Disharmonization Of Employment Termination Regulations In The Job Creation Law And The Industrial Relations Dispute Settlement Law And Its Implications For Worker Protection

Abstract

A Termination of Employment (PHK) is a crucial issue in industrial relations because it affects workers’ economic conditions, social well-being, and livelihood sustainability. The enactment of Law Number 6 of 2023 on Job Creation introduces significant changes to the grounds, procedures, and compensation for termination. This study analyzes the regulation of termination under the Job Creation Law and the dispute resolution mechanisms under Law Number 2 of 2004 on Industrial Relations Dispute Settlement (PPHI). The findings show that simplified procedures and reduced severance potentially weaken worker protection. The lack of alignment between the two laws creates legal uncertainty, making regulatory harmonization necessary to ensure a fair balance of interests authorized to modify the abstract manuscript so that it does not go beyond this first page through puns without changing the substance of the Abstract.