Employee’s Position as Privileged Creditors When Debt of Bankruptcy is Larger Than Bankruptcy Assets

Abstract

When the company is declared bankrupt, workers' rights are fulfilled through the Curator's bankruptcy assets sale. Even though employees have a unique position as creditors, if the bankruptcy debtor's liabilities are much greater than the debt, these privileges do not directly make the employee the first party to be paid for their obligations. Separatist creditors are put first so that employees do not get full rights. This study aims to determine the fulfillment of workers' rights when the company is declared bankrupt. This study uses a normative juridical approach. Data in the form of regulations, decisions of the commercial court and the Supreme Court, and journal articles are obtained through internet searches. The supporting data in the form of interviews and questionnaires obtained directly from employee representatives will be used as a comparison. The data obtained were then analyzed descriptively, qualitatively, and deductively. Although the Law regulates employee's rights to get wages and severance pay, when the company is declared bankrupt, workers do not get full rights or do not provide a sense of justice for workers, which is constitutionally guaranteed in Article 28 D of the 1945 Constitution.