Dismissal has to be the last resort -- only if all efforts have been made, but there is no improvement in the business.
Jakarta (ANTARA) - Indonesia's Manpower Minister Ida Fauziyah has issued Ministerial Decree Number 104/2021 on Guidelines for Managing Work Relationships During the COVID-19 Pandemic.

The pandemic is a common problem for the government, employers, and workers. Therefore, handling its impact requires commitment and cooperation from all parties, she said in an official statement received here on Monday.

"We want to emphasize the importance of social dialogue through this decree. We expect all parties to be completely protected from the impacts of this pandemic," she added.

According to Director General for the Development of Industrial Relations and Workers' Social Security Insurance Indah Anggoro Putri, the regulation signed on August 13, 2021 covers the implementation of the work from home (WFH) and work from office (WFO) system as well as the provision of wages and other workers' rights.

The regulation will ensure that workers working from home still get their salary, she said. Meanwhile, the ones working from office will get their working hours and days adjusted, she informed.

"Working hours have to be arranged well and given to employees who are healthy. Meanwhile, pregnant women and workers who are prone to illness should work from home," she said.

Furthermore, the decree also demands that companies pay the wages of workers who have been forced to be laid off due to the pandemic, the director general said.

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However, if the companies are unable to pay the full wages, they can make an adjustment agreement with the workers, she informed.

Meanwhile, the workers' social insurance, severance pay, and other rights have to refer to the amount before adjustment, she added.

Moreover, the decree also regulates the prevention of employment termination, she informed. Layoffs are only allowed if the pandemic greatly affects the sustainability of a business, proven by the company's financial statements, Putri said.

"Dismissal has to be the last resort -- only if all efforts have been made, but there is no improvement in the business. However, it has to be a joint decision between the employers and workers," she stated.

In addition, the termination discussion is also expected to involve the local Manpower Office, she added.

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Translator: Prisca Violleta, Uyu Liman
Editor: Rahmad Nasution
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