Termination of Employment of Workers/Laborers by Employers on Efficiency Grounds Due to Losses at PT. Gemilang Sawita Indah Permai

DOI

10.2991/978-2-38476-531-7_36How to use a DOI?

Keywords

Disputes; Termination of employment; loss of efficiency

Abstract

This study examines the termination of employment by PT. Gemilang Sawita Indah Permai on the grounds of efficiency due to financial losses. Employment termination is a legal consequence that may arise at the end of an employment relationship, particularly under certain justifications. While previously regulated under Law No. 2 of 2004 on Industrial Relations Dispute Settlement, the enactment of Law No. 6 of 2023 and Government Regulation No. 35 of 2021, along with Constitutional Court Decision No. 168/PUU-XXI/2023, has introduced changes to the termination framework. These developments have triggered differing interpretations between employers and workers regarding lawful termination procedures. This empirical study employs a sociological-conceptual approach and utilizes both primary data (interviews with HR personnel and four terminated workers) and secondary legal materials. The findings reveal that the termination process at PT. Gemilang Sawita Indah Permai did not fully align with Constitutional Court Decision No. 168/PUU-XXI/2023, particularly regarding prior notification and dispute resolution mechanisms. Although severance compensation nearly matched the standards outlined in Article 43(1) of Government Regulation No. 35/2021, procedural deficiencies remain. It is recommended that employers strictly adhere to applicable labor regulations to protect workers’ rights and avoid legal and financial repercussions.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Nicholas Sutrisma
AU  - Elvira Fitriyani Pakpahan
AU  - Azharuddin Azharuddin
PY  - 2026
DA  - 2026/01/03
TI  - Termination of Employment of Workers/Laborers by Employers on Efficiency Grounds Due to Losses at PT. Gemilang Sawita Indah Permai
BT  - Proceedings of the 1st International Forum on Psychology, Law, and Education (IFPLE 2025)
PB  - Atlantis Press
SP  - 316
EP  - 326
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-531-7_36
DO  - 10.2991/978-2-38476-531-7_36
ID  - Sutrisma2026
ER  -