The formation of the Omnibus Law ruled as unconstitutional

The Constitutional Court decided on 25 November 2021 that the formation of Law No.11 of 2020 on Job Creation (Omnibus Law) is unconstitutional and will need to be rectified.

The effect of this ruling is that the government and legislature will need to ‘rectify’ the Omnibus Law within two years of the court’s decision. Within this timeframe, no implementing regulations of the Omnibus Law can be issued until the revision has been made. All provisions in the law and its implementing regulations remain valid for two years or until the revision is issued (whichever is sooner). If no revision is introduced within two years, the whole of the law will be invalid and will no longer apply.

It remains to be seen how the government will ‘rectify’ the Omnibus Law. Whilst the Constitutional Court’s ruling did not address any substantive provisions in the Omnibus Law, it is also not clear whether any of its substance will be amended in the future.

We will continue monitor how this will impact businesses and we will issue an update once there is any significant development.