Layoff
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Layoff

This day, many people complained about the condition of those who are affected by the termination of employment relationships ("LAID OFF") by the company. Their complaints range from corporate rule of injustice, imposition of resignation, until problems related severance money they earn. This article will discuss general things about the LAYOFFS that are worth to be known by workers and employers.

According to Chapter 1 number 25 Law No. 13 Years 2003 about employment (“UUK”) LAYOFF is termination of employment because certain things that result in the termination of rights and obligations between workers or laborers and businessman. In general, LAYOFF consists of 3 (three) type, there are LAYOFF for the sake of law that arranged in Chapter 154 UUK; LAYOFF by court decision that arranged in Law No. 2 Year 2004 about Industrial Relations Disputes; LAYOFF by the request of the worker that arranged in Chapter 154B UUK and Chapter 169 UUK.

LAYOFF for the sake of law is LAYOFF that happend because workers are still on probation, Time of Particular Working Agreement (“PKWT”) ends, workers reach retirement age, and workers passed away. While LAYOFF by court decision is LAYOFF which is ordered through court decisions, and LAYOFF by the request of the worker is that workers are resigning or apply LAYOFF to the court.

Employers can do a LAYOFF against workers when workers make mistakes, or because of other factors, such as the reduction of the workforce, the company is losing money, the company's status changes, and so on. In the event that LAYOFFS occur over the will of employers, company must first obtain a determination of industrial relations disputes settlement institutions.

Next, there is restrictions on employers' reasons for LAYOFF to the workers, and if company violate these limits, that LAYOFF be canceled for law. The reason is: workers sick constantly during 12 (twelve) days as evidenced by the doctor's statement, workers are doing their religious duties according to their religion workers married, workers is a woman who are pregnant, give birth, miscarriage, or breastfeeding, and others reason that arranged in UUK.

Related to LAYOFFS conducted by employers against workers Chapter 164, sentence (3) allows the UUK LAYOFF for reasons of efficiency, provided that efficiency concludes with a lock-out or closing the company, it is declared by Verdict The Constitutional Court No. 19/IX/PUU-2011. When the company was doing the efficiency that leads to the lid of the company, before making LAYOFFS against workers, the company is obligated to undertake the efforts saving or efficiency improvements, for example: reduce shift workers, eliminating overtime work, reducing work hours, accelerating the retirement of less productive workers, laying off workers for a while (the garden leave) and other businesses. If those efforts have been carried out and the company could not be saved and will be closed permanently, the company reserves the right to conduct LAYOFFS against the workers, however, the entrepreneur is obliged to notify the workers and local agencies the responsible in the field of employment (Local Employment Agency) regarding the lock-out of the company at least (seven) days before the lock-out was carried out. The notification referred to above contains the start time of the lock-out and the reasons for lock-out.

In General, the LAYOFFS procedure can be explained as here: first of all, employers and workers should make an effort to avoid LAYOFFS, including companies providing first, second, and third warning letter for workers who concerned (chapter 151 sentence (1) the UUK). If unavoidable, workers and employers (or represented union) held negotiations or bipartit, if the negotiations succeed, create mutual agreement. If the negotiations do not succeed, then the employers apply for a determination in writing accompanied by the base and his reasons to the Court of industrial relations (UKK chapter 151 sentence (3) and chapter 152 sentence (1)). As long as there has been no determination of the industrial relations dispute resolution, both parties still carry out their respective obligations, in other words the workers remain employed and employers pay wages (UUK chapter 155 sentence (2)).

When LAYOFFS have been carried out by employers in accordance with the procedure and the reasons established by UUK and other rules still apply, then the workers have right to Severance Pay, Service Reward Pay, and Compensation Pay, as well as Separation Pay when set in the company regulations or the cooperation agreement of related companies. Quantity component severance above can be carried out in accordance with the conditions set forth in UUK or appropriate by mutual agreement between employers and workers.

So this article was created to add our information together. It should be noted that most of the rules set forth in the UKK concerning employers and workers employment may be disaggregated by mutual agreement, in example : severance money quantity, PKWT, absence of provisions on paid leave, and so on. Deviations of these provisions may be made by agreement between employers with workers, or through regulation of companies as well as cooperation agreement, because the agreement that is made will apply the rules that preceded the made in General, or in the law known as the lex derogat lex generalis specialists.

in Indonesia, you can contact Law Office Suria Nataadmadja & Associates, or give a question and ask for a free legal consultation through www.surialaw.com.