Abstract
Termination of employment or layoffs hits workers’ psychological condition hard. Layoffs commonly occur and have raised concern in global community, especially in the financial industry. Various factors trigger layoffs, including actions from banks and the Covid-19 pandemic. In that era, banks faces risk such as triggering a decrease in financing, non performing loan and etc.This study discusses layoffs that occur in financial institutions using a normative juridical method. Primary data, secondary data and other data were collected and analyzed, which results showed that layoffs mostly occur following the declines in company performance and transactions occurring from corporate actions. The labor law guarantees workers under fixed-term employment contract to be entitled to the remaining term of his work agreement when layoffs occur. However, if the work contract is not extended, no compensation will be given. This scheme distinguishes permanent workers from contract workers.
Sign-in/Register to access full text options 
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 callDisclaimer: 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.
