YOGYAKARTA - Government Regulation of Substitution of Law (Perppu) Number 2 of 2022 concerning Job Creation (Perppu Cipta Kerja) controls the amount of severance received by employees whose work is cut off or laid off. Let's discuss the amount of layoff severance pay at the Job Creation Perppu!
In that regulation, the maximum amount of severance pay is 9 times the fee. The severance pay received by the employee is limited to Article 156 paragraph (1) of the Job Creation Perppu.
"In the event of a termination of employment, employers must pay severance pay and/or award money for the period of work and rights replacement money that must be received," the article said.
The severance pay regulation is controlled in article 40 in the PP which contains if there are layoffs, therefore employers must pay severance pay and service awards as well as rights replacement money that must be received.
According to Article 40 paragraph (2) of PP Number 35 of 2021, the following is the calculation of severance pay for layoff victims:
What are the requirements?
Then, in Article 43 it is restricted, that companies or employers can reduce the amount of severance pay that should be paid to workers, if the company carries out efficiency caused by company losses, the company closes and experiences losses, the company goes out of business.
If they meet these requirements, the company is therefore allowed by the government to provide severance pay of half or 0.5 times the amount of severance pay. However, workers can receive an additional fee of service awards of 1 time from a decree.
So after knowing the severance pay for layoffs at the Job Creation Perppu, see other interesting news on VOI, it's time to revolutionize news!
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