Indonesia’s Bank Commonwealth will lay off 1,146 staff following its takeover by Singapore’s OCBC, which closed two months ago for S$182 million. Business Times.
The acquisition completion Through OCBC’s Indonesian subsidiary PT Bank OCBC NISP Tbk, it transferred full ownership of the bank to OCBC and integrated over 1.2 million customers into the OCBC Indonesia network.
The layoffs are scheduled to begin on September 1, and affected employees will receive severance pay, seniority pay, retirement benefits and additional benefits based on their length of service.
Bank Commonwealth, which had 1,209 employees last year, is offering affected staff employment opportunities with OCBC NISP instead of redundancy.
Indonesian labour organisations expressed concerns about the transparency and fairness of the dismissal procedures.
They highlighted issues such as the consolidation of pension payments and severance packages, which they argued may not be in compliance with Indonesian legal standards.
The union also criticized the severance pay formula for not including a fixed benefit component that is typically required by local labor laws.
Bank Commonwealth has committed to complying with legal requirements in compensating laid-off employees.
An OCBC spokesperson said the bank is actively working with these employees to explore employment opportunities within OCBC NISP, aiming to align these opportunities with their skills and career aspirations.
OCBC NISP is also committed to assisting affected employees with the transition.
The union has requested intervention from Indonesia’s Ministry of Labour to seek clarification and resolution of the legal issues raised.
Under Indonesian law, employees of the acquired company will not automatically be transferred to the acquiring company without mutual agreement and may be dismissed if no agreement is reached.
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