Employees will not receive severance pay due to termination of employment. This is a very common occurrence, especially in 2020, the year of the arrival of Covid.
“The problem of being laid off can happen at any time. If employees are unaware, they may be taken advantage of by their employers.”
This can be seen from the volume of labor cases, which are increasing and tend to increase each year.
From data for 2018 alone, the number of new cases, combined with the pending cases from 2017, totals almost 25,000 cases. In the past, labor cases might have taken time or there might have been a waiting list for consideration. But now, the work of the Central Labor Court and the Regional Labor Courts is much faster than before. More than 80% of the total cases, around 25,000 cases, have been able to complete 20,942 cases. So don’t worry or be afraid of delays.
The important thing is that if we are taken advantage of, treated unfairly or bullied, we have the right to fight our employers through the labor court process.
In terms of issues or the top 5 charges that were brought up for consideration by the Central Labor Court and the Regional Labor Courts, they were:
- Payment of severance pay in lieu of notice
- Request for compensation
- Requesting payment of wages correctly and on time
- Requesting re-employment or compensation for unfair dismissal
- Request for holiday pay
From the above issues, it can be seen that they are all related to the benefits of the employees. It is believed that the number of labor cases, especially in 2020, will definitely be much higher than last year because of the Covid crisis and the economy, which is a double whammy.
So why did the company terminate the contract and refuse to pay compensation?
Part of it may be due to economic problems, companies need to downsize or have to close down (the company may not have enough money or not want to pay), such as large or small companies that have closed down in large numbers.
Or it may be because the employees themselves do not know the law, so the company finds a loophole here and finds a reason to terminate employees without paying more money more easily.
The latter issue is very important because most workers do not know or understand labor laws, which can lead to companies being deceived and being fired even though they may not have committed a serious offense to the point of being fired.
The matter of labor law
This is another important piece of knowledge that every working person or salaried employee must know because every action we take, every step of work, or life in the workplace has an effect and may be at risk of being taken advantage of by the employer or may be easily fired because of having done something wrong without realizing it.
For example, if you are sick for several days in a row but do not inform your boss or the company, or if you suddenly disappear for several days and cannot be contacted, when you return to work, you may receive a white envelope.
To prevent employees from receiving severance pay due to termination, we must first understand in which cases employers can terminate our employment without the employer having to pay severance pay.
Referring to the guidelines of the Labor Law, according to the Labor Protection Act of 1998, Section 118, it is stipulated that employers do not have to pay compensation to employees in the following cases:
- Case 1: Employees who have worked for the employer for less than 120 days.
- Case 2: Employees who have a fixed employment period and are terminated accordingly. This type of work with a fixed period must be done in writing and has a fixed period. It may be of a temporary nature, such as a contract to hire laborers to build a house. This type of work must be completed within a time limit of no more than 2 years.
For case 1, it can be seen why the probation period must not exceed 120 days. Many companies set it as 119 days, or some as 90 days, etc. The reason for doing this is so that the employer has the right to terminate the employment of the employee during the probation period. If the employer informs the employee that they have not passed the probation period after 120 days, the employer must pay compensation due to the termination. If they do not pay, it is considered an unfair dismissal.
In the second case, it will be a temporary employment with a fixed period. If the company is clever and uses the principle of employment as a temporary contract but hires the same employee continuously for more than 2 years, even though the employment contract is in accordance with the law, in reality, it is a continuous employment. If the employee is terminated unfairly, the employer may also be guilty under the labor law.
In addition, employers are not required to pay compensation to employees when employees commit offences under Section 119 of this Act for the following reasons:
Labor protection laws do not only protect the rights of employees, but also cover employers, especially in cases where the employer has suffered serious damage from the intentional actions of the employee, such as pretending not to finish work on time, stealing the employer’s property, or even assaulting the employer.
- Corruption in office or intentionally committing a criminal offense against the employer
- Intentionally causing damage to the employer
- Negligence causing serious damage to the employer
- Violating work regulations and the employer has already given a written warning, except in serious cases where the employer is not required to give a warning.
- Abandoning duty for three consecutive working days without reasonable cause and
- Sentenced to imprisonment according to the final judgment. However, if the employee commits an offense for the reasons mentioned above, when the employer terminates the employee, there is no need to pay compensation to the employee, but the reason for the offense must be stated in the termination letter.
From all that has been said, we now understand in what cases employees will not receive severance pay due to termination.
Therefore, in terms of labor law, we must study the conditions and requirements in detail. Otherwise, we may become the ones who lose benefits and are taken advantage of by the employer. And we ourselves should not take advantage or use loopholes in the law to take advantage of the employer.
Any matter or issue that employees and employers can discuss and clear up, and reach a conclusion without having to go to court, would be the best. But if that’s not the case, don’t worry about having to go to court, because the labor court is there for both employees and employers to demand their legitimate rights if they don’t receive justice.
Thank you for the information from the Ministry of Justice.
For more articles on labor law, please visit:
Layoffs due to COVID, is it true? Employees should know this so that they don’t get tricked by the company.
I was laid off and suddenly let go of my job. What should I do?
