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LEGAL ANALYSIS OF UNLAWFUL ACTS IN THE PRACTICE OF UNILATERAL TERMINATION OF EMPLOYMENT RELATIONS WITHOUT A LAWFUL INDUSTRIAL RELATIONS PROCEDURAL BASIS Jasatua; Appe Hutauruk; Hotman Sinambela; Sunarno
JILPR Journal Indonesia Law and Policy Review Vol. 7 No. 1 (2026): Journal Indonesia Law and Policy Review (JILPR), October 2026
Publisher : International Peneliti Ekonomi, Sosial dan Teknologi

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Abstract

The phenomenon of unilateral termination of employment (PHK) by employers is increasingly prevalent, ignoring the formal procedures of bipartite negotiations and mediation required by Law Number 2 of 2004 concerning the Settlement of Industrial Relations Disputes (UU PPHI). Although layoffs should be a last resort (ultimum remedium), in practice, this action is often carried out arbitrarily only through an internal company decree. Protection of workers’ rights must guarantee legal certainty that dispute resolution procedures are an absolute requirement that is mandatory. The state, through the rule of law and the principle of justice, is obliged to ensure that ignoring these procedures is not only considered an administrative defect, but also a violation of legal obligations (rechtsplicht) that give workers the right to demand more comprehensive accountability. To analyze the procedural provisions for resolving industrial relations disputes according to Law No. 2 of 2004; and to analyze the qualifications of unilateral dismissal without procedure as an Unlawful Act (PMH) based on Article 1365 of the Civil Code. Research Method: This research uses a normative juridical method with a statute approach and qualitative document analysis. The procedures in the PPHI Law are mandatory formal requirements. Ignoring these procedures constitutes a violation of the employer’s legal obligations (rechtsplicht). Legally, unilateral dismissal fulfills the elements of PMH if there is an active action by the employer that violates the law, there is an error, and causes material and immaterial losses to workers who have a direct causal relationship with the action. This study concludes that unilateral layoffs without legal procedures have the potential to be declared null and void by law and open up opportunities for workers to demand more comprehensive compensation beyond just normative employment rights.