Ada Pertanyaan? Hubungi Kami 
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Ada Pertanyaan? Hubungi Kami Nadia Maharani, Ady Thea
Workers are currently returning to the capital from their hometowns ready to start work again after celebrating Lebaran, the local name for the Islamic holiday of Eid Mubarak. The Islamic holiday remains in the spotlight however as the government has revealed that it has received 51 reports accusing various companies of violating their employees’ right to receive the traditional and legally mandated annual holiday bonus known as THR (tunjangan hari raya).Responding to the report, the Ministry of Employment has stated that it will announce the names of the companies that allegedly violated the mandatory THR rule this year, and has also revealed that it will levy various administrative fines and social sanctions upon the offending companies.
“I have ordered the Director General of Industrial Relations Development (PHI) to announce the names of the offending companies to the public,” Indonesia’s Minister of Employment, Hanif Dhakiri, recently explained.
Violations committed by these companies include insufficient THR payments, as well as failure to pay employees any THR bonuses at all. Minister Dhakiri also explained that several companies replaced THR payments with goods or beverages that only amounted to 25% of the value of the mandated bonus. This type of payment is also in violation of Ministry of Labor Regulation No. 4 of 1994 on Religious Holiday Allowances for Employees.
Minister Dhakiri is hoping to delay the provision of licensing services to companies that have violated the THR regulation by sending letters to the relevant licensing institutions. According to the minister, such administrative sanctions are necessary, despite the country’s Labor Law lacking clarity with regard to sanctions for THR violators.
“We will write to the relevant institutions in order to delay services to companies that are in violation by not paying THR bonuses. That is all we are able to do at the moment, as the 2003 Labor Law does not specify a stricter punishment,” Minister Dhakiri stated.
Sahat Sinurat, Director of Industrial Relations Dispute Prevention and Settlement (PPHI), has emphasized that all employers must pay THR bonuses to their employees. Employees that have worked at a given company for more than three months but less than a year are also entitled to receive the bonus after a prorate calculation, while employees that have worked at a company for over a year are entitled to a THR bonus amounting to one month’s salary.
Mr. Sinurat explained that previously there were specific criminal sanctions for violating THR provisions, as stipulated under Law No. 14 of 1969 on Primary Provisions of Labor. This law, however, was repealed and replaced with the 2003 Labor Law.
Said Iqbal, President of Indonesian Labor Union Confederation (KSPI), is fully supportive of the Ministry’s plan to announce the names of offending companies to the public. However he has asserted that such a strategy has to be followed up with serious sanctions in order to avoid history repeating itself.
“Sanctions, both civil and criminal, are imperative. One of the penalties that can be imposed is license revocation,” suggested Mr. Iqbal.
(hot/ja/sp)
Nadia Maharani, Ady Thea
Workers are currently returning to the capital from their hometowns ready to start work again after celebrating Lebaran, the local name for the Islamic holiday of Eid Mubarak. The Islamic holiday remains in the spotlight however as the government has revealed that it has received 51 reports accusing various companies of violating their employees’ right to receive the traditional and legally mandated annual holiday bonus known as THR (tunjangan hari raya).Responding to the report, the Ministry of Employment has stated that it will announce the names of the companies that allegedly violated the mandatory THR rule this year, and has also revealed that it will levy various administrative fines and social sanctions upon the offending companies.
“I have ordered the Director General of Industrial Relations Development (PHI) to announce the names of the offending companies to the public,” Indonesia’s Minister of Employment, Hanif Dhakiri, recently explained.
Violations committed by these companies include insufficient THR payments, as well as failure to pay employees any THR bonuses at all. Minister Dhakiri also explained that several companies replaced THR payments with goods or beverages that only amounted to 25% of the value of the mandated bonus. This type of payment is also in violation of Ministry of Labor Regulation No. 4 of 1994 on Religious Holiday Allowances for Employees.
Minister Dhakiri is hoping to delay the provision of licensing services to companies that have violated the THR regulation by sending letters to the relevant licensing institutions. According to the minister, such administrative sanctions are necessary, despite the country’s Labor Law lacking clarity with regard to sanctions for THR violators.
“We will write to the relevant institutions in order to delay services to companies that are in violation by not paying THR bonuses. That is all we are able to do at the moment, as the 2003 Labor Law does not specify a stricter punishment,” Minister Dhakiri stated.
Sahat Sinurat, Director of Industrial Relations Dispute Prevention and Settlement (PPHI), has emphasized that all employers must pay THR bonuses to their employees. Employees that have worked at a given company for more than three months but less than a year are also entitled to receive the bonus after a prorate calculation, while employees that have worked at a company for over a year are entitled to a THR bonus amounting to one month’s salary.
Mr. Sinurat explained that previously there were specific criminal sanctions for violating THR provisions, as stipulated under Law No. 14 of 1969 on Primary Provisions of Labor. This law, however, was repealed and replaced with the 2003 Labor Law.
Said Iqbal, President of Indonesian Labor Union Confederation (KSPI), is fully supportive of the Ministry’s plan to announce the names of offending companies to the public. However he has asserted that such a strategy has to be followed up with serious sanctions in order to avoid history repeating itself.
“Sanctions, both civil and criminal, are imperative. One of the penalties that can be imposed is license revocation,” suggested Mr. Iqbal.
(hot/ja/sp)