East Java Labour Department Uncovers 'Seasonal' Layoff Scheme Before Eid to Avoid Paying Holiday Allowance

The East Java Labour Department has found indications of companies carrying out layoffs to avoid paying holiday allowances (THR). This was discovered in a company in Gresik, where thousands of employees were laid off before Eid and will be re-employed after the holiday. “We found this in Gresik,” said the Head of the East Java Labour Department, Sigit Priyanto, in Surabaya on Wednesday (25/2). The East Java Labour Department has held discussions with the company to prevent layoffs before Eid. As a result, the company has agreed to temporarily halt the layoffs. Therefore, Sigit said, the issue of the layoffs of thousands of workers in Gresik before Eid has been resolved. “There will be no layoffs; all workers can return to work,” said Sigit. Sigit believes that this is a new tactic to avoid paying THR to workers, even though they need a lot of money during Eid and the THR is their main source of funds. Sigit asked workers who experience problems with THR payments to report them to the THR complaint posts in 38 regencies and cities in East Java. “Not only in Gresik, if there are workers experiencing THR problems, please report them to the posts,” he said. The East Java Labour Department officially opened THR complaint posts for workers throughout East Java on Wednesday (25/2). The posts are located in 38 regencies/cities in East Java and are ready to receive all complaints from workers regarding THR payments. Sigit said that regarding THR, the Labour Department asked companies to pay THR to workers seven days before Eid, but the Ministry of Labour asked companies to pay THR 14 days before Eid. He said that this is up to the companies. However, he emphasised that THR must be paid in accordance with government regulations. “This must be obeyed by companies in East Java,” said Sigit. (FL/E-4)