Tag: Severance Pay

Company Obligations when Dismissing Employees

Posted by Irfan Disnizar, SH. on

Basically, if the company is going to lay off its employees, there are a number of things that must be paid to the employees, including: Severance Pay, Service Reward Money, and Compensation, with the following calculations:

Severance Pay:

  1. working period less than 1 year, 1 month wage;
  2. working period of 1 year or more but less than 2 years, 2 months wages;
  3. working period of 2 years or more but less than 3 years, 3 months wages;
  4. working period of 3 years or more but less than 4 years, 4 months wages;
  5. working period of 4 years or more but less than 5 years, 5 months wages;
  6. working period of 5 years or more, but less than 6 years, 6 months wages;
  7. working period of 6 years or more but less than 7 years, 7 months wages;
  8. working period of 7 years or more but less than 8 years, 8 months wages;
  9. 8 years of service or more, 9 months wages.

Service Reward Money:

  1. working period of 3 years or more but less than 6 years, 2 months wages;
  2. working period of 6 years or more but less than 9 years, 3 months wages;
  3. working period of 9 years or more but less than 12 years, 4 months wages;
  4. working period of 12 years or more but less than 15 years, 5 months wages;
  5. working period of 15 years or more but less than 18 years, 6 months wages;
  6. working period of 18 years or more but less than 21 years, 7 months wages;
  7. working period of 21 years or more but less than 24 years, 8 months wages;
  8. 24 years of service or more, 10 months wages.

Compensation:

  1. annual leave that has not been taken and has not fallen;
  2. costs or fees for returning workers and their families to the place where workers are accepted to work;
  3. other matters stipulated in work agreements, company regulations, or collective labor agreements.

Dari semua perhitungan di atas dapat di tambah atau di kurangi sesuai dengan keadaan yang terjadi misalnya,  M&A dalam perusahaan, karyawan di PHK menjelang masa Pensiun atau PHK karena Karyawan meninggal dunia atau mengalami cacat parah yang menyebabkan Karyawan tersebut tidak dapat bekerja Kembali, dan beberapa keadaan lainnya.