GoTo, like other large companies, needs to adapt to ensure the company's readiness to face the challenges ahead
Jakarta (ANTARA) - PT GoTo Gojek Tokopedia Tbk’s management is trying to ensure that the employees affected by employment termination (PHK) are compensated as per the laws and regulations in the countries where GoTo operates, besides receiving financial support.

GoTo Group CEO Andre Soelistyo said that the financial support includes an additional month's salary as well as compensation in lieu of the notice period.

The company also provided job search support as well as counseling services, he informed in a statement issued on Sunday.

Employees who have been laid off can also keep the laptops they are currently using, access various training programs, and join the GoTo alumni directory, where companies provide recommendations to companies in the GoTo Group's network of business partners.

In addition, GoTo will also provide career, financial, and psychological counseling facilities to them until the end of May 2023.

GoTo decided to lay off 1,300 employees or around 12 percent of its total permanent staff to support measures to carry out cost efficiencies, Soelistyo said.

The tough decision was made by the management because global macroeconomic challenges have had a significant impact on businesses around the world, he added.

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Thus, companies need to accelerate efforts to become financially independent and grow sustainably in the long term.

"GoTo, like other large companies, needs to adapt to ensure the company's readiness to face the challenges ahead," he said.

Responding to GoTo's move, an economist at the Institute for Development of Economics and Finance (Indef), Izzudin Al Farras Adha, said that the compensation provided by GoTo to employees affected by layoffs in accordance with the applicable laws, and even higher than the applicable provisions.

According to him, the benefits above the law have been implemented by GoTo as a form of appreciation for the workers’ contributions during their employment.

He described the counseling on career, finance, and psychology included in the GoTo compensation package as very humane. This is because when workers are laid off, they may not find it easy to come to terms with the job loss from a psychological perspective.

"With these benefits, it means that the company has concerns not only about financial aspects but also non-financial aspects," he said.

A similar sentiment was expressed by human resources (HR) practitioner Randika Sulistyo. According to him, it is rare for companies to provide counseling services to employees affected by layoffs.

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"Just for compliance with the statutory obligations, there are still many companies that have not been able to comply. So what GoTo is doing needs to be appreciated. Even office inventory such as laptops are being given,” he said.

In terms of financial benefits, what GoTo is providing to employees affected by layoffs is very good, he added. According to him, if a company can fulfill its obligations to employees in accordance with the existing government regulations, the benefits received by employees would be quite large. Further, GoTo can provide more than what has been determined by the government.

Based on Government Regulation (PP) No. 35 of 2020, employees with less than 1 year of service are required to receive 1 month's wage; those employed for 2 to 3 years need to get 3 months’ wages; and those who have worked for a period of 8 years or more need to get 9 months’ wages. Meanwhile, GoTo is providing up to 14 months' wages to workers who have spent over 9 years at the company.

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Translator: Faisal Y, Azis Kurmala
Editor: Fardah Assegaf
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