Abstract

In the article, the focus of the discussion is on employee terminations that occur during a pandemic, and the things that companies must fulfill when terminating employment, in terms of Sharia Economic Law. The Covid-19 pandemic that hit caused the government to issue a policy to limit the movement of people by implementing a lockdown and/or PSBB policy. The program caused a stagnation of the wheels of the community's economy. Entrepreneurs suffer losses due to unstable economic conditions, and people's purchasing power has decreased drastically. Thus, to avoid greater losses, many companies cut production costs by terminating their employees. From the results of the study, it is known that termination of employment during the pandemic is included in the ijarah category which is in the company's department, which acts as musta'jir (tenant). In ijarah, musta'jir is allowed to terminate the employment relationship with strong reasons, for example, because of the threat of bankruptcy. The things that must be fulfilled by the company such as severance pay and long service awards are adjusted to the applicable law. If there is still a dispute, then the parties can use the islah agreement to find a middle way. So it can be concluded that termination of employment during a pandemic is something that is allowed according to sharia economic law, provided that the company's obligations to employees affected by the termination must be carried out, and if no agreement is reached between the company and employees regarding their respective rights and obligations. each party, then the parties can choose the islah method to find the best solution.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.