Layoff procedure

It was sad to read Asikin Effendi's letter of Aug. 10, concerning recent layoffs carried out by PT IBP without proper legal procedures. I believe that such layoffs are a rampant event due to the economic crisis or some other reason.

From a legal point of view, it is the company's right to fire their employees provided that they fulfill their obligation to the fired employees. In such conditions, on the basis of the prevailing regulation, the company must pay the employees by observing their working period.

According to the law, the first stage should be internal settlement, which can be conducted directly between the employees and the company. Should, in such a first stage, no settlement be agreed to by the parties, the case must then be taken by either party to the mediator official of the Ministry of Manpower. If in this stage no settlement is reached between the parties, the mediator official will submit the case to the Labor Dispute Settlement Committee.

If you need more information, please contact us at 8004148.

V. HARLEN SINAGA

Jakarta