Indonesia Conference Directory

The revision of Law Number 13 of 2003 regarding Manpower has been determined to be included in the 2019 national legislation program. Businessmen have urged to immediately revise the severance pay rules in that law because it is considered higher than other countries so that it burdens businessmen. Meanwhile, the worker-s unions also made a massive rejection of the plan. According to workers, the revision of the terms of severance according to the insistence of employers is very impartial to workers and could lead to massive termination of employment in Indonesia. This study will examine how arrangements related to severance should be applied in Indonesia to accommodate the interests of employers and workers. The author uses normative juridical research methods. The data collection method used is the literature study. The tools used are documents in the form of primary legal materials, secondary legal materials, and non-legal materials. The data obtained were then analyzed qualitatively then presented descriptively. This paper found that arrangements relating to severance pay need to be returned to their philosophy, namely as -provision- for workers/laborers who have been terminated from employment until the person concerned gets a new job. So according to the authors, the amendment to the labor law is more appropriate if the elimination of severance is done and replaced with a termination compensation system as applied to civil servants.