Is Resigning Workers Obtain Severance Payment?

(iStock)

By:

Team of Hukumindo

Previously, the www.hukumindo.com platform has talk about "Knowing Conditional Leave According to Indonesian Law", "Knowing Parole in Indonesia", you may read also "A Brief Insight of Assimilation in Indonesia" and on this occasion we will discuss about 'Is Resigning Workers Obtain Severance Payment?'. 

Recently, we were presented with news in cyberspace about the layoffs that befell 'Shopee' employees. Of course this is not good news to hear for both employers and workers. Although this article is not directly related, it will discuss the other side of the termination of the employment relationship between workers and employers, namely related to the rights of workers who decide to resign. Is Resigning Workers Obtain Severance Payment? That's roughly the main question of this article.

Legal Basis of Resign in Indonesian Law

Provisions related to resigning have been regulated in Government Regulation (PP) Number 35 of 2021 concerning Work Agreements for Certain Time, Outsourcing, Working Time and Rest Time, and Termination of Employment. The regulation contains Article 36 letter I which reads, the worker or laborer resigns of his own free will and must meet the following requirements:[1]

• Submit a written application for resignation no later than 30 (thirty) days prior to the start date of the resignation;
• Not bound in the bond of service; and
• Continue to carry out their obligations until the date of resignation.

These requirements must be met by employees who wish to resign from their jobs. First, understand the conditions listed in the regulations before you find out about severance pay.[2] The important thing regarding resignation is that it is not done suddenly or hastily, according to the rules as referred to above, it is done within 30 days of written notification. In addition, they continue to carry out their work obligations until the date of resignation arrives, although in practice, before the date of resignation, handovers have been carried out to other workers.

Is Resigning Get Severance Pay? 

Every worker has his own rights and obligations. What about employees who decide to leave the company? Are there any rights that can be obtained by them? The answers to questions related to the rights of employees who resign have been recorded in Government Regulation (PP) Number 35 of 2021, to be precise in Article 50, that workers or laborers who resign of their own accord and meet the requirements as referred to in Article 36 letter I are entitled to:[3]

1. Compensation money in accordance with Article 40 paragraph (4); and
2. Separation money, the amount of which is regulated in the Employment Agreement, Company Regulations or Collective Labor Agreement.

What is meant by compensation money? (a) Annual leave that has not been taken and has not yet in due date condition; (b) The cost or cost of returning the worker or laborer and his family to the place where the worker or laborer is accepted to work; and (c) Other matters stipulated in the Employment Agreement, Company Regulations or Collective Labor Agreement. (d)  Furthermore, Article 58 (1) regulates employers who include workers or laborers in the pension program in accordance with the provisions of the legislation in the field of pension funds.[4] 

What is meant by separation money? Separation money is money given by the company as an award for the dedication and loyalty of employees during a certain period of service with good performance, and is a compensation for the absence of severance pay and service fees. Separate money is usually given specifically to employees whose duties and functions do not directly represent the employer (non-management committee). In contrast to severance pay, compensation for entitlements, and service pay, this severance pay is based on the employment contract and company policies.[5]

From the provisions as explained above, employees who resign or resign do NOT obtain severance pay. And if you have any legal issue with this topic (rights of workers who decide to resign), contact us then, feel free in 24 hour, we will be happy to assist you.

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

________________

References:

1. "Karyawan Resign Berhak Dapat Pesangon? Cek Aturannya!", www.cnbcindonesia.com., diakses pada tanggal 26 September 2022, https://www.cnbcindonesia.com/mymoney/20220204150921-72-312945/karyawan-resign-berhak-dapat-pesangon-cek-aturannya

2. Ibid.

3. Ibid.

4. Ibid.

5. "Perbedaan Uang Pisah dan Pesangon yang Wajib Diketahui", glints.com., Diakses pada tanggal 26 September 2022, https://glints.com/id/lowongan/perbedaan-pesangon-dan-uang-pisah/#.YzDk_X1Bxdg