Awang Long Law Review
Vol. 9 No. 1 (2026): Awang Long Law Review

LEGAL PROTECTION OF WORKERS' WAGE AND SEVERANCE RIGHTS IN COMPANY BANKRUPTCY

Faradila Rizkia Saputri (Program Studi Ilmu Hukum Pascasarjana, Universitas Pakuan, Kota Bogor, Indonesia)
Eka Ardianto Iskandar (Program Studi Ilmu Hukum Pascasarjana, Universitas Pakuan, Kota Bogor, Indonesia)
Yenny Febrianty (Program Studi Ilmu Hukum Pascasarjana, Universitas Pakuan, Kota Bogor, Indonesia)



Article Info

Publish Date
11 Oct 2026

Abstract

Workers are the most vulnerable party when a company goes bankrupt, even tho wages and severance pay are normative rights as well as constitutional rights that must be protected by the state. This research aims to analyze the regulation of wage and severance pay protection for workers in bankruptcy, its application in Decision Number 34/Pdt.Sus-Pembatalan Perdamaian/2024/PN.Niaga Jkt.Pst., and to formulate an ideal normative construction post-cancellation of the peace agreement. The method used is normative legal research supported by empirical data, descriptive-analytical in nature, with a legislative and case study approach, analyzed thru bankruptcy theory, legal protection theory, and distributive justice theory. The research results show that the regulation of worker rights protection is complete normatively but structurally flawed. In the decision under review, the application of bankruptcy norms was correct, but the unpaid wages and severance pay of workers that had been overdue for thirty-seven months were completely disregarded, resulting in workers occupying the position of invisible creditors and a reversal of justice. This research offers an ideal normative construction in the form of five layers, namely the harmonization and positivization of norms, the ex officio recognition of workers' claims, special protection post-cancellation of the settlement, state guaranties, and procedural strengthening at the level of the curator and supervising judge.

Copyrights © 2026






Journal Info

Abbrev

awl

Publisher

Subject

Law, Crime, Criminology & Criminal Justice

Description

Awang Long Law Review known as the ALLRev launched on November 1, 2018 and inaugurated formally by Chairman of the Awang Long School of Law. Besides "The Juris" Journal of Legal Sciences, Awang Long Law Review (ALLRev) is the official journal of the Awang Long School of Law published biannually (May ...