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Anvaya Hotel Accused of Ignoring Labor Law and Denying Permanent Employment Slots to Kuta Neighbors

DenPost reports that the traditional head (Bendesa) of the Village of Kuta, Wayan Wasista, has issued an ultimatum to the management of the Anvaya Hotel to urgently clarify the status of contract workers by elevating them to permanent staff as stipulated by the law.

The ultimatum was delivered in a meeting with the hotel’s management held on Monday, October 22, 2018. Without specifically addressing contract issues with its staff, a management representative attending the meeting said the promotion of contract workers to permanent staff status was a matter left for the exclusive purview of the Company’s management in Jakarta.

Wasista’s strong threat follows reports from Kuta residents working at the Anvaya Hotel who have complained that the property’s management was violating national labor rules in a number of areas. For instance, current labor rules state that after the end of a contract period, contract workers must either be elevated to permanent employees or left unemployed for a minimum of 30 days before signing a new work contract.

Wasita complains that the Hotel is not following the laws and guidelines on contract workers and if the situation continues and the management fails to demonstrate good faith he will bring the problem to a village council (paruman desa) to discuss the next step. The results of any paruman desa would be forwarded to the Regent of Badung, Nyoman Giri Prasta, for further disposition.

In Bali, it is generally accepted that hotels have a moral requirement to provide employment for members living in the surrounding community.

“The situation needs to be clarified. I give a deadline of the end of this year for a final clarification. If by 2019 this remains unclear, then I will bring the matter to the village council and the Regent of Badung. There are villagers (from Kuta) who complain they are being left hanging due to the lack of certainty regarding transitioning from being a contract worker to a permanent employee,” said Wasista after meeting the representatives of the Anvaya Hotel management and Made Gunarta of Badung’s Manpower Office

Gunarta explained to DenPost that the “gap period” (masa jeda) between the end of a temporary work contract and the issuance of a new work contract does not apply in every instance. Work Contracts for Specific Periods (PKWT) only applies for work assignments that are truly temporary in nature and should never exceed contract periods of more than three years.  “The intention of ‘masa jeda’ in Ministerial Decree #100 is actually not applicable for hotel operations. Maybe the understanding of ‘jeda’ has been unintentionally applied and used in the employment of staff at the Hotel Anvaya. This is not allowed,” he said.

The Manpower official explained that the transition from being a contract worker to a permanent employee can occur automatically. When the subject employee continues to work after the end of the original contract period and an additional contract period of one year he or she is ipso facto becomes a permanent employee. But even in this context clarification and open confirmation from company management is required. Because of this, Gunarta expressed the hope that the management of Hotel Anvaya would clarify the situation and their decision in accordance with the existing law.

Two members of the Hotel’s management, Wayan Simpen and Marsana, following the meeting with village officials and Manpower officials, refused to comment. During the actual meeting, the two did not deny that the Hotel had provided a one year employment contract followed by a second contract for two year. While local management are allowed to create work contacts, the right to raise contract workers to the status of permanent workers remained the exclusive right of Jakarta-based senior management.

Another senior member of the Kuta Community, Nyoman Graham Wicaksana, expressed his appreciation to Wayan Wisata of the Manpower Department who had taken the time to respond to local villagers concern working at the Anvaya Hotel. Graham said he hoped the Regency’s House of Representatives (DPRD-Badung) would join the effort to ensure labor laws are fairly and impartially enforced and local villagers are afforded a fair opportunity to become permanent employees of the hotels operating in their community.