If I Get Fired, What Are My Rights According to Indonesian Law?

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By:

Team of Hukumindo

Previously, the Hukumindo.com platform has discussed about "How to Obtain Indonesian Citizenship?", read also: "How to Open a Police Report in Indonesia?" and on this occasion will be discussed regarding "If I Get Fired, What Are My Rights According To Indonesian Law?"

Termination of employment is the end of the employment relationship due to some reason, as a results in the termination of the rights and obligations between the worker and the entrepreneur.[1] The governing law that regulates employment termination in Indonesia is Law Number: 13 of 2003 concerning Manpower. What are the rights of workers under Indonesian law when he/she was fired by his company? This article assumes that you work in Indonesian jurisdiction and in an Indonesian company.

In the event of termination of employment, based on Article 156 paragraph (1) of Law Number: 13 of 2003 concerning Manpower, the worker is entitled to severance pay, service award, and compensation money.[2]

Severance Pay

Severance pay is the right of the employee affected by the Termination, commonly in the form of money from the company/employer as a result of the Termination of Work. The amount is the same as the basic salary plus other fixed allowances or the same as the salary each month.

The amount of severance pay are vary, depending on the employee's tenure. For example, for a period of less than a year, you will get one month's salary, while for a period of one to two years you will get two months of salary, and so on.

Service Award

The long service award is given as a sign of employee loyalty to a company. The condition, you must work at least 3 years in the company.

The calculation of the award money is based on Article 156 paragraph (3) of Law Number: 13 of 2003 concerning Manpower. For example, if the service period is three to six years, you will receive an award of two months' wages.

Compensation Money

The compensation for the rights of employees affected by termination of employment is compensation for the rights of workers who have not been taken. The explanation for this compensation is regulated in Article 156 of Law Number: 13 of 2003 concerning Manpower. For example, the cost of annual leave, the cost of returning employees and their families to a new place of work, housing reimbursement and medical treatment are set at 15% of the severance pay and period of service pay.

If you have difficulty claiming the rights as mentioned above to the company where you used to work, contact us, feel free in 24 hours, we will be glad to help you.

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

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References:

1. "Pemutusan Hubungan Kerja", id.wikipedia.org., Diakses pada tanggal 21 Oktober 2021, https://id.wikipedia.org/wiki/Pemutusan_hubungan_kerja

2. "PHK Bisa Terjadi Kapan Saja, Ketahui Prosedur dan Hak-hakmu Sebelum Terjadi", blog.pluang.com., Diakses pada tanggal 21 Oktober 2021, https://blog.pluang.com/artikel/hak-karyawan-phk/

3. Law Number: 13 of 2003 concerning Manpower.