Be Aware of Terminate Your Staff!

Termination of employment unilaterally have a very serious excess for either the laid off or the laid-off workers. Employers who are not aligned or dissatisfied with the work of their workers sometimes laid off without explaining the background of the decision taken. In fact, the government has regulated the termination of this working relationship in Law no. 13 of 2003 on Manpower (Manpower Act).

Mentioned in the Manpower Law, Termination of employment is termination of employment because of a certain thing that resulted in the end of rights and obligations between workers and employers Entrepreneurs are prohibited from laid off their employees for reasons such as: illness, worship, marriage, permanent disability or illness due to workplace accidents whose time period cannot be ascertained.

Termination of employment for that reason is null and void and therefore employers are obliged to reinstate workers / laborers. The law also clearly states that all parties concerned must make efforts to avoid the occurrence of termination. If the condition finds a dead end, and there is no other way that can be taken, then all parties must do the negotiation first. The termination can be done if they have been approved by the Industrial Dispute Settlement Agencies (PHI).

As long as the decision of the PHI institution has not been established, both employers and workers / laborers must continue to perform all their obligations (article 155 paragraph 2). For workers who do not accept the decision of termination made by the management company, can file a lawsuit to the industrial relations settlement agency.

Dozens of former worker of Sindo newspaper Palembang register the lawsuit to the Industrial Relations Court of Palembang, due to a one-sided dismissal late June 2017 ( After all, the relationship between worker and company is a symbiotic relationship of mutualism, so it is fitting for all parties to maintain how relationships can remain harmonious with mutual understanding of their rights and obligations.

SMART Consulting is an Indonesian Corporate Legal Services firm. We have assisted local and multinational companies in handling their corporate legal matters, including preparing resolutions and general meeting of shareholders for their Client, liaising with BKPM in regards to Client investment and business licenses, and acting in an advisory capacity for the Client.

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