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View all search resultsThe business community considers the 2003 Labor Law and its derivatives to be one of the factors dragging down the country’s competitiveness, as high severance pay requirements and high wage requirements have discouraged labor-intensive, smaller enterprises from investing in the country.
Laws and regulations are needed to provide workers with strong bargaining power, and the government guarantees the freedom of workers to set up organizations or trade unions. However, overly protective labor legislation could kill the goose that lays the golden egg.
With the jobs market becoming increasingly flexible, the Manpower Ministry is exploring options to protect workers who are laid off or whose contracts are not renewed. Unemployment insurance is one of those options, according to Manpower Minister Hanif Dhakiri, another is training and certification for the jobless.
Many consider the Labor Law to be one of the factors dragging down the country’s competitiveness, as high severance pay requirements and high wage requirements have discouraged labor-intensive, smaller enterprises from investing in the country.
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