Jokowi Denies Job Creation Law Eases Layoffs, What are the Facts?

JAKARTA, KOMPAS.com – President Joko Widodo mentioned a lot of disinformation and hoaks that made the Law of Creation Work rejected by the public.

One of them is about termination of employment (PHK).

Jokowi argue Work Creation Act will make it easier for companies to make unilateral layoffs of their employees.

“Can companies be dismissed unilaterally at any time? Not true. The truth is that companies cannot unilaterally lay off workers,” said Jokowi in a press statement from the Presidential Palace, Bogor, Friday (9/10/2020)

What are the facts?

Also read: Jokowi Calls the Job Creation Law Easier for MSME Business Permits

If you compare the Job Creation Law with Law Number 13 Year 2003 concerning Manpower, there are a number of rules that have changed regarding layoffs.

Article 161 of the Manpower Law regulates that employers can terminate employees if workers violate the provisions stipulated in work agreements, company regulations or collective working agreements.

However, layoffs can only take effect after workers are given warning letters up to three times in a row.

This article was deleted through the Job Creation Law.

In its place, the Job Creation Law is added to article 154A letter j which regulates similar matters.

Also read: Jokowi Calls Leave Not Removed in the Job Creation Bill, Here’s the Fact

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