Difference of dismissal regulations in the Labor Law and the Omnibus Law on Job Creation. All page

KOMPAS.com – Omnibus Law The Law Plan (RUU) Create Work was approved by the DPR RI in plenary session, on Monday (05/10/2020).

The public highlights many parts in the general law of the Job Creation Act, one of which is the question of termination of employment (PHK) of workers or workers.

The reason is that many are different from Law No. 13 of 2003 on Manpower and are considered harmful to workers.

According to Law Number 13 of 2003, layoffs are the termination of an employment relationship due to certain things that result in the termination of rights and obligations between workers and employers.

Also read: Ratified, these are several points of the Omnibus Law of the Employment Creation Law that are gaining prominence

There are different rules between Law Number 13 of 2003 and the Draft Law on Job Creation all the law. How are the details?

Dismissal terms

UU Ketenagakerjaan

In Article 163 of Law Number 13 Year 2020, employers can fire workers / workers in case of a change of status, merger, consolidation or change in ownership of the company and workers are not willing to continue the relationships labor.

Layoffs can also be made if the company undergoes a change of status, mergers or mergers, and the employer is unwilling to accept workers into the company.

Furthermore, layoffs can be carried out because the company has closed as a result of experiencing losses as evidenced by the financial statements for the last two years that have been audited by a public accountant or due to forceful circumstances.

Entrepreneurs can layoffs because the company is making efficiency and the company is bankrupt.

For each termination of employment for the above reasons, each worker is entitled to severance pay, payment for service and payment of compensation in accordance with their respective provisions in the Law.

Employers can also lay off employees in the criminal matters process.

In the event that a worker violates the provisions stipulated in the employment contract, company regulations or the collective bargaining agreement, the employer can fire the employee, after the worker has received warning letters up to three times in a row .

Employers can fire workers who are entering retirement age. Also, layoffs can be made if the worker resigns.

Also read: A series of facts about the Plenary of Ratification of the Omnibus Law of the Employment Creation Law, from Interruptions to Exits

Job creation law

Meanwhile, under the Copyright Act, employers can fire their jobs for the following reasons:

1. Companies carry out merger, consolidation, acquisition or separation of companies
2. The company is making efficiency
3. The company closed because of this the company incurred a loss
4. The company closed due to circumstances obligateForce Majeure)
5. The company is in a state of suspension of obligations debt payments
6. Bankrupt company
7. The company is doing something that is harmful. workers
8. The worker resigns on a whim alone
9. Workers are absent
10. Workers violate the provisions established in labor agreements, regulations company or collective bargaining agreement
11. Employees are detained by the authorities
12. Workers experience prolonged illness or disabilities due to work-related accidents and cannot doing his job after going overboard 12 months
13. Workers enter retirement age
14. The worker died

The company remains obliged to pay severance pay and / or severance pay and severance pay that it should have received.

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

Severance pay

UU Ketenagakerjaan

In article 156 of Law No. 13 of 2003 on Manpower, compensation for dismissal or severance pay for years of service and compensation for rights that must be received are regulated by employers.

The compensation money mentioned includes various things like.

1. Annual vacations that have not been taken and have not come down
2. Return the costs or fees of the workers / day laborers and their families to the place where the workers / day laborers are accepted to work
3. Compensation for housing, as well as medicines and care is set at 15 percent of severance pay and / or payment for service for those who meet the requirements
4. Other matters stipulated in labor agreements, company regulations or collective labor agreements.

Under the Labor Law, the maximum severance pay that a laid off worker can receive can be up to 32 times the salary.

Also read: In addition to job creation, this is a list of controversial laws passed during the Jokowi administration

Job creation law

While on the job creation invoice, there are some changes.

Article 156 point 2 of Law 13/2003 establishes that the calculation of compensation for dismissal is given “at least” in accordance with the existing detailed provisions.

Meanwhile, in Article 156 of the Draft Law for the Creation of Employment, severance pay is granted “as a maximum” based on the same details as Law Number 13 of 2003.

The difference in the correct compensation money that workers must receive in the Job Creation Act is different from the Manpower Act.

The compensation money to be received includes:

1. Annual vacations that have not been taken and have not come down
2. Return the costs or fees of the workers / day laborers and their families to the place where the workers are accepted to work
3. Other matters stipulated in labor agreements, company regulations or collective labor agreements.

In this Employment Creation Law, the article relating to the additional compensation that workers receive if the company performs efficiency is eliminated.

Meanwhile, the maximum amount of severance pay for workers affected by layoffs is reduced to 25 times their salary. It consists of 19 times the monthly salary and 6 times the Job Loss Guarantee (JKP).

Also read: The fate of employees if the Omnibus law creates certified work …