Airlangga University labour expert Hadi Subhan said the new policy, which was designed to assist companies struggling financially as a result of the Covid-19 outbreak, might instead encourage"stowaways": businesses that were fully capable of paying the THR but chose not to.
The company would need to be transparent about its financial condition and hold employer-employee dialogues to reach an agreement, which would then be reported to local manpower agencies, the circular said. Confederation of Indonesian Trade Unions president Said Iqbal objected to the new policy, saying that the option to defer should only be given to small and medium enterprises.
“We must reject the ministry’s circular. Employers must provide 100 percent of their employees’ holiday bonuses. Providing less than full holiday compensation or releasing the funds in installments is simply out of the question,” Said Iqbal said in a statement on Thursday. The contradictions between the circular and prevailing regulations, he said, were because the previous policies were not made for “emergency situations”, and thus new guidelines were needed. He said the deferral would allow companies to pay expenses, such as wages, electricity and taxes, to stay in operation during the pandemic.
Law Law Latest News, Law Law Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: fmtoday - 🏆 5. / 72 Read more »