Minister Of Manpower: Job Loss Guarantee Does Not Cancel Severance Pay For Lay-off Workers

Minister of Manpower Ida Fauziyah/PHOTO VIA ANTARA

JAKARTA - The Minister of Manpower (Menaker) Ida Fauziyah ensured that the Job Loss Guarantee (JKP) is a form of state presence to protect workers affected by termination of employment (PHK) and does not eliminate the obligation to pay severance pay.

The Minister of Manpower, Ida, said that JKP did not cancel the employer's obligation to provide severance pay to workers affected by layoffs. The program also cannot be an excuse for arbitrary layoffs.

"Just because there was a JKP program, then layoffs were carried out. I really hope that layoffs are the last option," said the Minister of Manpower after having a dialogue with the beneficiaries of the JKP program at the Job Market Center building, Jakarta, as reported by Antara, Thursday, March 10.

In the dialogue, Ida explained that the JKP program does not impose new contributions to workers, because the JKP program funds come from government contributions. The government has submitted initial funds for the program amounting to Rp. 6 trillion and Rp. 823 billion to BPJS Ketenagakerjaan.

For workers who are participants in the JKP program and when in the future experience layoffs, they are entitled to three benefits, namely cash, access to job market information and participating in job training.

"We, the government, want to reduce the anxiety of friends who have experienced layoffs with the Job Loss Guarantee program," said Ida. The JKP program is a social cushion for workers affected by layoffs who will receive cash assistance, job market information and training.

The three conditions to receive the JKP program are BPJS Employment participants who have been laid off, both for work relationships based on work agreements for an indefinite time or work agreements for a certain time. The second is BPJS Ketenagakerjaan participants who have a contribution period of at least 12 months in 24 months and have paid contributions for at least six consecutive months before the layoff occurs. The third condition, JKP is given to BPJS Ketenagakerjaan participants who wish to work again.