Legal Protection in Fixed-Term Employment Contracts: Striking a Balance Between Workers' Rights and Obligations
DOI:
https://doi.org/10.32332/istinbath.v22i01.10252Keywords:
Legal Protection, Fixed-Term Employment Contracts, Workers, Rights and ObligationsAbstract
Fixed-term employment contracts (PKWT) have become the dominant practice in modern employment schemes, but at the same time pose challenges in fulfilling the normative rights of workers. This study aims to evaluate the effectiveness of legal protection for PKWT workers within the framework of Indonesian labor law, particularly following the enactment of the Job Creation Law. Using a legal-normative approach and analysis of regulations, court rulings, and labor law literature, this study maps the structural vulnerabilities experienced by contract workers. The research findings indicate that PKWT is often used improperly—applied to permanent jobs, extended beyond the time limit, or accompanied by unilateral clauses detrimental to workers. Outsourcing practices further worsen the bargaining position of workers, especially when combined with loose PKWT schemes, creating quasi-permanent employment status. Many workers face legal uncertainty, lack of social security, and no access to severance pay or maternity protection. Due to limited enforcement resources and overlapping regulations, labor inspections have proven ineffective in preventing systemic violations. On the other hand, applying market flexibility logic that dominates the Job Creation Law weakens the principle of industrial relations justice. Therefore, a redesign of the PKWT legal protection system is needed to respond more to workers' structural vulnerabilities, including clarity of norms, effective oversight mechanisms, and collective protection based on labor unions.
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