Apindo to Issue Guidelines to Anticipate Employee Layoffs

The Indonesian Employers’ Association (Apindo) will soon issue 12 guidelines for employers and workers to mitigate layoffs. “We are preparing how to anticipate and mitigate the possibility of layoffs,” said Darwoto, Deputy Chair for Employment at the Apindo National Leadership Board, in Jakarta on Tuesday. According to him, the guidelines being drafted by the association aim to provide protection to the relevant parties, both employers and workers. Darwoto said the guidelines or steps being prepared are expected to provide a sense of security to the parties. He explained that under the 12 guidelines, an employer may terminate employment only if all conditions are met and the situation is no longer salvageable. “The 12 guidelines include steps such as the company reducing working hours, implementing efficiency measures, and experiencing a decline in orders,” he said. He further stated that once these levels or guidelines have been fulfilled, it is hoped the government can assist the company through stimulus measures when a crisis occurs. However, he continued, only when the situation truly cannot be sustained may the company lay off employees. All the guidelines being drafted are expected to anticipate employee layoffs. “In fact, in business terms, layoffs are actually a normal occurrence now,” he added.