Legal Protection for Workers Affected by Layoffs in Indonesian Laws and Regulations

Abstract

This article explores the legal framework in Indonesia that offers protection to workers affected by Termination of Employment (Pemutusan Hubungan Kerja/PHK). It draws upon a range of data sources, including official state documents, laws and regulations, research studies, and relevant literature. Employing a normative-juridical approach, this study concludes that Indonesian laws and regulations provide comprehensive legal protection to workers during and after their employment period. Therefore, Indonesian laws and regulations prohibit layoffs except for justifiable reasons. Additionally, in cases where layoffs are inevitable, employers must offer severance pay and compensation to affected workers. Second, if there is a discrepancy between employers and workers regarding terminating the employment relationship (PHK), the law provides a resolution mechanism through Industrial Relations Dispute Settlement. This can be achieved through bipartite, tripartite negotiations and the industrial relations courts. All of these legal provisions aim to safeguard workers' rights adversely impacted by layoffs.