DECREE OF THE MINISTER OF MANPOWER AND TRANSMIGRATION
NO. KEP-111/MEN/2001 DATED MAY 31, 2001
THE AMENDMENT TO ARTICLE 35A OF THE DECREE OF THE
MINISTER OF MANPOWER AND TRANSMIGRATION NO. KEP-78/MEN/2001
ON THE AMENDMENT TO SEVERAL ARTICLES OF THE
DECREE OF THE MINISTER OF MANPOWER NO. KEP-150/MEN/2000
CONCERNING THE SETTLEMENT OF LABOUR DISMISSAL AND THE STIPULATION
OF SEVERANCE PAY, GRATUITY AND COMPENSATIONS IN COMPANIES
THE MINISTER OF MANPOWER AND TRANSMIGRATION
Considering :
a.
that since Article 35A of the Decree of the Minister of Manpower and Transmigration No.
78/MEN/2001 on the amendment to several articles of the Decree of the Minister of Manpower No.
KEP-150/MEN/2000 concerning the settlement of labour dismissal and the stipulation of severance pay, gratuity
and compensations in companies needs improvement in its implementation, Article 35A of the Decree of the
Minister of Manpower and Transmigration No. KEP-78/MEN/2001 need to be amended;
b.
that based on the consideration as meant in letter a, it is necessary to stipulate a decree of the Minister of
Manpower and Transmigration.
In view of :
1.
Law No. 22/1957 on the settlement of labour disputes (Statute Book of 1957 No. 42, Supplement to Statute
Book No. 1227);
2.
Law No. 12/1964 on the dismissal of labour in private companies (Statute Book of 1964 No. 93,
Supplement to Statute Book No. 2686);
3.
Presidential Decree No. 234/M/2000;
4.
Decree of the Minister of Manpower No. KEP-150/MEN/2000 on the settlement of labour dismissal and the
stipulation of severance pay, gratuity and compensations in companies;
5.
Decree of the Minister of Manpower and Transmigration No. KEP-78/MEN/2001 on the amendment to
several articles of the Decree of the Minister of Manpower No. KEP-150/MEN/2000 concerning the
settlement of labour dismissal and the stipulation of severance pay, gratuity and compensations in
companies;
DECIDES :
To stipulate :
THE AMENDMENT TO ARTICLE 35a OF THE DECREE OF THE MINISTER OF MANPOWER AND
TRANSMIGRATION NO. KEP-78/MEN/2001 ON THE AMENDMENT TO SEVERAL ARTICLES OF THE
DECREE OF THE MINISTER OF MANPOWER NO. KEP-150/MEN/2000 CONCERNING THE
SETTLEMENT OF LABOUR DISMISSAL AND THE STIPULATION OF SEVERANCE PAY, GRATUITY
AND COMPENSATION IN COMPANIES.
Article I
KEP-150/MEN/2000 on the settlement of labour dismissal and the stipulation of severance pay, gratuity and
compensations in companies is amended so as to entirely read as follows :
"Article 35A
In the case of working contracts or corporate rules or collective labour commitments stipulating
provisions on the granting of severance pay, gratuity and compensations with the amount being higher than the
provision in the Decree of the Minister of Manpower No. KEP-150/MEN/2000, the provisions in the working
contracts or corporate rules or collective labour commitments shall remain effective."
Article II
This decree of the Minister of Manpower and Transmigration shall come into force as from May 31,
2001.
Stipulated in Jakarta
On May 31, 2001
THE MINISTER OF MANPOWER AND TRANSMIGRATION
sgd.
PRINCIPLES OF AMENDMENTS ACCORDING TO DECREE OF THE MINISTER OF MANPOWER NO. KEP-150/MEN/2000, DECREE OF THE MINISTER OF MANPOWER AND TRANSMIGRATION
NO. KEP-78/MEN/2001 AND DECREE OF THE MINISTER OF MANPOWER AND TRANSMIGRATION NO. KEP-111/MEN/2001
NO. KEP-150/MEN/2000 NO. KEP-78/MEN/2001 NO. KEP-111/MEN/2001
Article 15 (1) Article 15
(1) In the case of workers/labour being absent from working for at least 5 (five) days without written evidence, employers can process labor dismissal
(1) In the case of workers/labour being absent from working for at least 5 (five) days without written evidence, the workers/labor are considered to resign improperly and labor dismissal can be processed
………
(2) In the case of the workers/labor being absent because of staging labour strikes in accordance with laws in force, the workers/labour can not be declared absent.
(2) Unchanged
(3) In the case of the workers/labour being absent because of staging labor strikes which are not in accordance with laws in force, the workers/labour shall be declared absent.
Article 16 Article 16
Employers can suspend
workers/labour from their jobs in accordance with the provision on suspension from jobs already stipulated in working contracts or corporate rules or collective labour agreements.
Employers can suspend
workers/labour from their jobs in the case of the provisions on suspension from job being already stipulated in working contracts or corporate rules or collective labour commitments.
………
Regional committees/the central committee stipulate wages of workers/labour after the six-month suspension period ends.
Employers are not obliged to pay wages of workers/labour after the six-month expansion period ends, unless otherwise stipulated by regional committees or the central committee.
Article18 Article 17A
In the case of the occurrence of labour dismissal because workers/labour commit serious mistakes but employers submit no application for licenses to dismiss workers/labour, before a decision of regional committees/the central committee having permanent legal power is available, wages of workers/labour are paid as high as 100% (one hundred percent)
In the case of the occurrence of labour dismissal but employers submit no applications for licenses to dismiss workers/labour as meant in Article 2 paragraph (1) and the dismissal causes a dispute, before the issuance of decisions by regional committees or the central committee, wages of workers/labour are paid as high as 100% (one hundred percent).
during the process.
Article 18 Article 18
(3) Suspension can be applied to workers/ labour committing serious mistakes, before regional
committees or the central committee issue licenses to dismiss workers/labour
(3) Suspension is applicable to workers/labour committing serious mistakes before regional
committees or the central committee issue licenses to dismiss workers/labour with the provision that the labour dismissal has been regulated in working contracts or corporate rules or collective labour commitments.
………
(4) Workers/labour dismissed because of serious mistakes :
(4) Workers/labour dismissed because of serious mistakes :
………
a. are not entitled to severance pay a. are not entitled to severance pay
b. are entitled to gratuity b. are not entitled to gratuity
c. are entitled to compensations c. are entitled to compensations
Article 26 Article 26
Workers resigning properly obtain gratuity and compensations in accordance with the provisions in Articles 23 and 24 of Decree of the Minister of Manpower No. KEP-150/MEN/2000
(1) Workers/labour resigning properly obtain no gratuity but receive compensation.
………
(2) Requirements for proper resignation :
a. written applications are submitted 30 (thirty) days previously
b. workers/labour continue to work up to the resignation
c.
workers/labour are not in-service commitments
(3) Employers must respond to the applications in 14 (fourteen) days, in the case of no response, the applications are considered acceptable.
Article 26A
……… Employers and representatives of
workers/worker unions can limit the number of workers/labour which can resign properly in a certain period.
………
Article 31 Article 31
(1) Workers/labour facing labour dismissal because they enter the mandatory age of retirement and participate in pension programs :
(1) Workers/labour facing labour dismissal because they reach the mandatory age of retirement and participate in pension programs :
………
- are not entitled to severance pay - are not entitled to severance pay
- are not entitled to gratuity - are not entitled to gratuity
- are not entitled to compensations (All compensations in Article 24)
housing, medical service and treatment ( Article 24 letter d)
(2) If pension benefit/insurance is smaller than twice severance pay, gratuity and compensations, and compensations, especially for compensations for housing, medical service and treatment (Article 24), the differences are paid by employers.
(3) Workers/labour facing labour dismissal because they reach the mandatory age of retirement obtain severance pay twice, gratuity once and compensation once.
Article 32 A
……… (1) Gratuity is not given to
workers/labour facing labour dismissal if the workers/labour join pension programs
………
(2) In the case of the amount of pension benefit being smaller than gratuity, the difference is paid by employers
Article 35 A Article 35 A
……… If working contracts or corporate
rules or collective labour
agreements stipulate the granting of severance pay, gratuity and compensations on the basis of the Decree of the Minister of
manpower No.
KEP-150/MEN/2000, the stipulation of severance pay, gratuity and compensations must be
automatically based on this decree as from the date of its
enforcement.
In the case of working contracts or corporate rules or collective labour commitments containing provisions on the granting of severance pay, gratuity and compensations with their amounts exceeding the provision in Decree of the Minister of Manpower and Transmigration No. KEP-78/MEN/2001, the provisions in the working contracts or corporate rules or collective labour commitments remain effective.
