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Is a Company Allowed to Give a Break to Employees Unilaterally

Is a company allowed to give a break to employees unilaterally (according to the Indonesian law)? Yes, as long as there is an obvious reason.

When a range of legal matters concerning the workers’ leaves becomes the public’s focus of attention, some queries frequently pop up – and one of them would be “is a company allowed to give a break to employees unilaterally (according to the Indonesian law)?”.

For some particular reasons, employers have full competence to give time off of work to their employees. The causes can be varied depending on circumstance such as the decline of work ethic, suffering from an infectious disease threatening the health of other workers, and so on.

How Such Condition is Regulated in the Indonesian Law

Is a Company Allowed to Give a Break to Employees Unilaterally

As we obviously know that all the things in relation to the employees’ leaves in Indonesia from annual holiday pay to maternity leave are evidently stipulated in the Indonesian Law concerning manpower number 12 of 2003.



The term of giving a break to the workers carried out by a company doesn’t immediately signify in the formal regulation. The basis why the local government had yet to create a concrete law with respect to it in the past remains indistinct. Conceivably, the case appearing in the surface was overly infrequent.



However, the official form letter (it’s known as surat edaran in Bahasa) from the ministry of manpower of Indonesia with reference to termination of employment addressed to both the heads and managers of all corporations across Indonesia, tells something different.



It highlights giving the time off of work pointed to the working people without any notification. Unlike the general leaves coming with the exact provision about the total number of the days off, 12 days for annual leave and 3 days for marriage leave, for instance, the holidays of the resting workers are completely based on the employer’s decision.



Based on the specified order better known as SE Menaker 907/2004 number SE-907/MEN/PHI-PPHI/X/2004, a company comes with a full decision to dismiss the employees for a while or a contemporary period early determined.



The related employer usually lets the individuals that labor for the industry stays at home. True to a multitude of occurrences and states of the affair often taking place throughout big cities in Indonesia, the people go with two possibilities – either to get back to work or to call it a day.



Reference: Interesting facts concering the annual leave of employees




The Main Concerns Why the Employees are “Forced” to Leave their Job and Take a Rest at Home Instead

Is a Company Allowed to Give a Break to Employees Unilaterally

As mentioned before, there are a couple of causes why the employees should leave their duties at the office and take a load off instead. When it comes to stabilizing as well as strengthening the business, some companies usually push the expenditure and another spending by not employing some workers.



This type of way, proven to be highly effective, is actually performed by businesses going through an economic crisis. Once the debt endured by companies is inevitable, there is no way better other than keeping away even eliminating the causative factor.



Besides the major motivation why the company makes the individuals working hard take some rest at home is nothing else but the health problem. In substance, it indicates a communicable disease that easily spreads letting others get infected.



The list, as the California Department of Public Health has issued, includes tuberculosis, flu, measles, hepatitis A and B, and not to mention pertussis known as a whooping cough. The decision has to be made for the further anticipation and right prevention.



Another factor could be the decline of the industrial spirit of the workers hampering their work performance at the office. Generally speaking, the passion embraces deep feelings of well-being, a sense of being connected to other people, an impetus to achieve some goals in life, and many others that affect the people’s mentality.



The purpose of giving a break a little while is to evaluate the employees, whether they get some significant improvement or on the contrary. Unless the progress is good, the evil possibility that they will experience, without more ado, is dismissal.



As a matter of fact, the effort that the corporation has taken so far to diminish the outlay doesn’t break the guideline. In this case, it refers to a regulation issued by the local administration. In addition to that, the rights to give a particular leave to the workers – although it’s not stated in the law of labor force of Indonesia – has pretty strong legal standing.



The surat edaran or form letter becoming the standardized statement of certain occurring matters is the true evidence to do so. Hence, why not for getting the most out of this if your company experiences the economic uncertainty.






Are the Employees Taking Some Rest at Home still Paid?

Is a Company Allowed to Give a Break to Employees Unilaterally

Some of you who have yet to undergo this kind of condition might go with an elementary question which is “do those leaving their job and staying at home remain getting some payment just like the rests of leaves?” The best answer for this can be perplexing to some parties.



How the salary supplied per month goes is normally arranged by the related companies. Some are provided while the rests are not. As we know that each business has very own rules and regulations as well. However, a key not is that the laborers are accessible to enjoy another privilege beyond the pay by the month.



Speaking of a special privilege, instead of earning the monthly salary (commonly applicable to the active laborers), the resting employees have a right to get THR. It basically stands for Tunjangan Hari Raya Keagamaan. The literal meaning of it is a religious holiday allowance.



Although the model of payment is uncommon in the western part of the global hemisphere, it’s widely practiced across the country. It is subjected to something mandatory so that each can benefit their hard work after a long period of time.



Despite the truth that you don’t get familiar with THR, you must be clued in the special allowance of the worker, mustn’t you?  As its name suggests, it is monthly wage given on a special occasion mainly dealing with the religious celebration of Islam – it’s handed on Christmas and other religious festivities though.



As a nation with the largest Muslim population, the payment presented to the employees, matters that much. At the bottom, it’s the form of appreciation for the good work. Tunjangan Hari Raya Keagamaan is usually delivered to them a week before the Eid day comes.



The provision why those who get a break unilaterally performed by their employers is in compliance with the work period (arguably, it is neither a job position nor current health condition of the working people). To make a long story short, such employees fully gain the religious holiday allowance unless with a condition.



The additional payment is available when the working people leaving their duties have worked for the company for at least a year or more. The compensation is also comprised of the monthly wage.






The Responsibility of Employers in regard to Giving the Monthly Payment

Is a Company Allowed to Give a Break to Employees Unilaterally

Not only do the employers reassure their working men with the rest that even doesn’t belong to the paid leave but they should provide some amount of money in the form of religious holiday allowance. Once giving a break to the dedicated employees experiencing misfortune, the manager hiring them should make a clear labor agreement in regard to the basic salary provided with.



Why this kind of planning or prearrangement is made is, in essence, to throw the light the position of the workers on. The indication also shows how the one employing people give some respect.



The first agreement expresses that the business entity keeps providing full salary to the employees. It should be comprised of basic wage and fixed allowance. The monthly payment is on hand during the period of the break. The further details with respect to how the compensation is provided are based on the accord by way of a letter of work agreement, corporation’s regulation, and not to mention the joint work contract. They can be highly associated with the exact amount of cash and other important specifications.



What about the second one? It turns out that it specifies a rule concerning the half payment offered by the company. To reach an accord between two parties, it is vital that they carefully take up as well as deliberate the provision in the agreement. The objective of this is to guarantee that that misunderstanding possible to happen can be well anticipated.



In some cases, the unexpected problem even gets bigger when misconception is found to be hard to settle down. The ground why it comes about is possibly caused by an array of trivial matters. As a wise employer, of course, you don’t want to let the issue continue, do you?






Can the Employees Take a Legal Action if the Religious Holiday Allowance is Not Fully Received?

Is a Company Allowed to Give a Break to Employees Unilaterally

Being asked to leave the job to stay at home instead whilst you are seeking out the future investment might be a stroke of bad luck to some people. And everything seems to deteriorate subsequent to knowing the truth that the employer of yours doesn’t provide a complete religious holiday allowance that basically is your right.


Once it comes into sight leading to a couple of economic issues, there is no finer step other than negotiating this case to the business. Just see whether the one hiring you has a good will or not. The approach to put an end the matter is through bipartite settlement.


Unless the early step can be achieved, the mediation of industrial relation might be considered the best. If your matter in requesting the basic right of yours still finds the failure, you are capable of taking legal action. The step having a tight connection with the Indonesian law is nothing but quite simple.


You need to get in touch with the employee inspector from the ministry of manpower. This sort will eventually involve the PHI (Pengadilan Hubungan Industrial). It literally means the court of industrial relation.


Some might wonder why the legal measure should be carried since it can be solved as a family matter. On the other hand, it is known as something appropriate due to the immediate loss bringing out some disadvantages to the related employees.


Can’t you imagine how your hard work in a month is not appreciated? All we can say is that the problem appears to be serious. This could be a valuable lesson for the whole employers so that they can’t take it lightly and get wrong about.





Is Giving the Religious Holiday Allowance to Those Getting a Break at Home from the Unilateral Decision Stipulated in the Indonesian Law?


Is a Company Allowed to Give a Break to Employees Unilaterally

Since the presence of religious holiday allowance that is better known as THR is frequently highlighted in the society, a platform to cover the legal matter with regard to protecting the workers is finally made as something mandatory. To put it in a nutshell, the religious holiday allowance is carefully regulated in the Indonesian law of manpower number 6 that is issued on the 8th of March, 2016. The consideration in relation to the rule includes some significant points.



The first regard is about the importance of the religious holiday celebration in the Indonesian society. It is such as annual occasion deserving to commemorate. The second provision claims that the Indonesian workers are in need of additional cost when it comes to celebrating the festivity.



Not only is it about the expense required whilst in the joy and merriment but the law also imposes that the employers should provide the religious holiday allowance to the people that work. Other considerations are in connection with the role of manpower ministry in determining the allowance given every year.



What about the eligibility when it comes to the regular workers?  According to the Indonesian law in regard to the labor force, a company has an obligation to pay its employees with the religious holiday allowance once their work period reaches one year.


It also stipulates that workers, unfortunately, going through the work termination in the period of 30 days before festivity still have a right to benefit the THR. Something that is ineligible refers to a work contract already terminated before the religious holiday.


How does the payment of religious holiday allowance or THR go? In terms of how many times that the employers should hand the compensation, it’s already clear that it only takes place once in a year specifically seven days before the religious festivity according to the employees’ religion.


If the period of THR payment suddenly changes – in case, there is an event unexpected; the time will be based on the agreement between two parties. Is it given for all of the types of religious celebration? No, it’s only the big one; Eid al-Fitr for Muslim, Christmas for Christian and Catholic, Nyepi for Hindu, Vesak for Buddhist, and Imlek for Confucianism.

If the Employees are “Pushed” to Leave their Job Because of Certain Illness; thus, Is It as Same as the Paid Sick Leave?


No, it’s absolutely not. The paid sick leave and being given a break for particular health reason are arguably two different things. The first category comes with obvious intention and awareness of the workers under the weather. In line with those who take full advantage of maternity and paternity leave, the employees seriously feeling unwell is able to take an opportunity of applying for the paid sick leave. This condition is portrayed contrarily to leaving duties at the office due to an illness as specified by the unilateral decision made by employers. This time, you have no chance for the leave application.



When the individuals terribly experience that kind of misfortune, be it an injury or sickness, they are capable of taking a rest for the determined period of time and enjoying the payment whilst in the holiday – that’s a clear benefit that the first sort can have. Unlike them, those belonging to the second category stay in vague condition.



Why it’s called something indistinct since the payment for treatment can be possibly handed or with an empty hand. The procedure for the first sort to obtain the sick leave fully paid is nothing but apparent and understandable as well. Simply have a go with a medical statement from a trusted doctor.



In addition to the written statement from a competent practitioner of medicine, there also comes with some consideration to be conceived. The first kind is arranged in a specific regulation with the details such as the pay calculation of 100 percent for the first four months and 75 percent for the period of two months. Meanwhile, the second one has no certain rule. It is on the authority of the owner of the business.


So, “is a company allowed to give a break to employees unilaterally (according to the Indonesian law)?” Yes, for sure. It is already clarified in the form letter issued by the ministry of manpower of Indonesia. To conclude all the elucidation, there must be a significant difference between this break and other paid leaves.





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