When looking for ways to reduce costs during the coronavirus pandemic, one thing that inevitably comes to mind is employees who are not performing well. There are quite a few employees who have done nothing wrong and are working normally, but they are not producing results or are not acting as expected. Normally, we educate the employee and encourage them to improve, but if the employee seems to be exceeding their abilities, the idea of ​​``dismissal'' comes to mind. Is it possible to dismiss employees with insufficient skills in Indonesia, where it is difficult to dismiss employees?

[Conditions for application for dismissal]

In principle, it is possible to dismiss an employee due to lack of ability. However, the following three pieces of evidence are required: (1) proof that you have already received training, (2) evidence that you lack the ability, and (3) proof that you have tried other jobs but there is no job that can be done within the company. For ①, you can use evidence of your participation in educational training, interview records, etc. ② is the assessment result. There are many cases where the department you belong to says, ``I want you to fire me because you can't use me,'' but the evaluation results from the superior in question are ``average.'' We need to have the courage to make evaluations based on the facts. It is generally said that at least three consecutive poor ratings are required. However, the three times does not necessarily mean that it will take three years based on the annual wage adjustment assessment. Some companies conduct interim evaluations, while others conduct assessments for bonuses, so any results can be used. Specifically, ③ is a record of job changes or transfers. You will also need to provide evidence that you have tried other jobs but still lack the ability.

[Process of termination of employment relationship]

The question of whether it is possible to dismiss a worker if the above three proofs are provided is that Indonesia's worker-friendly labor laws stand in the way. If you try to terminate the employment relationship in accordance with the law, even if the reason is legally possible, you may end up going through a lengthy process that involves two-party negotiations, arbitration by the local labor regional office, labor-management dispute resolution court, and then the Supreme Court. The required period and costs will depend on which stage an agreement can be reached. If you go to court, you will need a lawyer, and while you are suspended, you will be required to pay 100% of your wages, although there is a maximum of 6 months, so you will also need to pay for that. Law No. 3 of 2004, called the Labor-Management Dispute Settlement Law, requires that each (August 28, 2020)However, in reality, arbitration takes several months, the Industrial Dispute Settlement Court takes several months, and the Supreme Court often takes more than a year. Therefore, it is recommended that the contract be terminated by agreement between labor and management whenever possible. It is easy for employees to understand that if the company is fully prepared, they cannot win even if the case goes to court. In the end, the negotiation often comes down to how much severance pay to pay, but you should start the negotiation based on the severance amount that is in accordance with the law.

Related legislation: Law No. 2 of 2004 UU-2/2004