Jokowi denies that the job creation law eases layoffs, what are the facts?

JAKARTA, KOMPAS.com – President Joko Widodo mentioned a lot of misinformation and jokes that caused the Creation Labor Law to be rejected by the public.

One of them deals with termination of employment (PHK).

Jokowi denied that the Employment Creation Law would make it easier for companies to unilaterally lay off their employees.

“Can companies be fired unilaterally at any time? Not true. The truth is that companies cannot unilaterally fire workers,” Jokowi said in a press release from the Presidential Palace, Bogor, on Friday (10 / 09/2020)

What are the facts?

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When comparing the Employment Creation Law with Law No. 13 of 2003 on Manpower, there are a number of rules that have changed regarding layoffs.

Article 161 of the Labor Law regulates that employers can fire employees if the worker violates the provisions stipulated in the employment contract, company regulations or collective bargaining agreement.

However, layoffs can only take effect after workers receive warning letters up to three times in a row.

This article was eliminated through the Employment Creation Law.

Instead, the Employment Creation Law is added to article 154A letter j, which regulates similar matters.

Also read: Jokowi asks for permission not removed in the job creation bill, here are the facts