Ciptaker Gap Omnibus Law Employers ‘escape’ severance pay



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Jakarta, CNN Indonesia –

Legal plan (invoice) all the law Create job (Ciptaker) was approved in the plenary session of the DPR and the government on Monday (5/10).

However, several articles of the regulation open opportunities for employers or companies not to pay severance pay. This is reflected in several articles of the Ciptaker bill that abolished several articles of Law 13 of 2003 on labor.

The president of the Indonesian Workers’ Trade Unions Association (Aspect), Mirah Sumirat, said that the removal of a number of articles in the Manpower Law that regulate the provision of severance pay appeared to legitimize the loophole for employers to Skip compensation for dismissal of workers or day laborers.


“Automatically it is no longer an opportunity, employers have legal powers by law. This means that employers can easily eliminate the severance pay, there is a possibility of possible loopholes and they can be made by employers,” he told CNNIndonesia.com.

In general, he sees the Ciptaker bill as a setback for the well-being of workers. According to him, the welfare of workers or day laborers should be guaranteed by the State, but the fact is quite the opposite. In fact, the rules on severance pay were abolished.

On the other hand, he said that the discussion of the Ciptaker bill at the plenary level seemed rushed amid the Covid-19 pandemic. In fact, all countries focus on managing the pandemic rather than discussing labor regulations.

“If this sounds rushed, there is also no urgency, now that the plenary session is accelerating it is a big question, why rush when there is no urgency,” he added.

For information, the Ciptaker bill removes at least 5 articles related to the provision of severance pay.

First, Section 51 of the Ciptaker Bill eliminates the provisions of Section 162 of the Labor Law. The deleted article contains the rules on the reimbursement of severance pay for workers who resign.

Paragraph 1 of article 162 of the Labor Law establishes that workers or day laborers who resign of their own free will, will receive compensation in accordance with the provisions of paragraph 4 of article 156 of the Labor Law. .

However, the resigning worker or day laborer must comply with the requirements, including submitting a written request for resignation no later than 30 days before the start date of the resignation.

Then, the resignation of workers who are not bound by official ties and continue to fulfill their obligations until the start date of the resignation.

Second, Article 52 of the Ciptaker Law eliminates article 163 of the Labor Law relative to the provision of severance payments, severance pay and compensation money in case of change of status, merger, consolidation or change of ownership of the company .

Article 163 paragraph 1 establishes that if a worker or day laborer does not wish to continue the employment relationship after the corporate action, the worker or laborer has the right to severance pay, retirement and compensation for rights in accordance with the provisions of article 156 paragraph 4 of the Labor Law.

Also, if the employer is unwilling to accept workers or day laborers into their business after the corporate action, the worker or worker is still entitled to severance pay, pay-for-service period, and rights compensation.

[Gambas:Video CNN]

Third, Article 53 of the Ciptaker Law also eliminates article 164 of the Labor Law that regulates the provision of compensation if the company experiences a continuous loss for 2 years or a situation of force (Force Majeure).

For your information, Article 164 of the Manpower Law states that employers can terminate their employment (PHK) because the company is closed, which is because the company has suffered continuous losses for 2 years or Force Majeure.

In addition, workers or day laborers who experience dismissal are entitled to severance pay, period of service remuneration and compensation for rights in accordance with the provisions of article 156, paragraph 4, of the Manpower Law.

The same also applies if a company makes layoffs because the company is making efficiency, not because it has suffered losses for 2 consecutive years or Force Majeure. Due to this condition, workers or day laborers are entitled to severance pay, payment for service and payment of compensation.

Room, Article 54 of the Ciptaker Bill also removes Article 165 of the Labor Law regarding the provision of severance pay if a company goes bankrupt.

In detail in article 165 of the Manpower Law, it is established that employers can make layoffs because the company is bankrupt. However, laid off workers or day laborers are entitled to severance pay, period of service pay, and compensation for rights.

Fifth, Article 55 of the Ciptaker Law also eliminates article 166 of the Labor Law regarding severance pay when a worker dies. Article 166 of the Labor Law establishes that if the worker or day laborer dies, the heirs have the right to receive an amount of money consisting of severance pay, payment for period of service and compensation for rights.

CNNIndonesia.com has asked the secretary of the Ministry of Economic Affairs Coordination, Susiwijono, and the staff of the Ministry of Economic Affairs Coordination, Legal Affairs and Security of the Ministry of Economic Affairs Coordination, Ellen Setiadi, to abolish these articles. However, the interested party has not responded.

[Gambas:Video CNN]

(ulf / one)



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