Job creation law: Violators of the employment contract can be terminated immediately. Page all

JAKARTA, KOMPAS.com – Several articles of the Employment Creation Law (Ciptaker Law) have generated controversy. One of them is the elimination of article 161 of Law No. 13 of 2003 on Manpower.

This article regulates the obligation of companies to give three warnings in order to terminate the employment relationship (PHK) to workers who fail to comply with the provisions.

Here’s the sound from Item 161:

(1) In the event that a worker / worker violates the provisions stipulated in an employment contract, company regulations or collective bargaining agreement, the employer may terminate the employment relationship, after the worker / worker in question has received the first, second and third successive warning letters. take part.

(2) The warning letters mentioned in paragraph (1) are each valid for a maximum of six months, unless otherwise stipulated in the employment contract, company regulations or collective bargaining agreement.

(3) Workers / day laborers who experience termination of employment for the reasons mentioned in paragraph (1) receive severance pay equivalent to once, the provisions of article 156 paragraph (2), cash reward for a period of one-time work, the provisions of article 156 paragraph (3) and money. substitution of rights in accordance with the provisions of article 156, paragraph 4).

Also read: Law of the law Plus Minus Omnibus Create verified job

While in the final draft of Article 154A of the Employment Creation Law, the government allows companies to lay off employees for the following 14 reasons:

(1) Termination of employment may occur for the following reasons:

to. companies carry out a merger, consolidation, acquisition or separation of companies

second. companies make efficiency

C. the business closed because the business suffered a loss

re. the company closed due to force majeure.

me. the company is in a state of deferment of debt payment obligations

F. bankrupt company

Read also: Job creation law: workers cannot file a job termination if the company loses

gram. the company commits an act that is harmful to the worker / worker

h. worker / day laborer resigns of his own free will

me. workers / day laborers are absent for 5 (five) business days or more consecutively without written information;

j. workers / day laborers violate the provisions established in labor agreements, company regulations or joint work agreements; k. workers / day laborers are detained by the authorities

l. The worker / day laborer suffers a prolonged illness or disability due to an accident at work and cannot perform his work after exceeding the 12 (twelve) month limit;

subway. workers / day laborers enter retirement age; or

north. workers / day laborers died.

(2) Other provisions relating to the procedure for termination of labor relations are regulated by government regulation.

The Job Creation Law was approved by DPR and the government in a plenary meeting in the DPR building, Senayan, Jakarta on Monday (10/5/2020).

The president of the Body of Legislation (Baleg) DPR, Supratman Andi Agtas, in his presentation in the plenary session explained that the Draft Law on Job Creation was discussed in 64 meetings from April 20 to October 3, 2020. The Project of the Employment Creation Law consists of 15 chapters and 174 articles.

“Baleg together with the government and the DPD have held 64 meetings: 2 business meetings, 56 panja meetings and 6 scam / timsin meetings that were held from Monday to Sunday, from morning to night,” Supratman said. During the recess period, we continue to hold meetings both inside and outside the building with the approval of the DPR management, ”he added.

Also read: Rejecting the Job Creation Law, KSPI: 2 million workers on national strike from October 6 to 8

The government, represented by Economy Coordinating Minister Airlangga Hartarto, said the Job Creation Bill was necessary to increase the effectiveness of the bureaucracy and increase employment.

According to him, the Job Creation Bill will provide benefits for the community and the government.

“We need to simplify, synchronize and cut regulations. For that we need a Job Creation Law that reviews various laws that make it difficult to achieve goals and create jobs. The law is also an instrument and simplifies and increases the effectiveness of the bureaucracy, ”said Airlangga.