11th Labor Consultation Room Compliance with Omnibus Law

I have been to the Phoenix Labor Consultation Office more than 10 times, and I would like to correct myself and do my best. Thank you for your support.

The Employment Creation Omnibus Act was signed by the President and promulgated by the Ministry of Justice and Human Rights. However, after it was passed by the Diet, it was amended, resulting in a significant increase in the number of pages, as well as typographical errors and mismatched reference clauses, leading to opinions questioning its legitimacy as a law. A federation of labor unions has already filed a claim that this law is unconstitutional, and I think there are many people who are worried about whether this law will actually be used. Under such circumstances, let's focus on what we need to do now.

[Identification of invalidation clauses and revised clauses]

The final version of the Job Creation Omnibus Law is already available (https://jdih.setneg.go.id/Terbaru). There are a number of statutes and provisions that have been invalidated. Check whether the invalidation affects any part of your company's current employment regulations or collective bargaining agreement. In particular, if the invalidated clause number is clearly stated, it will be automatically invalidated, so you will need to consider how to revise it. Additionally, sections where the clause number is not listed but the content is clearly stated will not be automatically invalidated, but please consider whether it is okay to leave it as is or whether it should be revised to reflect the invalidation, depending on the company's situation. Next, check which provisions have been revised and compare them with your company's employment regulations and collective bargaining agreement. Some of these can be applied immediately under this law, while others must wait for the issuance of detailed regulations such as cabinet orders or ministerial orders. First, let's take a look at how things that can be applied right away will affect you. Those who are waiting for detailed regulations are required to issue them within three months, so please prepare during that time.

[Correspondence in employment regulations/labor agreement]

First, please check how to write the employment regulations/labor agreement. If the document simply states "according to current laws and regulations" but does not specify the details of the law, no action is required. It will automatically change to the new legal content. On the other hand, if the name of the law or article number is listed, such as "According to Article XX of Act No. 13 of 2003," but the content is not clearly stated, the original provision will be valid unless the provision has been invalidated. If you want to apply the new law, you will need to revise it. Also, if the name of the law is not listed but the content has changed in this revision, revision is also required. We recommend that you consider making revisions in accordance with the revision method stipulated in your work regulations/collective agreement.

Related legislation: Law No. 11 of 2020 (commonly known as the Employment Creation Omnibus Law)