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All Journal Journal of Social And Economics Research Journal of Social Science journal of social and economic research
Desman, Yose
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Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Law, Crime, Criminology & Criminal Justice Social Sciences

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RECONSTRUCTION OF ARTICLE 62 OF LAW NUMBER 13 OF 2003 ON EMPLOYMENT REGARDING THE RULES ON COMPENSATION IN THE TERMINATION OF A FIXED-TERM EMPLOYMENT AGREEMENT THAT IS FAIR Desman, Yose; Zainal Arifin Hoesein
Journal of Social and Economics Research Vol 7 No 1 (2025): JSER, June 2025
Publisher : Ikatan Dosen Menulis

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.54783/jser.v7i1.945

Abstract

Article 62 of Law Number 13 of 2003 concerning Manpower requires compensation to be provided by the party terminating the employment relationship in a Fixed-Term Employment Agreement (PKWT) before the end of the agreement period. This provision, although intended as a form of protection for workers, creates an imbalance for employers, especially if the termination is carried out for legitimate reasons or force majeure. This study aims to reconstruct the provision so that it reflects substantive justice for both parties and is relevant to the national legal reform agenda. The method used is normative juridical with a statutory regulatory approach, a conceptual approach, and a comparative legal approach. The results of the study indicate the need for a new formulation of Article 62 that considers proportionality, reasons for termination, and the principle of equality in industrial relations. The proposed reconstruction prioritizes contractual flexibility and balanced protection, in line with the spirit of national legal reform to create a responsive, fair, and sustainable employment system.
RECONSTRUCTION OF ARTICLE 62 OF LAW NUMBER 13 OF 2003 ON EMPLOYMENT REGARDING THE RULES ON COMPENSATION IN THE TERMINATION OF A FIXED-TERM EMPLOYMENT AGREEMENT THAT IS FAIR Desman, Yose; Zainal Arifin Hoesein
Journal of Social and Economics Research Vol 7 No 1 (2025): JSER, June 2025
Publisher : Ikatan Dosen Menulis

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.54783/jser.v7i1.945

Abstract

Article 62 of Law Number 13 of 2003 concerning Manpower requires compensation to be provided by the party terminating the employment relationship in a Fixed-Term Employment Agreement (PKWT) before the end of the agreement period. This provision, although intended as a form of protection for workers, creates an imbalance for employers, especially if the termination is carried out for legitimate reasons or force majeure. This study aims to reconstruct the provision so that it reflects substantive justice for both parties and is relevant to the national legal reform agenda. The method used is normative juridical with a statutory regulatory approach, a conceptual approach, and a comparative legal approach. The results of the study indicate the need for a new formulation of Article 62 that considers proportionality, reasons for termination, and the principle of equality in industrial relations. The proposed reconstruction prioritizes contractual flexibility and balanced protection, in line with the spirit of national legal reform to create a responsive, fair, and sustainable employment system.
Reconstruction of the Rules on Compensation in the Termination of a Fixed-Term Employment Agreement in a Fair Manpower Manpower Agreement: Analysis of Article 62 of Law Number 13 of 2003 concerning Manpower Desman, Yose; Barthos, Megawati
Journal Of Social Science (JoSS) Vol 4 No 6 (2025): JOSS: Journal of Social Science
Publisher : Al-Makki Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.57185/joss.v4i6.468

Abstract

The study discusses the urgency of reconstructing the provisions on compensation in Fixed-Term Employment Agreement (PKWT) termination as regulated in Article 62 of Law Number 13 of 2003 concerning Manpower. These provisions are deemed unjust and lack legal certainty because they do not explain in detail the elements of compensation, do not determine the implementation mechanism, and have minimal sanctions for violations. In practice, PKWT workers are often the most disadvantaged parties when there is a unilateral termination of employment by employers. By using normative legal research methods and conceptual and legislative approaches, this study analyzes the weaknesses of Article 62 norms and proposes a new formulation that is fairer, more balanced, and implementable. The recommendations submitted include an explanation of compensation forms, payment procedures, administrative sanctions, and strengthening the mechanism for supervision and dispute resolution. The results of this study are expected to contribute to the renewal of labor law that supports the protection of the rights of contract workers.
Co-Authors Ahmad Redi, Ahmad Barthos, Megawati Zainal Arifin Hoesein