Ministry of Human Rights Appreciates TikTok-Tokopedia Clarification on Layoffs

The Ministry of Human Rights (HAM) has expressed appreciation for the clarification from TikTok–Tokopedia’s management confirming that no layoffs (PHK) occurred at the company. The government considers the certainty of this information important for maintaining worker calm and fostering harmonious industrial relations. Director General of Human Rights Services and Compliance at the Ministry of Human Rights, Munafrizal Manan, stated that the affected workers were employees who voluntarily chose a compensation scheme during the company’s organisational adjustment process. “Every corporate policy, including organisational adjustments in the employment sector, must be implemented through a transparent, participatory process that prioritises dialogue and ensures respect for workers’ rights in accordance with statutory regulations and human rights standards. This is part of responsible business practices,” Munafrizal said in a press statement received by Media Indonesia on Wednesday (8/7). He stressed that layoffs are not only related to industrial relations but also concern the fulfilment of human rights, as they can affect the right to a decent livelihood, social security, health, education, and the welfare of workers and their families. “The Ministry of Human Rights appreciates companies that do not resort to layoffs amidst the current geopolitical and geo-economic challenges. The policy of not laying off workers is a tangible manifestation of respect for and fulfilment of human rights,” he said. Munafrizal also reminded that any decision that could potentially reduce employment opportunities must be taken carefully, proportionally, and with consideration of the possible human rights impacts. According to him, layoffs should be the last resort after all other alternatives have been exhausted. He further emphasised that business actors have a responsibility to respect human rights as stipulated in the United Nations Guiding Principles on Business and Human Rights. “Before making decisions regarding layoffs, companies must conduct human rights due diligence to identify, prevent, and mitigate negative impacts on workers and communicate the process transparently to stakeholders,” he concluded.