Indonesia’s Constitutional Court last week ruled that changes must be made to some labour rules, including ordering the establishment of sectoral minimum wages, in response to a petition by several workers unions, reports Reuters. Unions petitioned the court about a controversial job creation law that went against workers’ rights to decent conditions. The court accepted the petition partially and rejected several requests, including an increase in severance benefits.

The law was a key piece of legislation from former President Joko Widodo, who left office in early October. It was intended to streamline business regulations, cut red tape and improve the investment climate in Southeast Asia’s largest economy. However, its passage in 2020 triggered protests by students, workers, and activists who argued that it eroded labour and environmental protections.

As part of a live-streamed 20-point ruling, the court ordered local leaders to set sectoral minimum wages, as sought by unions, but rejected a request to change the formula to set the annual rise in minimum wages.

The court decided that if a layoff is disputed, an individual would still be considered an employee if their case has been brought to an industrial court, reversing a passage of the law that made any layoff immediately enforceable. It also ordered the manpower ministry to specify what jobs can be outsourced to reduce potential conflict between employers and employees.

The decision was in response to unions’ complaints that there were no limitations on the jobs that could be outsourced. The court also ordered legislators to issue a new, comprehensive manpower law within two years, putting together all existing rules scattered across various legislation and ensuring they reflected the changes ordered in the ruling.