Jurnal Masharif al-Syariah: Jurnal Ekonomi dan Perbankan Syariah
Vol 10 No 3 (2025)

The Role of Labor Law on Business Sustainability and Workers' Welfare in Indonesia

Siti Mufidatul Azizah (Unknown)
Chofifah Indah Parawansyah (Unknown)
Fitrotul Bita Aulia Putri (Unknown)
Reviby Adam Nazalla Dhias (Unknown)
Arif Zunaidi (Unknown)



Article Info

Publish Date
16 Jun 2025

Abstract

This research discusses the Role of Labor Law on Business Sustainability and Workers' Welfare in Indonesia. In the context of economic growth and technological development, labor law serves as a tool to maintain a balance between business sustainability and the protection of workers' rights. This research uses a literature study method with a content analysis approach to examine various labor regulations such as Law No. 13 of 2003, the Job Creation Law, and the Workers' Welfare Law. Year 2003, the Job Creation Law, and the BPJS Law. The results show that compliance with labor law has a positive impact on operational stability, employee loyalty, and company competitiveness. However, implementation challenges such as lack of supervision, unlawful employment contracts, and low legal literacy of workers are still an obstacle. Therefore, synergy between the government, companies, and workers is needed to create a healthy and productive work environment.

Copyrights © 2025






Journal Info

Abbrev

Mas

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

Jurnal Masharif al-Syariah: Jurnal Ekonomi dan Perbankan Syariah (e-ISSN: 2580-5800; p-ISSN: 2527-6344) is a journal that is managed by the Islamic Banking Study Program, Muhammadiyah University of Surabaya and in collaboration with professional organizations, namely Ikatan Ahli Ekonomi Islam. This ...