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Jakarta, CNBC Indonesia – The government will determine the amount of money that the ‘victim’ of termination of employment will receive due to the efficiency of the business or business that is losing money.
This amount is contained in the rules derived from Law 11/2020 on Job Creation, specifically the Draft Government Regulation (RPP) on Contracts for Specific Work Time, Subcontracting, Work and Rest Time and Termination of the employment relationship .
This RPP regulates the layoff mechanism, including how to ensure compliance with the rights of workers / workers who have experienced layoffs, one of which is workers ‘or workers’ compensation money from PKWT.
Apart from that, severance pay, pay-for-service period, and compensation for rights are also regulated, as quoted by CNBC Indonesia via RPP, Wednesday (3/2/2021).
The salary component used as the basis for calculating compensation money consists of salaries without subsidies or basic salaries and fixed subsidies.
In addition, there are granting of rights for termination of the employment relationship as stipulated in article 39.
“In the event of termination of employment, the employer is obliged to pay severance pay and / or a compensation for period of work, and compensation for the rights to be received”, as cited in article 39, paragraph 1) of the RPP, Wednesday (3 / 2/2021).
In article 39, paragraph 2), the severance pay is adjusted to the length of service. The value is a minimum of one month’s salary for a year of service and a maximum of 9 months’ salary for a work period of 8 years or more.
However, in article 39 subsection (3) the severance pay will be granted with eight specific provisions, among others:
1. Work period of 3 years or more, but less than 6 years, only 2 months of salary are given.
2. The work period of 6 years or more, but less than 9 years, only receives 3 months of salary.
3. Work period of 9 years or more, but less than 12 years, the severance pay is only 4 months of salary.
4. Work period of 12 years or more, but less than 15 years, only 5 months of salary.
5. The work period of 15 years, but less than 18 years, only receives 6 months of salary.
6. Work periods of 18 years or more, but less than 21 years, only receive severance pay for 7 months.
7. Working time 21 years or more and less than 24 years, with salary of 8 months only.
8. Working time 24 years or more, with a salary of 10 months.
Then, in seven specific situations, the dismissed workers are only entitled to receive half of the severance pay or 0.5 times what is provided in article 39, paragraph 2). This is regulated in articles 41 to 46 and 51.
The company can pay half of the severance pay or 0.5 times the amount of Article 39 Paragraph (2), with the following seven conditions:
1. When a company is taken over, which causes the company to change working conditions and workers are not willing to continue the employment relationship.
2. When the company performs efficiency by experiencing losses.
3. When the company closes because it has suffered losses for two consecutive years or not.
4. When the company closes due to pressure (overwhelming force).
5. When the company postpones its obligations to pay debts for losses.
6. When the company goes bankrupt.
7. When workers violate labor regulations and have been given three warning letters.
Meanwhile, the provision of payment and compensation services for the rights of dismissal victims is in accordance with the provisions of article 39, paragraph 2).
