What are Rights of Employees Who Voluntarily Resign?
Adinda Rifdahtama
• Manpower & Immigration • 26 Apr 2021

There are many factors that make an employee stay in a workplace/company or decide to resign from the workplace/company where they work. A common factor that usually occurs when an employee decides to resign is the issue of wage/salary. Many employees assume that the amount of salary should be in accordance with the work load they receive. In addition, the difference in salary received by other employees with the same job description in other workplaces/companies will be a comparison for employees and encourage them to resign.


In the event that an employee submits resignation, the employer or company is obliged to know what employment rights the employer must be fulfilled. First of all, an employer shall know in advance whether the employee is an employee with a Definite Time Work Agreement (“PKWT”) or an Indefinite Time Work Agreement (“PKWTT”) because both have different employment rights.


In the event of employee with PKWT, there are 3 (three) consequences possibilities, there are:

a.    Compensation

Based on Article 17 of Government Regulation No. 35 of 2021 concerning Definite Time Work Agreement, Outsourcing, Office Hour and Rest Time, and Termination of Employment ("GR 35/2021") has stated that:

"In the event either party terminates the employment prior the end of the period stipulated in the PKWT, the employer is obliged to provide compensation money as referred to in Article 15 paragraph (1), the amount of which is calculated based on the period of PKWT that has been implemented by the Employee/Labor."


The provisions for the amount of compensation money which mentioned are as follows:

1.    PKWT for 12 (twelve) months continuously, is given as much as 1 (one) month of wages;

2.    PKWT for 1 (one) month or more but less than 12 (twelve) months, are calculated proportionally by calculating:

Working period x 1 (one) month of wages;

            12

3.    PKWT for more than 12 (twelve) months, are calculated proportionally by calculating:

Working period x 1 (one) month of wages.

            12


b.    Without Compensation

Regarding this matter could be regulated in detail in Work Agreement, Company Regulation, or Mutual Work Agreement.


c.    Indemnity

Based on Article 62 of Law No. 13 of 2003 concerning Employment stated that:

If either party terminates the employment relations prior to the expiration of Definite Work Agreement, or if their work agreement has to be ended for reasons other than what is given under paragraph (1) of Article 61, the party that terminates the relation is obliged to pay indemnity to the other party in the amount of the employee’s/ labor’s wages until the expiration of the work agreement.”


Those possibilities could be regulated further in detail in Work Agreement, Company Regulation, or Mutual Work Agreement to stipulate rights that will be received.


As for employess with PKWTT, based on Article 50 GR 35/2021 it is explained that:

"Employee/Laborer who resigns on their own accord and meet the requirements as referred to in Article 36 letter i, are entitled to:

a.    Rights compensation money according to the provisions of Article 40 paragraph (4); and

b.    Separation money, the amount of which is stipulated in the Work Agreement, Company Regulation, or Mutual Work Agreement."


The terms as mentioned are as follows:

a.    Submit a resignation application in writing no later than 30 (thirty) days before the date of resignation;

b.    Not bound by bond; and

c.    Continue to carry out its obligations until the date of resignation.


While the right compensation money as mentioned includes:

a.    Annual leave that has not been taken and has not failed;

b.    Return costs or fees for workers and their families to the place where employees are accepted to work; and

c.    Other matters stipulated in the Work Agreement, Company Regulations, or Mutual Work Agreement.


In the event that employee submits a resignation prior to the holiday, the worker is still entitled to receive Religious Holiday Allowance ("THR") because basically every employee is entitled to THR. Furthermore, Article 7 paragraph (1) of the Minister of Employment Regulation No. 6 of 2016 concerning Religious Holiday Allowance for Employee/Laborer in Company states that:

"Employee/labore whose works relationship is based on an indefinite work agreement and has been terminated 30 (thirty) days prior to Religious Holidays, are entitled to Religious THR."

 

So, it can be seen that if the employee resigns within 30 (thirty) days before the religious holiday, the employee is entitled to THR from the company.



This Article is generally made for the purpose of ANR Law Firm publication only and should not be treated as legal advice for your legal problem. Shall you have any further questions regarding this topic, you may contact the Advocate who authored this article at anrlawfirm@anr-lawfirm.com.


Author: Adinda Rifdahtama, S.H.