Through the Circular Letter of the Minister of Manpower of the Republic of Indonesia Number M/6/HI.00.01/V/2020 concerning the Implementation of Providing Religious Holiday Allowances in 2020 in Companies during the Corona Virus Disease 2019 (Covid-19) Pandemic, the government in this case the Ministry of Manpower (Kemenaker) stipulates that companies must continue to pay THR to workers in accordance with statutory provisions.
THR payment must still refer to the old wage not after the wage has decreased.
The reason is that the conditions of the Covid-19 pandemic are temporary so that the agreement to reduce wages is also not permanent.
In addition, the obligation to provide THR has existed since the beginning of the agreement where the basis for calculation uses the wages that were agreed before the pandemic occurred.
If the company is unable to pay THR, it is necessary to conduct a dialog between the company and workers.
The dialog process is carried out in a family manner and is based on transparent internal company financial reports, as well as good faith to reach an agreement.
In the dialog, the following can be agreed upon:
- If the company is unable to pay the THR in full at the specified time in accordance with statutory provisions, the THR payment can be made in stages.
- If the company is unable to pay THR at all at the specified time according to statutory regulations, then the THR payment can be postponed until a certain period of time is agreed upon.
This agreement must be reported by the company to the Service Office that organizes government affairs in the field of local manpower. - Time and method of imposing fines for late payment of religious THR.
This agreement does not eliminate the obligation of employers to pay THR and fines to workers with the amount in accordance with statutory provisions.
The THR and fines must be paid in 2020.
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The above description is the government’s effort to protect workers’ rights due to the Covid-19 pandemic.
Although companies get relief in paying THR, it does not mean that companies can be absent from their obligations.
Remember, there are sanctions waiting if the company violates.
For KH friends who are still confused about labor law in a company, let’s contact Kontrak Hukum now!
