Employment
Manpower law rewritten by Job Creation, then partly re-legislated
The Manpower Law of 2003 was substantially amended by the 2020 Job Creation Law, which the Constitutional Court declared conditionally unconstitutional in 2021 for procedural defects. The government responded with a Government Regulation in Lieu of Law in 2022, enacted as Law No. 6 of 2023. The result is that employment terms changed materially and the legal basis was contested throughout.
Governing law
- Law No. 13 of 2003 on Manpower — As amended by the Job Creation legislation.
- Law No. 6 of 2023 on Job Creation — Enacted the 2022 Perppu after the Constitutional Court ruling.
In practice
Severance entitlements on termination are calculated by length of service under the amended formula. Fixed-term contracts are capped at five years total under the post-Job Creation rules. Outsourcing restrictions were loosened, with implementing regulation defining permitted activities. Minimum wages are set provincially and by regency, using a formula prescribed by government regulation. Pre-2020 severance calculations no longer apply — but check whether the applicable collective agreement preserved the old formula. Termination generally requires either employee agreement or an Industrial Relations Court decision; unilateral dismissal is not effective by itself.