This study aims to analyze the layoff policy (PHK) within Indonesia’s Job Creation Law No. 11 of 2020 through the perspective of Karl Marx’s conflict theory. The layoff policy is a crucial issue in labor relations as it directly affects workers’ welfare and social stability. The Job Creation Law provides greater flexibility for employers to terminate employment, yet this has sparked debate due to the perceived weakening of workers’ bargaining power. This research employs a qualitative approach with a library research method, where data are collected from academic literature, legislation, and related scholarly journals. The findings reveal that the layoff policy in the Job Creation Law reflects a form of capitalist class domination over the working class, as explained by Karl Marx’s conflict theory. The imbalance between employers and workers is reinforced by state intervention that tends to side with capital owners. The study concludes that Indonesia’s labor policies remain oriented toward economic efficiency rather than social justice for workers.
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