The Constitutional Court (MK), in October 2024 granted a partial judicial review of Law Number 6 of 2023, which relates to Government Regulation in Lieu of Law Number 2 of 2022, known as the Job Creation Law. This decision, number 168/PUU-XXI/2023, addresses several key points, including:
- Regulations on foreign workers (TKA)
- Specific time work agreements (PKWT)
- Outsourcing workers
- Leave rights
- Wages
- Termination of employment (PHK)
- Severance pay, compensation, and long service awards
In addition, the Constitutional Court (MK) urged the House of Representatives (DPR) and the government to draft a new Labor Law that can better balance the protection of workers’ rights with the demands of the business sector. It is essential for all stakeholders, including workers and employers, to actively oversee the implementation of these rulings to ensure fairness and proper application in practice.
Stay informed as these changes unfold!
Vinay Ahuja
Partner, Managing Director, Indonesia & Singapore | Head of Regional Banking and Finance
Indonesia, Singapore, Thailand
Vinay is a seasoned Partner and Group Leader of the Regional Banking & Finance Practice Group, with expertise in fintech and technology.
