TEMPO.CO, Jakarta - The Confederation of Indonesian Trade Unions (KSPI) said the government’s omnibus job creation bill (RUU cipta kerja) will give way for corporations to issue a limitless duration contract of employment and avoid permanent employment.
The union said the omnibus job creation bill will effectively erase Article No.59/2003 on employment that oversees the specific work duration agreement that limits an employer to employ a worker under a contract status for two years and an additional maximum one-year extension.
KSPI spokesman Kahar S. Cahyono said the dropped Article 59 will effectively enable a worker to be employed under contract status without a time limit and effectively eliminate the sense of job security for employees.
“This can potentially cause a worker to be employed under a contract for life,” said Kahat in a written statement on Friday, February 14.
Kahar argues that corporations will tend to employ people under a contract work agreement and avoid offering permanent employment to its workers as he said; “Corporations would no longer need to think about severance pay that is only exclusive to permanent employees.”