Cool! Layoffed Giant Employees Get Severance Pay Above The Provisions Of The Job Creation Law, How Much?

JAKARTA - The retail company, PT Hero Supermarket Tbk, has decided to close all remaining Giant outlets by the end of July 2021. This decision will certainly have an impact on thousands of employees who are threatened with termination of employment or layoffs. Even so, management ensures that employees will receive severance pay. In fact, above the provisions of the law (UU) Job Creation.

Head of Corporate and Consumer Affairs of PT Hero Supermarket Tbk, Diky Risbianto, said that the company has communicated with employees regarding the company's decision to close all Giant outlets. Diky said, his party also treats all parties fairly and respectfully.

"As an expression of our gratitude for the support and hard work of the affected employees, we will provide compensation above the amount recommended in the Job Creation Law to facilitate their transition period," he said when contacted by VOI, Thursday, May 27.

Furthermore, Diky said the closure of the five Giant outlets was because the company wanted to convert to IKEA and was considering converting a number of outlets into Hero Supermarkets, and was negotiating a number of outlets to transfer ownership to third parties.

"With a heavy heart, all other Giant outlets in Indonesia will stop operating at the end of July 2021," he said.

How much severance pay will you receive? Here's the calculation:

The provision of severance pay for Giant employees will refer to Chapter IV of Manpower in Law Number 11 of 2020 or the Omnibus Law of Cipta Kerja. Article 156 explains that the severance pay will follow the employee's tenure.

"In the event of termination of employment, the entrepreneur is obliged to pay severance pay and / or service pay and compensation for rights that should have been received," reads Article 156 paragraph (1).

Meanwhile, Article 156 paragraph (2) describes severance pay as referred to in paragraph (1). The money is given under the following conditions:

a. work period of less than 1 (one) year, 1 (one) month of wages;

b. work period of 1 (one) year or more but less than 2 (two) years, 2 (two) months of wages;

c. work period of 2 (two) years or more but less than 3 (three) years, 3 (three) months of wages;

d. work period of 3 (three) years or more but less than 4 (four) years, 4 (four) months of wages;

e. work period of 4 (four) years or more but less than 5 (five) years, 5 (five) months of wages;

f. work period of 5 (five) years or more, but less than 6 (six) years, 6 (six) months of wages;

g. work period of 6 (six) years or more but less than 7 (seven) years, 7 (seven) months of wages;

h. work period of 7 (seven) years or more but less than 8 (eight) years, 8 (eight) months of wages;

i. work period of 8 (eight) years or more, 9 (nine) months of wages.

Article 156 paragraph (3) explains in more detail about the work period award money, as referred to in paragraph (1) is given with the following conditions:

a. work period of 3 (three) years or more but less than 6 (six) years, 2 (two) months of wages;

b. work period of 6 (six) years or more but less than 9 (nine) years, 3 (three) months of wages;

c. work period of 9 (nine) years or more but less than 12 (twelve) years, 4 (four) months of wages;

d. work period of 12 (twelve) years or more but less than 15 (fifteen) years, 5 (five) months of wages;

e. work period of 15 (fifteen) years or more but less than 18 (eighteen) years, 6 (six) months of wages;

f. work period of 18 (eighteen) years or more but less than 21 (twenty one) years, 7 (seven) months of wages;

g. work period of 21 (twenty one) years or more but less than 24 (twenty four) years, 8 (eight) months of wages;

h. work period of 24 (twenty four) years or more, 10 (ten) months of wages.

Meanwhile, Article 157 explains the wage component that is used as awareness of severance pay.

"The components of wages used as the basis for calculating severance pay and service pay consist of basic wages and regular allowances given to workers / laborers and their families," states Article 157 paragraph (1).