Indonesian Political, Business & Finance News

Govt talks tough on holiday bonus

| Source: JP

Govt talks tough on holiday bonus

BANJARMASIN, South Kalimantan: The Banjarbaru administrative
city authorities threatened on Thursday to take to court
employers who fail to pay holiday bonus to their workers.

Head of the local manpower and cooperative agency Ruspandie
said he would enforce Law No. 14/1999 on manpower, which
threatens an employer who refuses to provide holiday bonus with a
three-month jail sentence.

Ruspandie insisted that the tough measure would not discourage
investment. The policy is aimed at promoting harmonious
industrial relations between investors, employers and workers, he
said.

The agency has distributed a circular containing the warning
to 109 companies across the city, asking them to pay the holiday
bonus by Dec. 3.

Ruspandie said his staff would carry out a field observation,
to ensure that the companies complied with the policy. -- JP

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