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Gojek violates law for laying off 430 workers: KSPI

Tempo - June 26, 2020

Caesar Akbar, Jakarta – Confederation of Indonesian Labor Unions (KSPI) president Said Iqbal said ride-hailing firm Gojek had violated the law on manpower for laying off 430 of its employees.

Iqbal opined the discharged workers were not partners, but employees of the company. "So the layoffs carried out by the firm must be under the Law No. 13/2013, particularly on work termination," he said in a written statement, Friday, June 26.

Iqbal noted that the country's decacorn did not hold a discussion with its employees and ask for approval from the industrial relations dispute settlement institution prior to the layoffs. Based on the law, the workers' dismissal could be nullified sans the approval. Besides, the company did not pay the compensation fund properly, he added.

Previously reported, Gojek announced that it would lay off 430 employees, or 9 percent of its total workers, as it closed two of its lifestyle services, GoLife and GoFood Festival, due to the COVID-19 pandemic.

Gojek Co-CEO Andre Soelistyo explained the affected workers would obtain a compensation fund of four-week salary at minimum and an additional four-week salary for each year of their service.

Iqbal further said that what the company's management did related to the compensation payment was a serious violation, and so KSPI urged Gojek to annul the unilateral decision.

Tempo tried to contact Gojek Corporate Affairs VP Audrey Petriny for confirmation about KSPI's allegations, yet no response was sent until this news was written.

Source: https://en.tempo.co/read/1358288/gojek-violates-law-for-laying-off-430-workers-kspi