Termination of Employment

Old Rules

New Rules

Article 151

1. Employers, workers / laborers, trade / labor unions and the government must make every effort to prevent termination of employment.
2. In the event that all efforts have been made, but the termination of employment cannot be avoided, then the intention of terminating employment must be negotiated by the employer and the workers / labor union or with the worker / laborer if the worker / laborer is not a member of a worker/ labor union.
3. In the event that the negotiation as meant in paragraph (2) does not result in an agreement, the entrepreneur can only terminate the working relationship with the worker / laborer after obtaining a ruling from the industrial relations dispute settlement institution.
   

Article 152

1. An application for a termination of employment shall be submitted in writing to the industrial relations dispute settlement institution, along with the reasons underlying it.
2. The application for the stipulation as meant in paragraph (1) may be accepted by the industrial relations dispute settlement institution if it has been enacted as meant in Article 151 paragraph (2).
3. An application for termination of employment can only be granted by the industrial relations dispute settlement agency if it turns out that the intention to terminate the employment relationship has been negotiated, but the negotiation has not resulted in an agreement.

Article 37 (NEW REGULATION)

1. Employers, Workers / Laborers, Trade Unions / Labor Unions, and the Government must make every effort to prevent termination of employment.
2. In the event that Termination of Employment is unavoidable, the employer will notify the purpose and reasons for termination of employment to the Workers / Laborers and / or Workers / Labor Unions in the Company if the Workers / Laborers concerned are members of the Workers / Labor Union .
3. An employment termination notification shall be made in the form of a notification letter and submitted legally and properly by the Employer to the Worker / Laborer and / or Worker / Labor Union no later than 14 (fourteen) working days prior to the termination of the employment relationship.
4. In the event that the Termination of Employment is carried out during the probationary period, a notification letter shall be submitted no later than 7 (seven) working days prior to the Termination of Employment.

Article 38 (NEW REGULATION)

In the case that a Worker / Laborer has received a notification letter and does not reject the Termination of Employment, the Employer must report the Termination of Employment to the ministry that administers government affairs in the manpower sector and / or the agency that administers government affairs in the manpower sector at the province and regency / city level.

Article 39 (NEW REGULATION)

1. Workers / laborers who have received a letter of termination of employment and stated that they have refused, must make a letter of rejection accompanied by reasons not later than 7 (seven) working days after receiving the notification letter.

Old Rules

nEW rULES

Article 156

1. In the case of termination of employment, the employer is obliged to pay severance pay and / or service pay and compensation for entitlements that should have been received.
2. The calculation of severance pay as referred to in paragraph (1) shall be at least as follows:
   SAME
3. The period of service reward money as referred to in paragraph (1) shall be given under the following conditions:
   SAME
4. The compensation money that should be received as referred to in paragraph (1) includes:
   1. annual leave that has not been taken and has not been aborted;
   2. cost or return fee for the worker / laborer and their family to the place where the worker / laborer is accepted to work;
      
   3. housing compensation as well as medication and care is set at 15% (fifteen percent) of the severance pay and / or service pay for those who meet the requirements;
      
   4. other matters stipulated in work agreements, company regulations or collective working agreements.
5. Changes in the calculation of severance pay, the calculation of the reward for years of service, and compensation for rights as referred to in paragraph (2), paragraph (3), and paragraph (4) shall be stipulated by a Government Regulation.

Article 40

1. In the case of termination of employment, the employer is obliged to pay severance pay and / or service pay and compensation for entitlements that should have been received.
2. The severance pay as referred to in paragraph (1) shall be provided with the following conditions:
   SAME
3. The period of service reward money as referred to in paragraph (1) shall be given on condition
   as follows:
   SAME
4. The compensation money that should be received as referred to in paragraph (1) includes:
   1. annual leave that has not been taken and has not failed;
      
   2. costs or fees to return home for Workers / Laborers and their families to the place where Workers / Laborers are accepted to work; and
      
   3. other matters stipulated in the Work Agreement, Company Regulations, or Collective Bargaining Agreement.
5. Changes in the calculation of severance pay, the calculation of the reward for years of service, and compensation for rights as referred to in paragraph (2), paragraph (3), and paragraph (4) shall be stipulated by a Government Regulation.