Menaker Circular Regarding THR Deemed Not Protecting Workers' Rights

JAKARTA - The Minister of Manpower (Menaker) Ida Fauziyah, issued a ministerial circular regarding the implementation of giving holiday allowances (THR) from companies in the midst of the COVID-19 pandemic.

In a letter numbered M / 6 / HI.00.01 / V / 2020, Ida asked all Governors to ensure that companies pay religious THR to workers or laborers in accordance with statutory regulations.

It's just that, for companies that are unable to pay THR to their workers, he asks for a discussion to discuss solutions between employers and workers.

"The dialogue process is carried out in a friendly manner, based on transparent internal company financial reports and good faith to reach an agreement," Ida said in a circular quoted by VOI on Friday, May 8.

From the dialogue, Ida hoped that there were points that could be agreed upon, including the provision of THR which could be done gradually or even postponed.

"If the company is unable to pay the THR in full at the stipulated time in accordance with the provisions of the laws and regulations, the THR can be paid in stages," wrote Ida in point 2a of the circular letter.

"If the company is not able to pay the THR at all at the stipulated time in accordance with the provisions of the laws and regulations, the THR payment can be postponed until a certain agreed period of time," he continued on point 2b.

In this dialogue, he said, it must also be agreed on the time and method of receiving the late payment for religious THR.

Through this circular, Ida also asked for an agreement between employers and workers that the company had reported to the local manpower office.

In addition, he also emphasized that the agreement regarding the time and method of THR payment would not eliminate the obligation of entrepreneurs to pay religious THR. The Minister of Manpower said that all THR must be paid in accordance with statutory provisions and paid in 2020.

The issuance of a circular stating that the company could pay in installments or postpone the provision of religious allowances, which was then responded to by the Chairman of the Cross Factory Workers Federation (FBLP), Jumisih. He said, the circular signed by Ida was proof that the Minister of Manpower did not protect workers' rights.

Jumisih even said, if Menaker Ida seemed to want to wash hands of the problem of giving THR on the grounds that it was due to an emergency in the midst of the COVID-19 pandemic.

"Instead of pressuring companies, the Minister of Manpower seems to want to appear regal as a mediator between workers and employers. In fact, what he is doing is the politics of washing hands which is packaged with reasons of justification, namely the emergency of COVID-19," he said in a written statement.

According to Jumisih, the circular regarding the THR was also a threat to workers. This is because this circular does not pay attention to their difficult situation and bargaining position. In fact, this circular can be an opening for companies not to pay their obligations.

The reason is, this circular letter seems to equate the financial situation between one company and another. "In fact, this COVID situation cannot necessarily be called a force majeure or force majeure because it has to be seen in the case of cases or the ability and condition of the company," he said.

Jumisih also said that this letter contradicts Government Regulation (PP) Number 78 of 2015 Article 7 which contains the obligation to provide THR to workers or workers from companies and this allowance must be paid no later than seven days before religious holidays.

"This means that the THR must be paid at once," he concluded.