You Must Know, This Is The Right Of Resigning Employees According To Law

Employee Rights to Resign (Marten Bjork - Unsplash)

YOGYAKARTA - Employees' Right to Resign Under the Labor Law - Is it true that employees who resign do not receive severance pay and long service pay, unlike employees who are terminated by the company?

If referring to the Labor Law or changes to its articles through the Job Creation Law, including its derivative regulations in Government Regulation No. 35 of 2021, there are two explanations regarding the right of employees to resign.

First, permanent employees (PKWTT) who resign of their own free will do not have the right to severance pay, but do have the right to severance pay. Second, contract employees (PKWT) who resign receive "severance pay" in the form of compensation money.

Let's discuss the differences according to the latest labor law provisions in the Job Creation Law and PP No. 35 of 2021.

Employee Rights to Resign

Resignation or termination of employees by the company is a form of termination of employment (PHK) in PKWTT.

However, the rights of employees who appear upon the completion of the employment relationship are not the same.

Employees who are terminated by the company have the right to severance pay and gratuity pay. On the other hand, employees who quit due to resignation do not have the right to both types of compensation.

Employees who resign must fulfill three requirements in the Job Creation Law No. 11 of 2020, Article 81 Number 42 regarding the insertion of Article 154A paragraph (1) letter i of the Manpower Law, namely:

1. apply for resignation in writing no later than 30 days before the start date of resignation
2. not bound by official ties
3. continue to carry out obligations until the starting date of resignation

If resignation meets these three requirements, according to Article 50 PP No. 35 of 2021, resigning employees have the right to compensation money and separation money.

Compensation money, namely money paid by the company to employees as a substitute or substitute for:

1. annual leave that has not been taken and has not fallen;
2. costs or fees for returning workers/laborers and their families to the place where workers/laborers are received to work; And
3. other matters stipulated in work agreements, company regulations, or collective labor agreements.

Although severance pay is controlled in work agreements, company rules, or collective labor agreements.

Determination of the amount of separation money is a component of each company's policy.

The problem is, many companies do not apply regulations regarding severance pay and tend to overrule the rights of resigning employees.

How about like this?

According to several decisions of the Industrial Relations Court (PHI) in cases of employee claims over severance pay, the absence of company regulations regarding severance pay does not mean that the company has to pay the employee's rights.

Simply put, whether or not it is limited by the company, a permanent separation pay is an employee's right that should be paid if you resign.

For companies that do not limit retirement payments in work agreements or company regulations, the amount of separation pay is calculated the same as the amount of long service pay (UPMK) in Article 40 PP No. 35 of 2021.

For example, if an employee who resigns has worked for the company for 15 years, he is entitled to a severance pay of 6 months' wages.

The right of contract employees to resign

The new stipulation that the Job Creation Law brings into the Manpower Law is compensation money for PKWT workers. This stipulation was inserted into Article 61A and then inherited again into PP No. 35 of 2021.

Compensation money must be given to employees at the end of the PKWT contract period and also at the completion of the PKWT extension. The amount is calculated according to the length of service in the company concerned.

Now, what needs to be noted, Article 17 stipulates that compensation money must also be given to employees in the event of termination of employment before the contract is completed. So, PKWT employees who resign also have the right to resign compensation money.

The calculation of PKWT compensation money uses the following proportional formula, namely: years of service/12 x 1 month of pay.

For example, a 1-year PKWT contract employee resigns in the 7th month, meaning his working period is 6 months. He has the right to compensation of 1/2 times a month's salary.

This new stipulation removes the old PKWT rules which require the payment of compensation by the party that terminates the employment relationship with the other party.

So after knowing the rights of employees to resign, check out other interesting news on VOI, it's time to revolutionize the news!