Gov’t to Impose Sanctions for Company Violating Eid Bonus Regulation

Ministry of Manpower continues to strengthen aspects of supervision and law enforcement to ensure that the payment of holiday allowances (THR) for workers/laborers runs smoothly and according to the provisions.

Minister of Manpower Ida Fauziyah asked the governors, mayors, and regents to directly intervene in resolving any THR complaint filed to the THR Post and do not hesitate to impose sanctions according to their authority if there was a violation of the THR rules. “We are previously concentrating on information and consultation services related to THR and now we are strengthening the aspects of supervision and law enforcement against violations of the THR payment,” she said in Jakarta, Friday (7/5).

The THR Post noted there are 1,569 reports that were submitted during the period of 20 April to 6 May 2021. This number consisted of 670 THR consultations and 899 THR complaints. Various categories of business sectors included in the THR Post include retail, financial services, and banking, construction, manufacturing, oil and gas, medical devices, and the food and beverage industry.

Some of the problems that were complained of are, among others, THR was not paid at all, paid in part, paid in stages by agreement or without agreement, paid not in money, and the company was unable to pay due to the COVID-19 pandemic.

The Ministry’s Secretary-General Anwar Sanusi said that Ministry of Manpower has deployed labor inspectors at the central and regional levels to oversee the implementation of the THR payment.

“We immediately follow up on complaints in the THR Post periodically, then immediately coordinate with the labor agencies to order the labor inspectors to conduct an inspection of the THR implementation. The Directorate General of Guidance and Supervision of Manpower and the K3 have coordinated with all Heads of the Manpower Office, labor inspectors, and mediators throughout Indonesia through virtual channels to coordinate law enforcement measures for the implementation of THR payment, “said Anwar.

He also said that companies affected by COVID-19 and unable to meet the THR payment are encouraged to carry out a dialogue while still referring to laws and regulations.

Furthermore, Anwar reminded labor inspectors in each province if there is a company that is unable to pay the THR seven days before the holiday, there must be a bipartite written agreement between the company and the worker for the period of payment.

The agreement is made in writing and must be supported by evidence of financial statements for the last two years and stating that the THR will be paid one day (D-1) before Eid at the latest.

“In the event that the THR is not paid according to the agreement and/or the THR payment agreement under the prevailing provisions, the supervisor will supervise the implementation of THR payment in the form of an examination note up to a recommendation to the authorized official at the ministry/institution or the local area for the imposition of administrative sanctions,” he said

Anwar also reminded that there is a fine for companies that are late in paying the THR amounting to five percent of the total amount that had to be paid since the expiration of the company’s deadline.

Companies that do not pay the THR within the stipulated time may also be subject to administrative sanctions in accordance with the provisions of laws and regulations. Such sanctions may take the form of written warnings, restrictions on business activities, temporary suspension of part or all production, as well as halting business activities. (PR of Ministry of Manpower/UN) (EST/MMB)