DPR Member: THR Payment Violations Should Be Considered Criminal Offences

Jakarta (ANTARA) - Edy Wuryanto, a member of Commission IX of the Indonesian House of Representatives (DPR RI), stated that violations by companies in paying Holiday Allowance (THR) to their employees should now be considered criminal offences, rather than just administrative ones. He assessed that the root of the problem lies in sanctions that do not provide a deterrent effect. To date, THR violations have only been subject to administrative sanctions, such as restrictions on public services up to business cessation, but in practice, these sanctions are rarely truly implemented. “This concerns workers’ rights. If it continues to be seen as an administrative violation, the perpetrators will never be deterred. The state must be more assertive,” said Edy in a statement in Jakarta on Friday. To date, he assessed that the government has been hesitant about imposing sanctions on companies that fail to pay THR to their employees, due to concerns that it would lead to layoffs (PHK). As a result, said the member of the commission handling Labour Affairs, administrative sanctions have become ineffective and irrelevant. For this reason, he urged the government to take early preventive steps, one of which is to ensure companies’ readiness to pay THR well before the deadline. “Supervision must not only emerge close to Eid or after reports are made. Next year, companies that have violated must be visited, audited, and ensured to have budgeted for THR. This is a concrete form of prevention,” he said. On the other hand, he also pressed the Ministry of Manpower to resolve all pending reports by clarifying the role of labour inspectors. He emphasised the importance of external supervision to ensure that the performance of the apparatus runs optimally. “The work of inspectors must be supervised. Involve the Republic of Indonesia Ombudsman as an external supervisor so that there is no neglect,” he said.