In the end of 2020, Omnibus Law has been ratified by the President of the Republic of Indonesia, and followedby the issuance of Goverment Regulation No. 35 Year 2021 on  Temporary Employment Agreement, Outsourcing, Working Hours and Breaks and Termination of Employment Relationships on 2 February 2021, which stipulates – among others – as follows:

 

 

No. Calculation Reason
1. ·       Severance Pay :

1x Severance pay calculation

 

·       Service Pay :

1x service pay calculation

 

·       Compensation.

  1. The Company is merging, consolidating or separating the Company, and the Employee isnot willing to continue the work relationship or the Employer is not willing to accept the Employee.
  2. The Employer makes a Termination of Employment because of the takeover of the Company.
  3. The Company perform efficiency to prevent losses.
  4. The Company is closed not because the Company suffered a loss.
  5. The Company is in Postponement of Debt Settlement Obligation condition, not because the Company has suffered a loss.  
  6. There are applications for Termination of Employments submitted by the Employee with cause “Violation of Employee’s Rights by Employers”.
2. ·       Severance Pay :

0,5x Severance pay calculation

 

·       Service Pay :

1x service pay calculation

 

·       Compensation.

  1. If there any change in the working condition during the company Takeover and the Employee is not willing to continue the work relationship.
  2. The Company perform efficiency because the Company suffers a loss.
  3. The Company is closed because the company suffered losses continuously for 2 (two) years or experienced losses not continuously for 2 (two) years.
  4. The Company is closed because of Force Majeure.
  5. The Company is in Postponement of Debt Settlement Obligation condition, because the Company has suffered a loss. 
  6. The Company goes bankrupt (in this case it will be paid by Curator).
  7. Employee commit violations in the Collective Labor Agreement which previously had been given warning letters 1,2 and 3.
3. ·       Severance Pay :

0,75x Severance pay calculation

 

·       Service Pay  :

1x service pay calculation

 

·       Compensation.

The Company is in Force Majeure situation but not resulted Company is closing down.
4.  

·       Compensation.

 

 

·       Detachment money, which is specified in Collective Labor Agreement.

  1. Existence of decision on industrial relations disputes settlement, that declare Employer is inaction of actions as referred to “Employee Right Violation by Employer” upon applications submitted by Employee.
  2. Employee who resigns voluntarily and have met the requirements that Employee is unable to perform their job for 6 (six) months due to being detained by the authorities for allegedly committing a criminal act.
  3. Employee who absents for 5 (five) working days or more consecutively without written information as completed with valid evidence and already summonned by the Employer for 2 (two) times as properly and written.
  4. Employee who has committed an urgent violation stipulated in the Collective Labor Agreement.
  5. Employee was unable to perform their job for 6 (six) months because they are under criminal arrest that caused losses to the Company.
  6. If the court decides the criminal case before the end of 6 (six) months end as mentioned and Employee found guilty.
5.  

·       Service Pay :

1x service pay calculation

 

·       Compensation.

  1. Employee was unable to perform their job for 6 (six) months because they are under criminal arrest which does not cause loss to the Company.
  2. If the court decides the criminal case before the end of 6 (six) months period as intended, and the Employee is found guilty.
6. ·       Severance Pay :

2x Severance pay calculation

 

·       Service Pay :

1x service pay calculation

 

·       Compensation.

 

  1. Employee experienced prolonged illnes or disability due to work accidents and are unable to carry out their work after exceeding the 12 (twelve) months limit.
  2. Employee can apply for Termination of Employment if they experienced prolonged illnes or disability due to work accidents and are unable to carry out their work after exceeding the 12 (twelve) months limit.
  3. The Employee died.
7. ·       Sevarance Pay :

1,75x Severance pay calculation

 

·       Service Pay :

1x service pay calculation.

 

·       Compensation.

The Employers can terminate the Employee for the reason that the Employee is entering retirement age.

 

Should there be any further questions, please do not hesitate to contact us.

Thank you !

 

 

SINAGA | TJAKRA | BAHAR LAW FIRM

Categories: Articles

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