Introduction: When Job Security Disappears
Not long ago, a shocking announcement came from one of Southeast Asia’s largest e-commerce companies: Shopee. Amidst aggressive expansion and seemingly promising growth, thousands of employees were suddenly informed that they no longer had jobs. For many, losing a job isn’t just about lost income — it’s the loss of security, dignity, and the future they had carefully planned.
Behind the headlines and statistics, there’s something that is often overlooked: how taxation systems affect the well-being of employees who have been laid off. It may seem technical, even impersonal, but taxes are a fundamental part of our lives — especially during our most vulnerable moments.
This article aims to explore, from a human perspective, how layoffs and taxation intersect and impact the real lives of former Shopee employees, and what we, as a society, must reflect on — from the government, companies, to each of us as citizens.
Part 1: Layoffs Are More Than Just Numbers
1.1 The Emotional Reality Behind Layoffs
When Shopee decided to reduce its workforce across various countries, including Indonesia, many employees felt as though their world collapsed. Many were breadwinners, paying mortgages, covering school fees, or saving up for their weddings.
Imagine this: today you go to work like usual, only to go home with a termination letter in hand. It’s not just your paycheck that disappears, but also your sense of identity, your plans, and the meaning you’ve attached to your job.
1.2 Corporate Strategy and Employment Policies
Shopee and other companies often justify layoffs as part of business efficiency. But behind the word “efficiency,” there are thousands of humans now forced to find new direction. Many of these employees held permanent contracts and regularly paid income taxes.
This is where the connection begins: when income disappears, tax relief should serve as a lifeline. Unfortunately, that’s not always the case.
Part 2: The Role of Taxes in the Lives of Laid-off Employees
2.1 Taxes: A Burden or a Safety Net?
Most of us know taxes simply as deductions from our payslips. But in an ideal society, taxes represent a form of modern mutual aid — the strong supporting the weak, the capable helping those in distress.
Yet, when layoffs happen, many former employees feel unprotected by the state, even though they’ve consistently fulfilled their tax obligations.
For instance, in Indonesia, severance pay is subject to specific tax rules. Based on Director General of Taxes Regulation No. PER-16/PJ/2016, certain severance amounts are tax-exempt. But many former workers don’t fully understand their rights — leading to unnecessary or excessive tax deductions.
2.2 Complex Procedures and Lack of Information
For someone who just lost their job, navigating the tax system can be psychologically overwhelming. The lack of information and guidance creates confusion: Do I still need to file taxes? What if my severance was overtaxed? Can I claim a refund?
Instead of offering relief, the tax system often feels like a bureaucratic maze — adding stress to an already difficult time.
Part 3: The Real Impact of Taxes on Former Employees’ Well-being
3.1 Financial Impact: Every Rupiah Matters
For someone who’s been laid off, every rupiah (or dollar) from their severance package matters. That money isn’t just emergency cash — it could be their only means of paying rent, covering tuition, or surviving the next few months.
If that severance is still subject to unjust or misunderstood taxes, the state inadvertently worsens the hardship. In truth, social justice demands that tax policies offer relief or incentives to help people recover after job loss.
3.2 Psychological Impact: The Invisible Burden
Equally important is the psychological weight. Many laid-off employees feel betrayed or abandoned — “Why did I pay taxes all these years, only to be left alone now?” That question, though painful, is valid.
If the tax system were more humane — with simpler processes, automatic relief, and clear communication — people would continue trusting the system, even in their hardest moments.
Part 4: A Hope for a More Human-Centered System
4.1 Humane Taxation: More Than Just Numbers
Tax systems shouldn’t just aim for efficient revenue collection. Beyond that, taxation must reflect empathy and fairness, especially toward vulnerable groups like the recently unemployed.
Tax relief shouldn’t involve long applications or hidden requirements. If someone has been laid off, tax authorities should automatically extend deadline waivers, exemptions, or relief — without adding administrative pressure.
4.2 Inclusive Tax Education
Tax literacy must also improve — not just for business owners, but for everyday workers. They should know that their tax rights could support them in hard times, whether through refunds, severance exemptions, or payment postponements.
Governments could even work with companies to offer workshops or tax assistance for laid-off employees, helping them make sense of their new financial landscape.
Part 5: A Call to Action for Corporations, Governments, and Society
5.1 To Companies: Social Responsibility Isn’t Just for Good Times
Corporations like Shopee often take pride in their corporate social responsibility (CSR) programs. But true responsibility is tested not during celebrations, but when tough decisions like mass layoffs must be made.
If layoffs are unavoidable, companies should offer legal and financial guidance, including on taxation, to ensure former employees aren’t left to figure it out alone.
5.2 To Governments: The State Must Show Up When People Fall
Government bodies — especially tax offices and labor ministries — should create special protocols for mass layoff situations. These should include tax breaks, temporary income assistance, and retraining programs.
If the state is present and supportive during times of crisis, people will feel that taxes are truly a collective investment — not a one-sided obligation.
5.3 To All of Us: It’s Time to Rethink What Taxes Really Mean
As citizens, we must also shift how we view taxes — not merely as deductions, but as social solidarity. Taxes are a moral contract between individuals and the nation.
But for this contract to work, the state must uphold its side — by ensuring fairness, dignity, and care, especially for those going through difficult transitions.
Conclusion: Behind the Numbers, There Are People
When Shopee carried out its mass layoffs, most people saw the numbers. But behind every number was a human story — a family, tears, confusion, and a flicker of hope.
The tax system should not deepen wounds, but help people rise again. This is not merely about fiscal policy — it’s about justice, compassion, and humanity.
We may not yet have the perfect system, but through conversations like this — through articles like this — perhaps the voices of those often unheard can reach the desks of those in power.
Because in the end, we all want to live in a nation that cares — not just when we are strong, but most importantly, when we are at our weakest.