Laid-off Indonesian workers get $4 million severance pay

Over 2000 garment industry workers in Indonesia have been given $4 million of severance pay after being laid-off in November last year.

Their Korean employers Hojeon shut down their West Java factory, which produced apparels for international brands like Nike. They were due to compensate their employees under Indonesia’s severance laws which stipulated the workers receive 18 months worth of severance pay which was about $4,000 each.

Hojeon paid only half that amount according Washington-based advocacy group Workers Rights Consortium (WRC) who held negotiations with the Korean company along with labour unions and Nike. And after months of talks, the workers will finally get the full severance pay.

But severance laws might get less stringent moving forward as the Indonesian government is reportedly planning to roll back labor protections in the hope of attracting more foreign investment.

Meanwhile, it’s important for companies to be up-to-date and adhere to the employment and dismissal laws in the country they operate in as it could turn both ugly and costly and evident from this latest incident.

So let’s take a look at what the different laws governing dismissals are in some of the countries in South East Asia:

Employers guide to dismissal laws in South East Asia