Minister Airlangga is confident that the law on job creation is safer for laid-off workers

BigBussiness – Coordinating Minister of Economic Affairs Airlangga Hartarto said that the Omnibus Act on the Job Creation Act, which was just passed last week, provides more protection guarantees for employees who have experienced termination of employment (PHK).

He claimed that under the Labor Act, workers who experience redundancies will be protected by the authorities. Not only that, the government will also provide social assistance for special education.

“They can receive six months of semi-social assistance while they train until they have access to new jobs,” Airlangga said at a virtual press conference on Monday (12.10.2020).

Airlangga also claimed that the wording of this rule was much better than just giving severance pay to employees who were laid off.

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“When it comes to severance pay, the government has set a job loss guarantee. So not only do they pay severance pay, but they also receive training,” he said.

Earlier, the president of the Confederation of Indonesian Workers Unions (KSPI) Said Iqbal disagreed with the arguments for the claim of the garbage law as Airlangga said.

“In fact, the severance pay is reduced. This is even recognized by the government and the DPR, if the severance pay is reduced from 32 times to 25 times (19 are paid by employers and 6 months through the Job Loss Guarantee or JKP, which will be administered by BPJS Ketenagakerjaan),” in Said Iqbal. when you contact BigBussiness.

“Besides, it is still unclear which JKP has stated 6 times or 6 months, because we did not find this in the omnibus law. Where can there be only a few hundred thousand for 6 times,” he added.

He said that KSPI was of the opinion that the provisions regarding BPJS Ketenagakerjaan who would pay a severance pay of 6 months’ salary did not make sense. Where do the funds come from? A reduction in the value of severance pay is clearly detrimental to workers.

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“In addition, because in the Omnibus Act there is contract work and outsourcing without restrictions for the type of industry and can be” for life “, it is likely that no permanent employees will be hired. When it is not appointed, severance pay will be lost (no longer achieved by workers), “he concluded. .

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