3 New Overtime Rules in the Omnibus Law on Job Creation

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work

The Omnibus Law has just been enacted. One of the chapters is regulating employment rules, including the rule for workers who have to work overtime.

Judging on a copy of Law No. 11 of 2020 regarding Work Creation, the rules regarding overtime working hours are regulated in article 81.

Article 81 revises article 78 in Law 13 of 2003 concerning employment. Here are 3 important facts:

1. Maximum Overtime Time 4 Hours a Day

In the revision of Article 78 of this Law, it is stated that there are conditions that must be fulfilled if workers have to work overtime. In paragraph 1 point A of the Omnibus Law on Job Creation, it is stated that overtime must be based on an agreement between the worker and the company.

The overtime time is also limited, a maximum of 4 hours a day. Meanwhile, in a week overtime is only allowed a maximum of 18 hours.

2. Companies are required to pay compensation money

Paragraph 2 explains that the company is obliged to pay overtime compensation if a worker is forced to work beyond normal working hours.

“Entrepreneurs who employ workers/laborers beyond the working time as referred to paragraph (1) are required to pay overtime wages,” Article 78 paragraph 2 states in Law 11 of 2020.

Then paragraph 3 of article 78 states that the provisions for working time or overtime do not apply to several business sectors.

“The provisions for overtime work as referred to paragraph (1) letter B do not apply to certain business sectors or jobs,” paragraph 3 of article 78 states.

Meanwhile, further provisions regarding certain business sectors as well as overtime pay will be regulated in a government regulation.

3. Normal Working Time Rules

The working hours are regulated in an amendment of article 77. In paragraph 2 of article 77, it is stated that companies can choose two options for working hours. Both options state that the maximum working hours in a week is 40 hours.

The first option of working hours is set for 6 working days per week, per day a maximum of 7 hours. Then the second option mentions working hours per day is a maximum of 8 hours with a working time of 5 days per week.