The process of laying off employees is easier, here are the rules in the Job Creation Perppu

JABARNEWS │ JAKARTA – Termination of employment or layoffs is what most employees fear the most. Especially in the midst of economic difficulties in recent years.

However, in fact the government through the Job Creation Regulation in Lieu of Law (Perppu) actually makes it easier for companies that want to lay off their employees.

Previously, in Law Number 13 of 2003 concerning Manpower, the process of terminating employee relations required the establishment of an industrial relations dispute resolution institution. Now, through the Perppu, these stages are no longer needed.

Terminations for layoffs are stipulated in the Job Creation Perppu article 151 paragraph (4) which states that layoffs can be carried out without an incracht decision from the Supreme Court. In this case, if there is no agreement, termination of employment will be carried out through the Industrial Relations Dispute settlement stage.

“In the event that the bipartite negotiations as referred to in paragraph (3) do not reach an agreement, the termination of employment relations is carried out through the next stage in accordance with the industrial relations dispute resolution mechanism,” reads article 151 paragraph 4.