Manpower matters emerge as a complex problem in this global crisis. Termination of employment sometimes is hard to evade. Calculation of severance pay often raises conflict among employer and employee.
The Law No. 13 of 2003 that prevails for the time being stipulates the minimum severance pay that may be paid by a company. However, in practice the employees demand severance pay with an amount higher than the minimum guidance highlighted under the Law. In that regards, strategy and negotiation skill of the employer or the representative are highly required.
Ultimate solution could be obtained if the company is represented by a legal consultant with competency and that is specializing in manpower matters and regulations as well as possessing the ability to handle the negotiation strategy through the good use of the Law No. 13 and the prevailing regulations.
Said, Sudiro & Partners
Indonesian Legal Consultants
Sampoerna Strategic Square
South Tower, Level 18
Jl. Jend. Sudirman Kav. 45 - 46
Jakarta 12930 Indonesia
Phone: (62-21) 575.0983
Fax: (62-21) 575.0803
P.O. BOX 8211 JKS.SB