The calculation of severance pay is important for every employee to know. So that employees can calculate themselves and can ask for their rights if the company does not provide or does not provide them. When employees are no longer working, severance pay becomes important because it can be used to survive for a while. There are several rights that can be obtained by laid-off employees. Severance pay is a number of budget allocated for company employees when the work period has been completed. The budget is also given when the employee accepts termination of employment. The fund is a form of appreciation from the company where the employee works for their service period. The budget is also intended as a compensation for rights because employees get termination of employment or layoffs. Regarding the legal basis for calculating severance pay in the copyright law, it is explained that employees who resign or leave due to layoffs are obliged to get severance pay, UPMK and or UPH. Giving a certain amount of money to employees when they stop working is mandatory. This has been recorded in Law No. 13 of 2003 relating to employment.
Of course the calculations are slightly different from the details of salaries and other privileges.
Because it is mandatory and entered into the law, the grant automatically puts forward the applicable regulations. Giving money from the company where the employee works is intended as a form of responsibility. The company has the responsibility to provide salaries and other rights to every employee who has worked. The provision of money is also intended as a replacement for the company's inability to provide salaries after layoffs. In addition, the severance budget is calculated and given so that employees can meet the needs of themselves and their families when they are laid off. Of course the calculations are slightly different from the details of salaries and other privileges. There are several types of budgets that are given to employees when they are laid off or have finished their service period.
Do Resigned Employees Still Get Severance Pay?
The first type is UP listed in Law No. 13 of 2003 relating to manpower. In this case what is referred to as UP is the budget or basic salary that has been calculated with the right salary. If the calculation is not appropriate, the employee can take care of the less severance pay. The UPMK is calculated based on the monthly salary, allowances, and others that the company's employees are entitled to. Of course, in this case the calculation is adjusted to the rights that the employee should get during the service period. UPH is given to employees as a form of money for severance pay for company decisions. UPH is also an employee's right and must be given if the company imposes termination of employment or layoffs. Do Resigned Employees Still Get Severance Pay? Separate money, the amount of which is regulated in the Work Agreement, Collective Labor Agreement, or Company Regulations. Is it possible to lay off without severance pay? If based on the Job Creation Law, employees who can get severance pay are those who resign and are also laid off. However, not all employees who have been laid off can get severance pay. Employees who cannot get severance pay are employees who have been laid off due to committing a crime. For example, one employee stole so the company laid off him. The employee cannot get the severance pay as it should. This is regulated in PP Number 35 of 2021 concerning Work Agreements for Certain Time, Outsourcing, Working Time and Rest Time, and Termination of Employment.
The basic salary is around IDR 5,000,000 every month with an allowance of IDR 2,000,000 every month.
Based on article 156 paragraph (5) of the Job Creation Law, the rights of laid-off workers are regulated by Government Regulation No. 35 of 2021. If a layoff occurs, according to a Government Regulation, workers are entitled to severance pay, years of service awards and compensation. In the event of a layoff, the employee is entitled to compensation. 3. Other matters stipulated in the employment agreement and company regulations. The calculation of retirement severance means that someone has been laid off because he has entered retirement. For this reason, the calculation of the severance pay is as follows. Good at being laid off by the company because he has entered retirement. The basic salary is around IDR 5,000,000 every month with an allowance of IDR 2,000,000 every month. The term of work for Bagus has been 8 years and 8 months with 7 days of leave remaining.
The period of service award is 1 time the provisions of the applicable UPMK.
Workers are entitled to severance pay with the calculation of the severance pay of the bankrupt company being 0.5 times or half of the applicable severance pay provisions. The calculation of the severance pay of the bankrupt company will be based on how long the employee has worked for the company. However, it should be noted that these rights are obtained for workers who work on an indefinite time agreement. The period of service award is 1 time the provisions of the applicable UPMK. It should also be noted for companies that the priority of paying workers/labor rights when the company goes bankrupt is the unpaid wages of workers. So, payment of workers' wages that have not been paid must take precedence before making payments to creditors. As for other rights obtained by workers, they will be paid after the debtor or company pays the debt to the creditor. The calculation of the severance pay of the bankrupt company will be based on how long the employee has worked for the bankrupt company.
This rule or formula is used when the employee is no longer working due to retirement.
For workers who work less than one year, they will get one month's wages. As for workers who work for 1 year or more for up to 2 years, they will get a severance calculation for the bankrupt company as much as 2 months of salary and so on. However, workers who have worked for 8 years or more will get 9 months of salary. If the worker in the absence of presence is sick for a long period of time or has an accident that causes a disability that makes him unable to work for 12 months. As a way of calculating severance pay for employees who died, severance pay is automatically given to their heirs. This rule or formula is used when the employee is no longer working due to retirement. There are acts of violence, persecution, threats and others so that workers ask for layoffs. Delay and close debt payments but not because of losses.
This formula occurs when the company is in a state of force majeure but has not yet stopped operating. Layoffs due to changes in working conditions due to the company being taken over which makes workers unwilling to continue working. If the employee receives a severance pay that does not comply with the provisions, the employee has the right to manage it based on the Law on Industrial Relations Dispute Settlement No. To resolve disputes, the first step that can be taken is through deliberation between employees and the company. If consensus is not reached, bipartite negotiations can be carried out. It is a negotiation between employees and the company to resolve industrial relations issues. The maximum period of negotiation is 30 days from the start of bipartite negotiations. If the negotiation route fails or the company refuses to negotiate, the employee can register the dispute with the local manpower agency by attaching evidence of the attempted settlement. After recording, the agency will provide conciliation options for employees and companies. Conciliation is the resolution of problems in managing insufficient severance pay by deliberation mediated by a neutral conciliator. If the employee and the company still cannot agree on a joint solution, a mediation procedure is carried out. Mediation is carried out no later than 30 days after being delegated to the relevant agency. If the mediation still does not reach an agreement, the mediator registers with the Industrial Relations Court. The court stage is the last stage that can be taken to take care of the insufficient severance pay. Employees can file a lawsuit in court no later than 1 year from the date of termination of employment by attaching evidence of efforts to settle through mediation and conciliation.