Legitimacy of a Fixed-Term Employment Contract Based on Remote Work Concept From the Perspective of the Job Creation Act

Abstract

Labor issues are a social, political and economic phenomenon in modern countries, including Indonesia, and require a way that is no longer conventional in improving the system in employment. As such, remote working can be the solution. The implementation of Remote Working in Indonesia depends on three legal aspects, namely the Criminal Code, the Job Creation Act along with the Labor Law, and the ITE Law. This study aims to analyze the Fixed-Term Employment Contract (PKWT) work relationship based on remote work concept from the perspective of the job creation act and find out the implementation and problems of Fixed-Term Employment Contract. This study employs a normative legal research technique derived from laws and regulations employing a library research technique. According to the findings of this study, Fixed-Term Employment Contract with the Remote Working concept must also adhere to the Labor Law and the Job Creation Act. Besides, the parties who engages on the Fixed-Term Employment Contract must also consider a number of additional legal factors in order to ensure the agreement's legitimacy and the protection of each party's rights and obligations. Despite the passage of the Job Creation Act, it turns out that there are still several issues that require attention.

Legal Consequences for Companies that Carry Out Unilateral Termination of Employment

“…Due to the greatly reduced purchasing power of the community, the company was forced to stop production. Because during this pandemic, most companies are implementing measures to streamline Company costs and most companies experience disputes with their workers, such as: companies are unable to pay workers' wages which should be the top component of the company's budget, both companies are forced to lay off their workers, until the company terminates employment (hereinafter referred to as PHK) to workers with a specific time work agreement (hereinafter referred to as PKWT) and workers with an indefinite time agreement (hereinafter referred to as PKWTT) without paying workers' rights, such as: severance pay, award money and other compensation money, and there are even companies that carry out unilateral layoffs without negotiating with workers so that workers feel disadvantaged and report it to the Manpower Office (Madia et al, 2022).…”