Client Alert – Navigating Mass Termination in Indonesia
Over the last few years, mass layoffs have become increasingly common across various industries. Global economic situations, including recession as well as continued inflation have caused significant strain on businesses seeking to maintain financial stability. In Indonesia, the impact of global economic situation, domestic trade policies, as well as the weakening of the national currency plays a crucial role behind many companies’ decision to implement cost cutting measures, which may include workforce reductions. In this case, companies’ resort to mass layoffs may comprise of these two reasons, namely (i) restructuring for efficiency measures or (ii) financial distress or bankruptcy. Beyond these two primary reasons, many other industry-specific hurdles, such as the change of consumer behavior as well as the decline of purchasing power may also play a role in workforce reductions. As companies navigate these challenges, mass layoffs will likely remain a critical issue with legal, social, as well as economic consequences for both companies and employees in Indonesia.
Please refer to the following link for further details on our client alert regarding Navigating Mass Termination in Indonesia
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