Job Loss Guarantee: Legal Aspects and Implementation in Jakarta, Indonesia

Abstract

The Indonesian government added the Job Loss Guarantee program as an additional social security for employment based on Government Regulation Number 37 of 2021. This program is expected to provide assistance to workers who have just lost their jobs by providing benefits in the form of cash assistance, access to job market information so that workers can look for work new jobs, and job training so that workers are more mature in preparation for getting new jobs after experiencing layoffs. Further research is needed regarding legal aspects and their implementation in Indonesia, especially in Jakarta. The research method that will be used is an empirical juridical research method. The results of this research are that the legal aspect of implementing the job loss guarantee program based on this Government Regulation is a consequence of the enactment of Law Number 11 of 2020 concerning Job Creation which amends Article 18 of Law Number 40 of 2004 concerning the National Social Security System by adding a new type. The new social security program is job loss guarantee and adds new norms by adding Article 46A which regulates: Workers/laborers who experience termination of employment are entitled to job loss guarantee organized by the employment social security administration body with the principle of social insurance based on an insurance mechanism. with payment of contributions between workers and employers with benefits in the form of training and certification, cash and placement facilitation. Second, the implementation of job loss guarantees in Jakarta, based on employment conditions in February 2023, the number of working population in the DKI Jakarta area was recorded at 4.86 million people and workers whose employment was terminated throughout 2023, from January to May amounted to 127 and then increased more significantly in June as many as 683, in July – August as many as 1,105 and in September as many as 1,259 workers had their employment terminated. The regulation of terms and conditions for job loss guarantee in this Government Regulation still needs to be refined. Job loss guarantee benefits should be alternative or optional, not cumulative. Every worker who loses their job should be able to enjoy one or more of the three job loss benefits. Depends on the cause of the worker losing their job.

Keywords: job loss guarantee, employment social security, labor law

DOI: 10.7176/JLPG/141-06

Publication date: April 30^th 2024