Employers May Terminate Workers for Entering Pension Age

Friday, 21 July 2017 , 11:00:00 WIB - Legal Tips

workers are seen demonstrating against their employment termination (ANTARA)

JAKARTA, GRES.NEWS – In the labor world, disputes between workers and their company frequently happen. One of the frequent disputes concern employment termination against workers entering their pension age.

A layoff dispute according to Law No.2/2004 on Settlements of Industrial Relation Disputes, is differing opinions on termination of employments by one off the parties.

Law No.13/2003 on Manpower allows employers to layoff employees for entering pension age as long as the employer has met all the respective employees’ rights.

According to the law’s, Article 167 Paragraph 1, employers may terminate workers/laborers for entering their pension age as long as the employer has registered the workers/laborers to a pension fund program and the dues have been fully paid by the employer. The workers/laborers who have been terminated would not be entitled to severance pay.