due to most of the citizen worked in the agricultural field. But the labor market in Indonesia gradually changed into industrial and trading which opened more opportunity for employment. For this exact reason, the law is needed to act as a source and basis for both employee and employer in understanding their rights and privileges. This law is needed more when there is a dispute to make sure both parties reach an agreement equitably.
In 2017, the government updated some of the articles in the 2003 law, which to some degree made the rights of the employees clearer than before. One of the most underlined revisions is Article 153 which previously forbade employees within the same company to get married. The Constitutional Court believed that the previous article is against the constitutional rights of the employees according to The 1945 Constitution. Another point is regarding the scale and structure of the wages. Structure of wages is defined as the level of wages from the highest to the lowest, while the definition of the scale of the wages is more about the nominal regarding the level or rank of the jobs in the company.
Even though the law about manpower is evident and specified, most employees pay little attention to it, which resulted in not understanding fully about their rights and privileges. This ignorance is sometimes being taken advantage by the company to reduce the cost of production.
BP LAWYERS CAN HELP YOU: WE CAN SSIST YOU IN PROVIDING THE BEST SOLUTION TO THE LEGAL PROGRAM OF YOUR BUSINESS OR YOUR COMPANY’S. YOU CAN CONTACT US VIA ASK@BPLAWYERS.CO.ID OR +62 821 1000 4741
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