Mahfud calls out many hoaxes regarding job creation law

JAKARTA, KOMPAS.com – The Coordinating Minister for Political, Legal and Security Affairs (Menko Polhukam) Mahfud MD said that false or misleading information is spread in the community regarding the Employment Creation Act (UU).

According to Mahfud, the deception was about the explanation of the articles contained in the Employment Creation Law.

“For example, there is no severance pay, that is not true, there is severance pay. It is said that there is no menstrual leave, maternity leave and so on, here (the Employment Creation Law) exists,” Mahfud said in press conference broadcast by Kompas TV, on Thursday (10/8/2020).

“It is said to facilitate layoffs, that’s not true. In fact, layoffs must be paid if they have not been separated,” he continued.

Also read: See the calculation of the last severance pay in the Employment Creation Law

He stated that in the Employment Creation Law there are rules on the existence of a guarantee when an employee loses his job.

However, according to Mahfud, there are many hoaxes that skew the information about job loss guarantees in the Job Creation Act.

Not only that, he also questioned the notion that there was an effort to commercialize education in the rules of the broomstick.

He claimed that the regulations on the education sector in the Employment Creation Law had been repealed after receiving public comment.

Also read: Ministry of Transportation drew up 5 regulations derived from the work creation law

“There, the world of education is only regulated in an article that facilitates the education of non-profit institutions, but it was even reversed in the news,” he said.

Demonstrations against the Job Creation Law were held in several regions. Those who demonstrated were workers, students, students and other elements of society.

Also read: Commission X is concerned that education will be commercialized after the job creation law is regulated

The protesters demanded the repeal of the Employment Creation Law that the DPR just approved in plenary session on Monday (05/10/2020).

Severance pay

As Mahfud said, severance pay is not eliminated in the Employment Creation Law. However, the government and the DPR agreed to change the calculation of the Manpower Law.

In the Employment Creation Law, the maximum amount of compensation that workers receive is 25 times the salary consisting of 19 times the monthly salary of the workers and 6 times the job loss guarantee (JKP).

Meanwhile, in the Labor Law No. 13/2003, the maximum amount of severance pay that workers can receive is 32 times their salary.

Also read: Termination for layoffs is only 25 times the salary in the Employment Creation Law, see the calculation