Definition of Omnibus Law:
Omnibus law is a method to create new regulation or constitution consisting of many subjects or subject matter for specific purposes in order to deviate from a regulatory norm.
Omnibus Law (itself) is NOT a Legal Product but Omnibus Law reflects an integration, codification of regulations which ultimate goal is to make the application of these regulations effective.
Conventional changes by amending the law one by one as it has been done is considered ineffective and inefficient, and need a long time. Therefore, the establishment of a Job Creation policy must be carried out through the Omnibus Law Legislation technique.
The Omnibus Law combines 80 laws and 1,201 articles related to employment combining 3 laws and 57 articles governing minimum wages, outsourcing, foreign labor, severance / termination, sweetener, and working hours.
The Work Copyright Bill has 5 parts and consists of 74 articles, i.e.
1. First part: General (1 Article)
2. Second part: Employment (UU No. 13 of 2003) consists of 68 articles governing foreign worker, minimum wages, Outsourcing, severance / termination, rest and leave, Definite Employment Working Agreement working hours
3. Third part: Social Security UU No. 40 of 2004 (2 articles), the latest one has job loss guarantee
4. Fourth part: Social Security Administrator UU No. 24 of 2011 (2 articles) which is the latest article of job loss guarantee institution
5. Fifth part: Other Appreciation (1 article), new article on adding new norms for workers’ welfare
The differences between the old regulation and the Omnibus Law bill :
1. The employment relationship between the outsourcing company and the workers / laborers it employs is based on the Definite-Period Employment Working Agreement (Contract Employment status) or an Indefinite-period Employment Working Agreement (Permanent Employment status)
2. Wage and welfare protection, work requirements and disputes that arise are the responsibility of the outsourcing company
3. Outsourcing companies must be in the form of legal entities and must meet business licenses
4. In the context of outsourcing in this bill only regulates employment relations while those related to outsourcing business are regulated in the Civil Code (KUHP/Business Law)
Potential implications :
1. Outsourcing business will increase and expand employment
2. Many workers will have Contract employment status.
3. Implementation of work to the client through a chartering agreement (BPO) will be subject to Civil Code Provisions (KUHP) or related sector legislation.
