LEGAL ANALYSIS ON EMPLOYEES UNPAID LEAVE DURING COVID-19 PANDEMIC (CASE STUDY IN INNA HOTEL PARAPAT, NORTH SUMATERA – INDONESIA)

Abstract

With the impact of Covid-19 which resulted in negative economic growth and hampered the activities of all lines including business activities, the company made a policy of laying off employees or unpaid leave as an urgency to protect business continuity where the legality of leaving employees in emergency situations has not been regulated either in the Law - Law No. 13 of 2003 concerning Manpower and in Law No. 11 of 2020 concerning Job Creation. This thesis research aims to analyze the binding strength of the Directors Instruction No. policy. 0001 / INS / DIRUT / HIN / IV / 2020 concerning Business Sustainability Policy during the COVID-19 Pandemic which was issued on April 9, 2020 where one of the contents of the policy is to reimburse workers in the form of health insurance (BPJS) for employees who being sent home followed by what adjustments were made by the management of Inna Hotel Parapat in relation to the new Manpower Act using the normative juridical research method followed by using the Statute Approach and Conceptual Approach. The results of thesis writing show that the right in the form of wages and rights in the form of health benefits are rights that must be received simultaneously by employees and there are contradictions in the application of these policies and the implementation of "Unpaid Leave" which is implemented by Inna Hotel Parapat are deemed incompatible with the form of "Unpaid leave" according to the Manpower Law and Circular of the Minister of Manpower. Therefore, it is necessary to formulate legislation that specifically regulates the policy of do the Unpaid Leave for employees in emergency situations by employers to balance the obligations and rights of both parties.