Be Aware of Termination !

When you are an employee, you should be ready to face layoffs that can come at any time. Layoff (Termination of Employment) is an action to terminate the employment relationship between employees and companies caused by several reasons. Layoffs are made when something happens that cannot be avoided anymore. Layoff itself has been regulated in Article 151 of Law no. 13/2003 on employment, that the employers, workers / laborers, trade / labor unions and the government should make every effort to avoid termination of employment.

In the process of establishing a working relationship between the company and employees sometimes occur disputes resulting in the termination of employment. The matters which may result in termination of employment have been regulated in Article 158 paragraph 1 of Law no. 13/2003 on manpower. In the law it is stated that the employer may terminate the employment relation to the worker / laborer on the grounds that the worker has committed the following serious mistake:

1. Perform fraud, theft, or embezzlement of goods and / or money belonging to the company
2. Providing false or falsified information to the detriment of the company
3. Drunk, drinking intoxicating, using and / or distributing narcotics, psychotropic, and other addictive substances in the work environment
4. Perform immoral acts or gambling in the work environment
5. Attacking, abusing, threatening, or intimidating co-workers or employers in the workplace
6. Persuade co-workers or employers to perform acts that are contrary to legislation
7. By carelessly or intentionally destroying or letting in the event of a dangerous property belonging to the enterprise that causes harm to the company
8. By carelessly or intentionally letting a co-worker or employer in a state of danger at work
9. Dismantle or divulge company secrets that should be kept secret except for the interest of the state
10. Perform other acts within the corporate environment that are subject to imprisonment of 5 (five) years or more

It should be noted, however, that the termination of employment due to serious errors as written above should be supported by the following evidence:

1. Workers / laborers are caught red-handed
2. There is an acknowledgment of the worker / laborer concerned, or
3. There is other evidence in the form of an incident report made by the competent authorities of the company concerned and supported by at least 2 (two) witnesses

While the company is prohibited from termination of employment (PHK) for several reasons as follows:

1. Workers are absent from work due to illness according to doctor’s statement for a period not exceeding 12 months continuously
2. Workers are unable to perform their work, as they fulfill their obligations to the state in accordance with the prevailing laws and regulations
3. Workers undertake the worship mandated by their religion
4. Workers get married
5. Female workers are pregnant, give birth, fall pregnant, or breastfeed their babies
6. Workers have a blood relation and / or marital bond with other workers within a company, unless otherwise provided for in employment agreements, company rules or collective bargaining agreements
7. Workers establish, become union members and / or union officials, workers undertake trade union activities outside working hours, or within hours of business agreements, or under the terms of employment agreements, company rules or collective agreements
8. Workers who complain to the authorities about the actions of companies that commit criminal offenses
9. Due to the different understandings, religion, political flow, ethnicity, color, class, sex, physical condition, or marital status
10. Workers in a permanent disability, illness due to occupational injury, or illness due to an employment relationship according to a doctor’s certificate whose term of healing can not be ascertained