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Welcoming Unemployment Security

One of the most sensitive and enduringly controversial issues of the Job Creation Law is that of severance pay.

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KOMPAS/TOTOK WIJAYANTO

Omnibus law rejection banners were posted on the fence of the Parliament Building, Jakarta, when workers rallied to reject the Omnibus Law Bill on job creation on Monday (1/20/2020).

One of the most sensitive and enduringly controversial issues of the Job Creation Law is that of severance pay.

Employers have strived to reduce and rationalize their severance pay obligations, no longer 32 times employee wages. Meanwhile, workers, represented by trade unions, insist that there should be no reduction in severance pay. According to them, severance pay according to the original version of Law No. 13/2003 on Manpower is fixed and nonnegotiable.

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