Layoffs due to efficiency raise legal issues between employers' interests in maintaining their businesses and workers' rights to legal protection. Regulations on efficiency layoffs are contained in Law Number 6 of 2023 concerning Job Creation and Government Regulation Number 35 of 2021 to balance the rights of both parties. This research examines three main issues: the legal regulation of layoffs in Indonesia, the form of legal protection for affected workers, and the judge's considerations in Supreme Court Decision Number 656 K/Pdt.Sus-PHI/2023.Using a descriptive-analytical normative legal research method with a statutory approach, primary and secondary data were analyzed qualitatively using deductive reasoning. The results show that the regulation on efficiency layoffs has a clear legal basis, but its implementation in the field still often triggers imbalances. Supreme Court Decision Number 656 K/Pdt.Sus-PHI/2023 emphasizes that efficiency reasons must be concretely proven and companies are prohibited from eliminating workers' normative rights. Therefore, strict supervision from the government is needed, increased compliance by employers with official layoff procedures, and consistency from law enforcement officials to make this decision a permanent jurisprudence to protect workers' rights.
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