Agus Sahbani, Robert Sidauruk
The Government has put forward the view that Article 95(4) of Law No. 13 of 2003 on Labor (Labor Law) provides sufficient legal certainty and a sufficient basis for workers to be able to receive their legal entitlements in the event that their employee company goes bankrupt or is liquidated.
This view was delivered by Irianto Simbolon, Director General of Industrial Relations and Manpower and Social Security during judicial review proceeding on Article 95(4) of the Labor Law at the Constitutional Court on Wednesday.
“If this judicial review is permitted, this will lead to a legal uncertainty by endorsing multiple interpretations of the Article,” says Irianto, who is representing the Government.
The judicial petition itself was filed by nine employees of PT Pertamina, a state-owned enterprise (BUMN), namely Otto Geo Diwara Purba, Syamsul Bahri Hasibuan, Eiman, Robby Prijatmodjo, Macky Ricky Avianto, Yuli Santoso, Joni Nazarudin, Piere J Wauran, and Maison Des Arnoldi, all members of the Pertamina Workers Union.
According to Otto Geo, the applicant’s legal counsel, his clients will argue that the wording of Article 95 (4) stating “the payment of the enterprise’s workers’ wages shall take priority…” may violate worker’s rights if a company is declared bankrupt by the by Commercial Court.
This Article, Otto continued, puts employees in a vague and vulnerable position in securing their rights to payment of wages and other entitlements. The Article impliedly distinguishes between the position of workers and secured creditors who are in practice more likely to receive debt installment payments.
Irianto also believes there is a discrepancy in the applicant’s pleadings in that the matter brought by the applicants is merely an issue of implementation and not a substantial legal issue.
Moreover, Irianto explained that protection of workers’ right as creditors is provided for under Article 39(2) of Law No. 37 of 2004 on Bankruptcy and Suspension of Obligations for Payment of Debts which prioritizes payments to workers from assets derived from a bankrupt or liquidated company.
“If a company is declared bankrupt by the Court, workers are entitled to their salary in accordance with the Labor Law. The preferential payment order, however, will be determined by the Head of Commercial Court,” explained Irianto.
(hot/kc)
Agus Sahbani, Robert Sidauruk
The Government has put forward the view that Article 95(4) of Law No. 13 of 2003 on Labor (Labor Law) provides sufficient legal certainty and a sufficient basis for workers to be able to receive their legal entitlements in the event that their employee company goes bankrupt or is liquidated.
This view was delivered by Irianto Simbolon, Director General of Industrial Relations and Manpower and Social Security during judicial review proceeding on Article 95(4) of the Labor Law at the Constitutional Court on Wednesday.
“If this judicial review is permitted, this will lead to a legal uncertainty by endorsing multiple interpretations of the Article,” says Irianto, who is representing the Government.
The judicial petition itself was filed by nine employees of PT Pertamina, a state-owned enterprise (BUMN), namely Otto Geo Diwara Purba, Syamsul Bahri Hasibuan, Eiman, Robby Prijatmodjo, Macky Ricky Avianto, Yuli Santoso, Joni Nazarudin, Piere J Wauran, and Maison Des Arnoldi, all members of the Pertamina Workers Union.
According to Otto Geo, the applicant’s legal counsel, his clients will argue that the wording of Article 95 (4) stating “the payment of the enterprise’s workers’ wages shall take priority…” may violate worker’s rights if a company is declared bankrupt by the by Commercial Court.
This Article, Otto continued, puts employees in a vague and vulnerable position in securing their rights to payment of wages and other entitlements. The Article impliedly distinguishes between the position of workers and secured creditors who are in practice more likely to receive debt installment payments.
Irianto also believes there is a discrepancy in the applicant’s pleadings in that the matter brought by the applicants is merely an issue of implementation and not a substantial legal issue.
Moreover, Irianto explained that protection of workers’ right as creditors is provided for under Article 39(2) of Law No. 37 of 2004 on Bankruptcy and Suspension of Obligations for Payment of Debts which prioritizes payments to workers from assets derived from a bankrupt or liquidated company.
“If a company is declared bankrupt by the Court, workers are entitled to their salary in accordance with the Labor Law. The preferential payment order, however, will be determined by the Head of Commercial Court,” explained Irianto.
(hot/kc)