Greenation International Journal of Law and Social Sciences
Vol. 4 No. 4 (2026): (GIJLSS) Greenation International Journal of Law and Social Sciences (September

Legal Analysis of Workers Victims of Mass Layoffs Due to Company Efficiency from the Perspective of Indonesian Labor Law

Sukhebi Mofea (Universitas Islam Syekh Yusuf, Tangerang, Indonesia.)



Article Info

Publish Date
03 Sep 2026

Abstract

This study analyzes the legal protection of workers who become victims of mass layoffs due to company efficiency policies from the perspective of Indonesian labor law. Using a normative legal research method with a literature review approach, the study examines labor regulations, legal doctrines, judicial decisions, and international labor standards related to efficiency-based termination of employment. The results show that although efficiency is recognized as a legitimate reason for layoffs, the absence of clear legal standards creates legal uncertainty and weak protection for workers. Efficiency-based layoffs often result in unfair dismissal procedures, inadequate compensation, and weakened bargaining positions for employees. The study concludes that Indonesian labor law must balance economic efficiency with justice, legal certainty, and workers’ welfare through stronger regulations, fair procedures, and comprehensive social protection mechanisms.

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Journal Info

Abbrev

GIJLSS

Publisher

Subject

Law, Crime, Criminology & Criminal Justice Social Sciences

Description

Greenation International Journal of Law and Social Sciences (GIJLSS) is a journal that uses a blind peer-review model that can be accessed online. GIJLSS aims to publish a journal containing quality articles that will be able to contribute thoughts from theoretical and empirical perspectives for the ...