Corporate Responsibility in Unlawful Termination of Workers Following Automatic Employment Status Conversion Under Indonesian Labor Law
DOI:
https://doi.org/10.24252/al-risalah.v26i2.68483Keywords:
Corporate Liability, Termination of Employment, Daily Casual Workers, Fixed-Term Employment Contracts.Abstract
This study analyzes a company’s legal liability for unilateral termination of employment in the case of the conversion of casual daily workers (PHL) to indefinite-term employment contracts (PKWTT) based on Decision No. 7/Pdt.Sus-PHI/2025/PN Bdg. The research method used is normative legal analysis employing a statutory approach and a case-based approach. The results of the study indicate that PT. Perkebunan Karet Suka Karet committed multiple legal violations by disregarding the change in the workers’ employment status, which automatically converted to an indefinite-term employment contract (PKWTT) by law after continuous service for 25 years and 6 months. The company neglected its legal responsibilities by carrying out unilateral termination without a written notice procedure, without bipartite negotiations, and by failing to fulfill the workers’ statutory compensation rights. Based on the judge’s ruling, the company bears full civil liability to pay compensation totaling Rp57,542,108, which includes severance pay and service award in accordance with Government Regulation No. 35 of 2021. This study concludes that the disregard for workers’ status and rights results in administrative sanctions as well as legal action for unlawful acts against the company.
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Copyright (c) 2026 Gabriel Dorinda S, Dwi Desi Yayi Tarina
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